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HomeMy WebLinkAboutAgenda - 10-15-1996 - 8e 1 t Orange County Board of Commissioners Action Agenda Item Abstract Meeting Date: October 15, 1996 Action Agenda Item No. 8-e Subject: Personnel Ordinance Revision - Health Insurance Department: Personnel Public Hearing: Yes No x Budget Amendment Needed: Yes No x Attachment(s): Information Contact: Draft Personnel Ordinance Revision Elaine Holmes, Personnel Director Article IV, Section 7.0, Health Insurance Extension 2550 Telephone Number: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 Purpose: To consider updates to the Orange County Personnel Ordinance, Article IV, Section 7.0, Health Insurance. Background: At the September 3, 1996 Board of Commissioners meeting, the Board considered health insurance options for 1997. As part of this, the Board decided to adopt the recommendation to change the effective date of health insurance coverage for new employees beginning work January 1, 1997 and after. In the past, health insurance coverage has been effective as of the first day of employment. For example, if an employee begins work August 12, coverage is effective August 12. Under the change adopted, health insurance coverage would be effective on the first day of the month following the date of employment. For example, if an employee began work August 12, coverage would be effective September 1. The attached revision to the Personnel Ordinance amends the Ordinance to reflect the Board's decision to make health I 2 t insurance coverage effective on the first day of the month following the date of employment. In addition to the effective date change the remaining portions of the health insurance section of the Ordinance which cover retiree health insurance and COBRA have been updated and clarified. • As to retiree health insurance, the revision includes clarification on the eligibility, timing of enrollment and County contribution. • As to COBRA, the eligibility period for the employee and dependents is re-stated to conform with COBRA requirements. Recommendation: The Manager recommends the Board adopt the recommended revision to the Health Insurance section of the Orange County Personnel Ordinance effective January 1, 1997. f:\e\healabs.doc 3 Draft Revision to the Orange County Personnel Ordinance, Article IV, Section 7.0, Health Insurance 7.0 Health Insurance It is the policy of Orange County to provide4ts 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*xeir the employee's spouse, dependent children and/or family. 7.1 Effective Date Coverage is effective on the first day of the month following the date of employment. 7.2 Retiree Health Insurance 7.2.1 An employee who retires from Orange County with at least 10 or more years of total Orange County service as a permanent employee and whose last North Carolina local government retirement system employer providing major medical coverage was Orange County, will be is covered, upon request, by the County's group health insurance plan. Such request must be made within 30 days of the Orange County retirement effective date. The eligible retiree has the option, at additional expense, to cover the retiree's spouse, dependent children and/or family. The County continues its contribution for the retiree's and any covered spouse's or dependent's health insurance coverage at the same amount it contributes for employees. The retiree-A44 continues paying any additional premiums required at the euffeR4 rates established for dependent coverage. 7.2.2 When the retiree and/or covered dependent becomes eligible for Medicare, Medicare-A44 becomes the primary insurer and the County wi44 becomes the secondary insurer. County group health insurance coverage is canceled and replaced by Medicare supplement insurance. The County pays the cost of the individual retiree's Medicare supplement coverage so long as this does not exceed the contribution the County makes for individual employee coverage. The retiree is responsible for the cost of any spouse/dependent Medicare supplement coverage. 7.2.3 An employee with less than 10 years of Orange County service as 4 a permanent employee with Orange r eunty may continue coverage on the County's group plan if under age 65 at4he4f the employee's own cost for up to an 18 months per-ied or, if determined disabled under Social Security, for up to 29 months, as provided under COBRA. 7.3 COBRA Coverage Under the Consolidated Omnibus Reconciliation Act(COBRA), Orange County wi44 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 and/or dependent agrees to pay, and pays, the cost of this coverage. 7.3.1 When coverage ceases due to termination or reduction in hours of employment,the employee and covered spouse and/or dependent is entitled to up to 18 months of coverage due to tefmination of a t of we}lof . 7.3.2 If the employee, covered spouse or dependent 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 of eever-age due to disabilit-Y. 7.3.3 The spouse or dependent child of an employee is entitled to up to 36 months of coverage if any of the for-the following occurs: -Death of the covered employee T-efminatien of employee par-en t1spouse -Divorce or legal separation of the covered employee from the employee's spouse -A covered employee-paferAApeu is becomes entitled to Medicare benefits -A covered dependent is no longer a dependent. f:\e\healord.doc October 1, 1996