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Home My WebLink AboutNSN ORD-1996-041 Personnel Ordinance Revision - Health Insurance 1 Orange County Board of Commissioners Action Agenda Item Abstract Meeting Date: October 15, 1996 Action Agenda Item No. 8-G 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 2 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 r 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 provide-its 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 thek the employee's spouse, dependent children and/or family. 7.1 Effective Date Coverage A Q" begin on the first day of emple yme 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, 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-AiR continues paying any additional premiums required at the grates established for dependent coverage. 7.2.2 When the retiree and/or covered dependent becomes eligible for Medicare, Medicare-A4ff becomes the primary insurer and the CountyMfl 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 Getmty may continue coverage on the County's group plan if under age 65 at-their the employee's own cost for up to an 18 months pefied 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 wiIl 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 tefmkn *i^ft em.°edui6ti-Awf A4 ever-kfeoeof . 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 7.3.3 The spouse or dependent child of an employee is entitled to up to 36 months of coverage if any of the€er-the following occurs: -Death of the covered employee -Divorce or legal separation of the covered employee from the employee's spouse -A covered employee pareiWspeuse is becomes entitled to Medicare benefits -A covered dependent is no longer a dependent.. f\e\healord.doc October 1, 1996 a woe, 5, 96 7 5� C. ADO_ PTION OF SCHEDULE OF VALUES FOR 1997 REVALUATION The Board approved the final schedule of values, standards and rules and directed the Assessor to observe all statutory requirements related to public notice about the schedule of values. D. PROPERTY TAX REF_ UNDS The Board approved the following requests for property tax refunds: Grandstaff, John D., Account#198858 for$119.70 Rundell, Margaret D., Account#57849 for$111.84 Music of the World Ltd Inc., Account#162266 for$347.59 Helen G. Torian, Account#73999 for$330.40 E. PERSONNEL ORDINANCE REVISION -HEALTH INSURANCE The Board approved updates to the Orange County Personnel Ordinance, Article IV, Section 7.0, Health Insurance with a change in the effective date to January 1, 1997. F. CLASSIFICATION PLAN AMENDMENT-BUDGET AND MANAGEMENT ANALYST The Board amended the Orange County Classification and Pay Plan by: Establishing the new class of Budget and Management Analyst I at Salary Grade 67 and Changing the title of the Budget and Management Analyst(Salary Grade 69) class to Budget and Management Analyst II (Salary Grade 69) G. HOUSING REHABILITATION CONTRACT AWARD The Board approved awarding a housing rehabilitation contract to R &G Construction Company for exterior repairs at the Elliott Woods Apartments in Chapel Hill in the amount of$13,200. H. IMPACT FEE REIMBURSEMENT_HABITAT FOR HUMANITY The Board approved the impact fee reimbursement request from Habitat for Humanity in the amount of$15,000. 1. REQUEST FOR INCREASE IN HOURS FOR PERMANENT PART-TIME CARE MANAGEMENT POSITION The Board approved an increase in the hours of the permanent part-time Care Manager position from 20 to 24 hours per week. The additional hours are needed to administer the expanded in-home aide service agreement with Monarch Health Care Providers. J. FACILITATION CONTRACT-SHAPING ORANGE COUNTY'S FUTURE The Board approved a contract with the Orange County Dispute Settlement Center for facilitation services to the Shaping Orange County's Future Task Force and authorized the Purchasing Director to execute the appropriate paperwork. K. ZONING ATLAS AMENDMENT -Z-4-96 CHARLES WHEREAS. . DAVIS AND JAMES L. DAVIS The Board approved a Zoning Atlas amendment in Hillsborough Township as requested by Charles W. Davis and James L. Davis with the deletion of lots 1, 2, 4 and 5 in Section A and Lot 1 in Section B. The property is located on the east side of Old North Carolina 86 and is bounded by Cates Creek and the Town of Hillsborough Zoning Jurisdiction to the northwest and the 1-40/NC86 Economic Development District to the south. L. BUDGET AMENDMENT 05 The Board approved the budget Ordinance amendments and grant and capital project ordinances as stated below: GENERAL FUND Source- Intergovernmental $ 98,052 Appropriation- Human Services 98,052