Agenda

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County Administrator's Report 10. 1.

BCC Regular Meeting

Discussion

Meeting Date:	10/05/2017
Issue: Establishing Monetary Amount for the Opt-Out Program
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Establishing Monetary Amount for the Opt-Out Program - Eric Kleinert, Human Resources Department Director

That the Board approve one of the three options provided below regarding an Opt-Out program for employees that do not elect the County-Sponsored Health Plan:

A. Option 1 – Provide a monthly stipend of $100 for employees that do not elect County-sponsored insurance and have health insurance other than Medicare or Tricare. Employees that are Medicare-Eligible or have Tricare coverage are not eligible for this benefit; or

B. Option 2 – Provide a monthly stipend of $200 for employees that do not elect County-sponsored insurance and have health insurance other than Medicare or Tricare; or

C. Option 3 – Establish a monthly stipend deemed appropriate by the Board.

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150108, Object Code 53101]

BACKGROUND:

The Human Resources Department was directed by the Board to establish an Opt-Out Program for employees that do not elect the County-Sponsored Health Plan. The County’s Section 125 Plan Document was updated to reflect the capability to provide this program. The Plan Document authorizes the Board to set a monthly stipend for employees that have proof of other health insurance, other than Medicare-eligible and Tricare coverage.

The other item that needs consideration in setting the monthly stipend is the Affordable Care Act. Our Opt-Out stipend meets the criteria for a conditional program to be considered an “eligible opt-out arrangement” by the IRS. Maintaining an “eligible opt-out arrangement” allows our stipend not to be considered in the affordability of our health plan.

BUDGETARY IMPACT:

The budgetary impact will be determined by the number of eligible employees who enroll in the Opt-Out program.

LEGAL CONSIDERATIONS/SIGN-OFF:

The County Attorney’s Office has reviewed the Plan Document and deemed it legally sufficient.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

The Human Resources Department will notify other appointing authorities of the program once approved. The Human Resources Department will coordinate with the Lockard and Williams Insurance Company to ensure the plan document is updated.

Attachments
No file(s) attached.