03-13-1996 Council Agenda - Laserfiche WebLink

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Program is available only as designated by the City's insurance carrier. Examples of Opt -Out Calculation: OPT -OUT OF SINGLE COVERAGE OPT -OUT OF EMPLOYEE & FAMILY COV. Single Coverage Amount X 50% Opt -Out Payment to Employee City Cap Amount X 50% Opt -Out Payment to Employee OPT -OUT OF FAMILY COVERAGE - LESSER OF THE TWO City Cap Amount - Cost of Single Coverage X 50% Opt -Out Payment to Employee Premium Amount - Cost of Single Coverage X 50% Opt -Out Payment to Employee Employees choosing to enroll in the Opt -Out program must do so during enrollment periods as authorized by the City's Health Insurance Carrier; enrollment during the remainder of the year may be subject to pre - qualification before enrollment is granted. Participants in the Opt -Out Program must sign a release and show proof of medical benefits through another source. The City will have the right to refuse the Opt -Out option for an employee should the City's participation in its Health Insurance Program be jeopardized. Cobra On April 7, 1986, a new Federal Law was enacted requiring that most employers sponsoring group health and life insurance plans offer employees and their families the opportunity for a temporary extension of health coverage (called "Continuation Coverage ") at group rates in certain instances where coverage under the plan would otherwise end. (The employee will pay 102% of the City's cost of providing coverage.) If you are an employee of the City of Little Canada covered by a group health plan or group life insurance plan, you have the right to choose this continuation coverage, at your own expense, if you lose your group health and life coverage because of a reduction in your hours of employment or the termination of your employment (for reasons other than gross misconduct on your part). If you want further information on COBRA, talk to the City Administrator. 17 Page 25