O-2013-3461 revisions to clarify Retiree Medical Benefits

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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 dependent children turn 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 dependent children turn 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. • Grandchildren, if they are listed as dependents on your tax return. 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, as that term is used in this chapter, is defined as the cost for Employee Only coverage, including the employee and employer contributions, as approved each year by budget, but does not include the dependent coverage portion of 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 for Employee Only coverage, based on years of service and the active employee rate for dependent coverage, regardless of years of service. Retirees shall pay all required contributions to the City by the 15`" of the month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi-annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. Years of Service Percentage Retiree Pays 20 60% of the Total Plan Cost +active employee rate for dependent coverage