05-23-11 Regular Meeting of La Porte City Council

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Medicare Eligible Retirees The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. Death of an Employee An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior to their retirement, will be allowed to continue coverage for dependents who were covered at the time of the Retiree's death under this policy until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 26 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter. Death of a Retiree If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 26 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter. Eligible dependents include: • Your lawful spouse who is legally married to and living with you; • natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; • Or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 26 Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents may be dropped by written request at any time. Premiums The City of La Porte utilizes a self - funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions. Costs to the retiree shall be based on a cost schedule determined by years of service, outlined below. Under this schedule, a retiree pays a percentage of the total plan cost, based on years of service, but pays the entire cost of dependent coverage, regardless of years of service.