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HomeMy WebLinkAboutORD-2012-028 Amendment to the Orange County Personnel Ordinance Article IV, Section 28-36, Health Insurance oleo - Zo Z Sec. -36. - Health insurance. 17h It is the policy of Orange County to provide permanent employees both full-time and part-time (regularly scheduled at least 20 hours each workweek) with group health insurance. The cost to the employee for group health insurance is determined each year. Employees also have the option, at additional expense, to cover the employee's spouse, dependent child(ren), domestic partner as defined in this Ordinance, and/or family. (a) Effective Date. Coverage is effective on the first day of the month following the date of employment. (b) Retiree Health Insurance. The County provides retiree health insurance and contributes toward the cost of this for eligible employees. (1) Employees Eligible. a. A Permanent employee employed on or before June 30, 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 1. Has at least ten years of total Orange County Service as a permanent employee. 2. Is age 65 or older and has at least five years of total Orange County Service as a permanent employee. 3. Is retiring on a Disability Retirement and has at least five years of total Orange County Service as a permanent employee. b. A Permanent Employee, employed on or after July 1, 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 1. Has at least twenty consecutive years of Orange County Service as a permanent employee. 2. Is age 65 or older and has at least ten consecutive years of Orange County Service as a permanent employee. 3. Is retiring on a Disability Retirement and has at least ten consecutive years of Orange County Service as a permanent employee. (2) Eligibility Period to Elect Participation in Retiree Health Insurance. To participate in retiree health insurance, the eligible retiree must be retiring directly from Orange County and request such participation within 30 calendar days of the last date of employment. (3) Retiree Health Insurance Plans Available a. For an eligible retiree under age 65. The retiree is covered under one of the County's group health insurance plans. The retiree remains on the County group health insurance plan in which enrolled at retirement. During any subsequent annual enrollment period, the retiree may change to another County health insurance plan as well as add or drop dependents. b. For any retiree eligible for Medicare due to age or disability. Medicare becomes the primary insurer and the County becomes the secondary insurer. County group health insurance ends. The retiree enrolls in Medicare Part A and Part B and pays the cost. The County provides Medicare supplement hospitalization and provider insurance and prescription coverage, as specified in this Ordinance. (4) County Contribution for Retiree Health Insurance a. Effective July 1, 2008, Orange County will not subsidize the cost of retiree dependent health care for employees hired after July 1, 2008. b. For an eligible retiree under Section (b)(1)a.1., the County subsidizes the cost of retiree health insurance as follows: Retiree/Dependent Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under 65 Group Health Plan 100% • Dependent under 65 Group Health Plan 52% • Dependent 65 or over Medicare Supplement None Retiree 65 and over Medicare Supplement 100% • Dependent under 65 Group Health Plan None • Dependent 65 or over Medicare Supplement None c. For an eligible retiree, under Sections (b)(1)a.2 and (b)(1)a.3, the County subsidizes the cost of retiree health insurance as follows: Retiree/Dependent Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under age 65 Group Health Plan 50% • Dependent under 65 Group Health Plan 26% • Dependent 65 or over Medicare Supplement None Retiree 65 or over Medicare Supplement 50% • Dependent under 65 Group Health Plan None • Dependent 65 or over Medicare Supplement None d. For an eligible retiree under Section (b)(1)b, the County subsidizes the cost of retiree health insurance as follows: Retiree Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under 65 Group Health Plan 100% None Retiree 65 and over or Medicare 100% None Medicare eligible Retiree Supplement under 65 Prescription Coverage Disability Retirement Group Health Plan 50% None underage 65 between 10- 20 years of total Orange County service Retiree 65 and over with IMedicare 50% None between 10-20 years of ISupplement [total Orange County Prescription service Coverage *The County pays the percentage shown of the cost not to exceed the amount it contributes for individual/dependent coverage for current employees. For employees hired on or after July 1, 2012, the County cost may not exceed 50% of the amount it contributes for individual/dependent coverage for current employees. The retiree pays the cost for any group health insurance or Medicare supplement coverage for the retiree or the dependent costing more than the County contribution. If the retiree waives coverage,the County provides no cash payment in lieu of such coverage. (5) Payment of Premiums for Which the Retiree Is Responsible. The retiree pays Orange County any required premiums monthly. With appropriate notice, the County terminates coverage when premiums are more than 30 days past due. The health insurance provider bills the retiree directly for any Medicare supplement coverage for a dependent. (6) Dependent Under Age 65 at Death of Eligible Retiree. Upon the death of the retiree enrolled in the County retiree health insurance, the County offers a dependent on group health insurance continuation of coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The dependent is eligible for such coverage for up to 36 months (or until attaining age 65) provided the dependent pays the full cost of this coverage. (7) Eligible Retiree Returning to Work in NC Local Government. If the retiree returns to work with another North Carolina Local Government employer in a position which offers group health insurance coverage (whether the employee elects it or not), Orange County cancels the retiree's health insurance coverage through Orange County and such coverage may not be reinstated. (c) COBRA Coverage. Under the Consolidated Omnibus Reconciliation Act (COBRA), Orange County continues health care coverage to persons who would otherwise lose coverage under a health care plan due to specific events provided the employee, covered spouse, domestic partner, and/or dependent child agrees to pay, and pays, the cost of this coverage. (1) When coverage ceases due to termination or reduction in hours of employment, the employee, covered spouse, domestic partner, and/or dependent child is entitled to up to 18 months of coverage. (2) If the employee, covered spouse, domestic partner, or dependent child is determined disabled under Social Security at the time of termination or reduction in hours, he or she is entitled to purchase coverage for up to 29 months. (3) The spouse, domestic partner, or dependent child of an employee is entitled to up to 36 months of coverage if any of the following occurs: a. Death of the covered employee b. Divorce or legal separation of the covered employee from the .employee's spouse or termination of a domestic partner relationship c. A covered employee becomes entitled to Medicare benefits d. A covered dependent is no longer a dependent. (turd. of 06-07-1976, eff, 08-01-1976;Amend, of 09-16-1997.Art. 1V§ TO, eff 09-01-1997;Amend, of 09-21-2004. eff 01-01-2005:Amend, of 06-24-2008, riff 07-01-2008;Amend, of 06-19-2012. eff 07-01-2012.) Sec. 28-36. - Health insurance. It is the policy of Orange County to provide permanent employees both full-time and part-time (regularly scheduled at least 20 hours each workweek) with group health insurance. The cost to the employee for group health insurance is determined each year. Employees also have the option, at additional expense, to cover the employee's spouse, dependent child(ren), domestic partner as defined in this Ordinance, and/or family. (d) Effective Date. Coverage is effective on the first day of the month following the date of employment. (e) Retiree Health Insurance. The County provides retiree health insurance and contributes toward the cost of this for eligible employees. (5) Employees Eligible. a. A Permanent Employee employed on or before June 30, 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 1. Has at least ten years of total Orange County Service as a permanent employee. 2. Is age 65 or older and has at least five years of total Orange County Service as a permanent employee. 3'. Is retiring on a Disability Retirement and has at least five years of total Orange County Service as a permanent employee. b. A Permanent Employee, employed on or after July 1, 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 4. Has at least twenty consecutive years of Orange County Service as a permanent employee. 5. Is age 65 or older and has at least ten consecutive years of Orange County Service as a permanent employee. 6. Is retiring on a Disability Retirement and has at least ten consecutive years of Orange County Service as a permanent employee. (6) Eligibility Period to Elect Participation in Retiree Health Insurance. To participate in retiree health insurance, the eligible retiree must be retiring directly from Orange County and request such participation within 30 calendar days of the last date of employment. (7) Retiree Health insurance Plans Available a. For an eligible retiree under age 65. The retiree is covered under one of the County's group health insurance plans. The retiree remains on the County group health insurance plan in which enrolled at retirement. During any subsequent annual enrollment period, the retiree may change to another County health insurance plan as well as add or drop dependents. b. For any eligible retiree eligible for Medicare due to age or disability. Medicare becomes the primary insurer and the County becomes the secondary insurer. County group health insurance ends. The retiree enrolls in Medicare Part A and Part B and pays the cost. The County provides Medicare supplement hospitalization and provider insurance and prescription coverage, as specified in this Ordinance. (8) County Contribution for Retiree Health Insurance a. Effective July 1, 2008, Orange County will not subsidize the cost of retiree dependent health care for employees hired after July 1, 2008. b. For an eligible retiree under Section (b)(1)a.1., the County subsidizes the cost of retiree health insurance as follows: Retiree/Dependent Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under 65 Group Health Plan 100% • Dependent under Group Health Plan 52% 65 • Dependent 65 or Medicare Supplement None over Retiree 65 and over Medicare Supplement 100% • Qependent under Group Health Plan None 65 • Dependent 65 or Medicare Supplement None over c. For an eligible retiree, under Sections (b)(1)a.2 and (b)(1)a.3, the County subsidizes the cost of retiree health insurance as follows: Retiree/Dependent Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under age 65 Group Health Plan 50% • Dependent under Group Health Plan 26% 65 • Dependent 65 or Medicare Supplement None over Retiree 65 or over Medicare Supplement 50% • Dependent under Group Health Plan None 65 • Dependent 65 or Medicare Supplement None over d. For an-eligible retiree under Section (b)(1)b, the County subsidizes the cost of retiree health insurance as follows: Retiree Health Plan Type Retiree Dependent Supplement* Supplement* Retiree under 65 Group Health Plan 100% None Retiree 65 and over or Medicare Supplement 100% None Medicare eligible Prescription Coverage Retiree under 65 Disability Retirement Group Health Plan 50% None under age 65 between 10-20 years of total Orange County service Retiree 65 and over Medicare Supplement 50% None with between 10-20 Prescription Coverage years of total Orange County service The County pays the percentage shown of the cost not to exceed the amount it contributes for individual/dependent coverage for current employees. For employees hired on.or after July 1, 2012, the County cost may not exceed 50% of the amount it contributes for individual/dependent coverage for current employees. The retiree pays the cost for any group health insurance or Medicare supplement coverage for the retiree or the dependent costing more than the County contribution. If the retiree waives coverage, the County provides no cash payment in lieu of such coverage. (5) Payment of Premiums for Which the Retiree Is Responsible. The retiree pays Orange County any required premiums monthly. With appropriate notice, the County terminates coverage when premiums are more than 30 days past due. The health insurance provider bills the retiree directly for any Medicare supplement coverage for a dependent. (6) Dependent Under Age 65 at Death of Eligible Retiree. Upon the death of the retiree enrolled in the County retiree health insurance, the County offers a dependent on group health insurance continuation of coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The dependent is eligible for such coverage for up to 36 months (or until attaining age 65) provided the dependent pays the full cost of this coverage. (7) Eligible Retiree Returning to Work in NC Local Government. If the retiree returns to work with another North Carolina Local Government employer in a position which offers group health insurance coverage (whether the employee elects it or not), Orange County cancels the retiree's health insurance coverage through Orange County and such coverage may not be reinstated. (f) COBRA Coverage. Under the Consolidated Omnibus Reconciliation Act (COBRA), Orange County continues health care coverage to persons who would otherwise lose coverage under a health care plan due to specific events provided the employee, covered spouse, domestic partner, and/or dependent child agrees to pay, and pays, the cost of this coverage. (4) When coverage ceases due to termination or reduction in hours of employment, the employee, covered spouse, domestic partner, and/or dependent child is entitled to up to 18 months of coverage. (5) If the employee, covered spouse, domestic partner, or dependent child is determined disabled under Social Security at the time of termination or reduction in hours, he or she is entitled to purchase coverage for up to 29 months. (6) The spouse, domestic partner, or dependent child of an employee is entitled to up to 36 months of coverage if any of the following occurs: a. Death of the covered employee b. Divorce or legal separation of the covered employee from the employee's spouse or termination of a domestic partner relationship c. A covered employee becomes entitled to Medicare benefits d. A covered dependent is no longer a dependent. (Ord, of 06-07-1976, eff 08-61-1976:09-16-1997, Art. IV§ 70, eff, 09-01-19971 09-21-2004, eff. 01-01-2005 06-24- 26£18, eff 87-01-2008) b. Amendment to the Orange County Personnel Ordinance Article IV, Section 28-36, Health Insurance The Board considered approving an amendment to the Orange County Personnel Ordinance Article IV, Section 28-36, Health Insurance regarding retiree health coverage for employees hired on or after July 1, 2012. Interim Human Services Director Sharon Laisure went through the changes that would occur as a result of this amendment: - Increase the eligibility requirement from a total of ten year Orange County service to twenty continuous years of Orange County service for a retiree under age 65 retiring with a service retirement; - Increase the eligibility requirement from a total of five years Orange County service to ten continuous years of Orange County service for a retiree age 65 or older OR an employee retiring with a disability retirement; - Reduce the cap on the amount the County will pay for post-65 benefits to 50% of the amount paid for active employees' health insurance (compared to the current 100%); and - Require any retiree eligible for Medicare due to disability or age to enroll in Medicare Parts A and B and end enrollment in the County's group health insurance. This will affect all employees hired on or after July 1st, 2012. Commissioner Yuhasz asked about the "continuous service" and Frank Clifton said that they found under the older program that people would work then leave and then come back to retire in order to get the retirement health benefits. He said that this is a retention benefit. Commissioner Yuhasz said that the 20-year period is long enough that would warrant this particular benefit. Commissioner Jacobs agreed. Commissioner Foushee suggested seeing what happens in the market for other local governments. Frank Clifton said that Orange County has one of the best benefit packages. He will do further research if the Board wants. Commissioner Hernminger agreed with Commissioner Yuhasz and Commissioner Jacobs, however, she is not comfortable with continuous at this point and she would like to see more information. Commissioner McKee said that he would like to see more information on what other local governments are doing or have done. Commissioner Gordon agreed with the continuous function and she said that staff could review it if the Board wants. A motion was made by Commissioner McKee seconded by Commissioner Foushee to approve an amendment to the Orange County Personnel Ordinance Article IV, Section 28-36, Health Insurance regarding retiree health coverage for employees hired on or after July 1, 2012 and ask for additional information on other counties'actions. VOTE: UNANIMOUS Commissioner Jacobs said that he would like to see the breakdown of pay grade in the motion and Commissioner McKee agreed. Commissioner Foushee said that the County Commissioners did talk in the work session that employees are to be informed during the entire health insurance discussion process whether the County renews or not with United Health Care (UHC) and she too has received numerous complaints from employees about UHC. She said that employees did not feel that they got what they thought they were going to get in healthcare. She hopes that whatever is