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HomeMy WebLinkAbout2024-28 Personnel Ordinance - Article VII Employee Benefits - Medicare ReimbursementApproved by the Hamett County Board of Ciommissioners Date 10 - '7-t Board Meeting Agenda Item MEETING DATE: October 21, 2024 TO: HARNETT COUNTY BOARD OF COMIVIISSIONERS SUBJECT: Personnel Ordinance, Article VII Employee Benefits, regarding Medicare reimbursement REQUESTED BY: Kimberly A. Honeycutt, Finance Officer REQUEST: Request that the Harnett County Board of Commissioners approve changes to the Medicare Supplement benefit offerred to eligible County retirees. The change, to become effective January 1, 2025, will make the Medicare Supplement Benefit a Stipend, instead of a reimbursement. Retirees eligible for the Medicare Supplement prior to January 1, 2025 will be allowed to continue receiving the benefit as a reimbursement or stipend. Administrative guidelines for each option are included in the proposed changes to the ordinance. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2024\102124\4E.1 Agenda Form 2024 Medicare Supplement 10.21.2024.docx Page 1 of 2 ORDINANCE NO. 2024-28 ARTICLE VII. EMPLOYEE BENEFITS Section 1. Insurance Benefits Revised IRSUraRGe bORetwtS welluy, All full time employees hired OR eF after b ilxt- !16t OR or'after my V-,291-5-,All full-time em to ees shall be eligible for insurance benefits in accordance with the following policy. A. The County will provide individual medical insurance to all full-time employees. All full-time employees shall be enrolled in the program in accordance with the provisions of the County's insurance contracts on the first day of the month following a thirty (30) day waiting period. B. Any full-time County employee may so choose to have money deducted from his or her check to provide dental and vision insurance for him or herself and to provide health insurance, dental and vision insurance for any dependents he or she may have in accordance with the provisions of the County's insurance contracts. C. Health benefits in retirement are provided on a pro -rated basis for years of service as listed below. Employees who are not eligible for the benefits as outlined below will not be allowed to remain on the County's health insurance plan beyond any rights granted by the Consolidated Omnibus Budget Reconciliation Act (COBRA). D. Individuals must be County employees at the time of retirement to be eligible. If an eligible employee declines retirement health benefits at the time of retirement, the employee will not be eligible for the benefits at a later date. For employees retiring on or after December 16, 2019, an eligible employee must elect or decline the Medicare supplement at the time of retirement to receive the supplement upon turning 65 years of age or becoming Medicare eligible. If an eligible employee declines the Medicare supplement, the employee will not be eligible for the supplement at a later date. For retirements on or [er January 1 2025 an eligible employee that elects the Medicare supplement will receive a stipend equivalent to their retirement benefit. An ar emeloyee that retired prior to January 1, 2025 and elected the Medicare supplement will have the option to continue receiving the supplement in the form of a reimbursement or change to a stipend. Once a retired employee chooses the stipend option, the employee will not be permitted to change back to a reimbursement. For any retired employee that continues to receive the supplement as a reimbursement the County will not reimburse the employee for receipts received for any prior years that the employee is eligible for the supplement. The standard amount of supplement is to be determined by the BOC which will be included in the annual bud et ordinance. FL. G. For those retired employees receiving the Medicare supplement as a stipend. the Medicare supplement will begin upon turning 65 years of age or becoming Medicare eligible. For those receivin tThe Medicare supplement as a reimbursement the supplement will commence upon the retired employee's submittal of receipts for reimbursement for that fiscal year. The County will net To remain eligible for the supplement, retired employees must complete a annual certification during open enrollment period to verify current contact and banking information. If a retired employee fails to update such information and the supplement is terminated the employee shall not be eligible for the Q, 'pplement until the nextopen en enrollment period. G-. H. During retirement, health benefits premium payments are due by the first day of the month that coverage is effective. The premium payment deadline (hereinafter referred to as the "grace period") ends thirty (30) days after the due date. Retired employees who do not pay their premiums in full or who do not have sufficient funds in their account for authorized bank drafts by the final day of the grace period will have their coverage canceled. If the unpaid premium amount due is only for dependent coverage, then only the dependent coverage will be canceled. However, if the unpaid premium amount due is for the retired employee and dependent coverage, then the retired employee and all dependents will have their coverage canceled. Such retired employees and/or dependents who have their coverage canceled for non-payment cannot be reinstated. However, if the premium payment is received after the coverage has been canceled due to non-payment, but the postmark date is on or before the last day of the grace period, then coverage will be reinstated. COBRA - Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, Harnett County offers employees and their eligible dependents the opportunity for temporary extension of continuous insurance coverage in instances where coverage under the plan would otherwise end. Eligible employees have sixty days from the date of the notice to elect COBRA coverage. The Following chart applies to all full-time employees hired on or after July 1st 2015 or those employees who leave the employment of the County and return to work on or after July 1st, 2015. Retirement Health Benefits Employees less than 65 not Medicare eli ible *Minimum Years of Consecutive Harnett Percentage of Cost Paid by County Until County Service for Eligibility Me 65 or Medicare Eligible 20 Years 25 Years 30 Years 50% 75% 100% Retirement Health Benefits (Employees older than 65 and/or Medicare eligible) _ *Minimum Years of Consecutive Harnett Percentage of Cost Paid by County After County Service for Eligibility Age 65 or Medicare Eligible 20 Years 25 Years 50% 75% 30 Years 1 100% ... - - - - .. _ - .� A. - - - _ _._ - - _._ ML _ -- - - - --ALAV .. The following chart applies to all full-time employees hired on or before June 30th gni 5 Retirement Health Benefits (Employees less than 65 not Medicare eli_ ig ble) *Minimum Years of Consecutive Harnett Percentage of Cost Paid by County County Service for Edibility Until Age 65 or Medicare Eli ible 10 Years of Harnett County Service Plus an additional 20 Years of Local 50% Government Service 15 Years 16 Years 50% 55% 17 Years 60% 65% 18 Years 19 Years 70% 20 years 75% 21 Years 77% 22 Years 79% 23 Years 81 % 24 Years 83% 25 Years 85% 26 Years 88% 27 Years 91 % 28 Years 94% 29 years 96% 100% 30 Years Retirement Health Benefits (Employees older than 65 and/or Medicare eli ible) *Minimum Years of Consecutive Harnett County Service for Eli ibilit _ 15 Years _ 16 Years 17 Years 18 Years 19 Years 20 years 21 Years 22 Years 23 Years 24 Years 25 Years 26 Years 27 Years 28 Years 29 years 30 Years Percentage of Cost Paid by County After Age 65 or Medicare Eligible 50% 55% 60% 65% 70% 75% 77% 79% 81% 83% 85% 88% 91% _ 94% 96% 1 nnoi. *Minimum Years of Consecutive Harnett County Service is defined as the period of an employee's continuous and interrupted employment with the County commencing on his or her most recent hire date through his or her retirement date. Employees who are affected by a reduction in force or layoff who return to work when called back to work at the County within one (1) year of their departure will be considered as having continuous service as it relates to continuing medical benefits into retirement.