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HomeMy WebLinkAboutR-2125 - To offer a dual coverage Medical Insurance Incentive Program-------------- CITY OF MARYSVILLE Marysville,Washington RESOLUTION NO..J)),s" A RESOLUTION OF THE CITY OF MARYSVILE TO OFFER A DUAL COVERAGE MEDICAL INSURANCE INCENTIVE PROGRAM. WHEREAS,the CITY OF MARYSVILLE recognizes that medical benefit premiums are steadily increasing; and WHEREAS,the CITY OF MARYSVILLE recognizes the benefit to the City and its Employees of offering to waive medical insurance benefits for family members who have double coverage. NOW THEREFORE, BE IT RESOLVED BY THE CITY OF MARYSVILLE,WASHINGTON AS FOLLOWS: Section 1.Purpose The City of Marysville recognizes the need for innovative cost sharing of medical insurance benefits between the City and its employees. The Dual Coverage Medical Insurance Incentive Program is a voluntary program that provides an incentive for eligible employees to remove medical insurance coverage from spouses and dependents. Section 2.Incentive Program The medical insurance premium (that would have been paid on the employee's behalf for the eligible dependents)will be split between the City and the Employee. All employees are required to retain coverage through the City. • The City benefits from a 50% cost savings. The employee receives the other 50% cost savings. The incentive will be included in the employee's paycheck and becomes taxable wages. • The incentive is capped at one spouse and two children. Section 3.Scope/Limitations of Program This is a voluntary incentive program available to eligible employees. A.Employees are required to maintain insurance coverage with the City. Only spouses and dependents are eligible to be removed from the medical insurance plan. B. The dual insurance incentive benefit is limited to medical coverage only. Dental and vision coverage will remain in effect for all eligible employees and dependents per the AWC requirement of 100%participation. C.Employees are required to sign a waiver certifying that their dependents have other medical insurance coverage prior to removal from insurance. This waiver includes acknowledgement that proof of continuous, comprehensive medical coverage is required to re-enroll eligible dependents in a City of Marysville plan. D.Reenrollment of eligible dependents can only be done during open enrollment in December of each year.Exception:Should an otherwise eligible dependent loose the non-City medical coverage during the year they can reenroll in the City's medical plan on the 1 st day of the month following loss of coverage. E.The incentive program will remain in effect until the employee notifies the City of a change, the dependent is no longer eligible for medical insurance, or the City modifies or cancels the program. The City of Marysville retains the right to revoke, modify, or cancel this policy at any time and as it sees appropriate. PASSED by City Council and Approved by the Mayor this 26 th day of July 2004. CITY OF MARYSVILLE By~L~ Mayor Attest: Approved as to form: BY/)Jydf~~ ~City Attorney