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MUNICIPAL ORDER NO. 1801
A MUNICIPAL ORDER AMENDING THE POLICY FOR USE OF SPENDING
CREDITS TOWARDS THE PURCHASE OF CERTAIN BENEFITS SUCH AS HEALTH, DENTAL
OR VISION PURSUANT TO THE CITY'S GROUP HEALTH INSURANCE PLAN FOR THE 2015
PLAN YEAR TO CHANGE THE MAXIMUM WELLNESS CREDIT THAT EMPLOYEES CAN
EARN FROM $2,000 TO 2,250
WHEREAS, the City of Paducah adopted Municipal Order No. 1795 on October 14,
2014, to establish a policy for the use of spending credits towards the purchase of certain benefits such as
health, dental or vision pursuant to the City's group health insurance plan for the 2015 plan year; and
WHEREAS, the City amended the policy by adopting Municipal Order No. 1797 on
October 28, 2014, to change the employer contribution amount from $2,350 to $2,850; and
WHEREAS, the City desires to amend the policy to increase the maximum wellness
credit that employees can earn from $2,000 to $2,250.
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
Section 1. To be eligible for the benefits provided in Section 2, employees must timely
enroll in that portion of the City's group health insurance plan referred to as medical and prescription
drug coverage. The City shares the cost of medical, prescription drug, dental and vision coverage with
the City employees by contributing for the plan year 2015, $8,724 per employee ("base credit") to be used
under the Plan and other applicable credits which may be earned pursuant to the applicable City policy.
Section 2. All eligible employees who timely apply for coverage under the City's group
health insurance plan (medical and prescription drug coverage) shall be permitted to redirect any unspent
employer contribution toward the applicable pre-tax vehicle (HSA, FSA, HRA) subject to all applicable
federal and state laws and regulations and as may be amended from time to time by order of the Board of
Commissioners. Any changes requested by the employee due to change in family status shall be
considered on a pro -rata basis from the effective date of timely enrollment pursuant to the plan documents
of any affected benefit plan.
Section 3.
A. For the plan year 2015, all eligible employees who opt out of the City's group health
insurance plan (medical and prescription drug coverage) but can show proof of coverage under a spouse's
employer-sponsored group health insurance or other group sponsored health -insurance plan acceptable to
the City in its sole discretion, shall be permitted to an employer contribution of any unspent health
insurance credits limited to $2,850 which can be applied to an HRA, deposited on an as accrued basis, as
established by the City and which can be amended from time to time by order of the Board of
Commissioners. In the event the City in its sole discretion does not accept the creditability of the
spouse's employer-sponsored group health insurance plan, other group sponsored health insurance plan,
or non -group sponsored health insurance plan, and the employee chooses to remain covered under such
spouse's group health insurance plan, then such employee shall be governed under the procedures
established in Section 4.
B. For the plan year 2015, all eligible employees who opt out of the City's group
health insurance plan to enroll in a health insurance plan that is not under a spouse's employer-sponsored
group health insurance or other group sponsored health insurance plan shall not be permitted to an
employer contribution of any unspent health insurance credits.
Section 4. For the plan year 2015, all eligible employees who opt out of the City's group
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health insurance plan (medical and prescription drug coverage) for any reason other than those stated in
Section 3 above, shall not be entitled to an employer contribution of unspent credits.
Section 5. For the plan year 2015, all eligible employees and their spouse may receive
the maximum wellness credit that can be earned and that is $2,000 $2,250 for an employee and $1,000
for a spouse.
Section 6. For all employees who subsequently become eligible for coverage under the
City's group health insurance plan because of initial employment or a qualifying event (i.e., change in
family status), and is timely enrolled under the Plan or opts out of the Plan, shall be governed under the
same procedures described in Sections 1-4 above, except any benefits shall be applied on a pro -rata basis.
Section 7. Except as provided under the applicable plan document covering any benefit
plan, or HIPAA's special enrollment rights or the United States Internal Revenue Code, or any other
applicable federal or state law or regulation, or any participant in the City's group health plan as described
in Section 2 or any employee who has opted out of the plan as described in Sections 3 or 4 above, shall be
precluded from making any changes to pre-tax elections (HSA, FSA, HRA) once the 2015 plan year starts
except as otherwise permitted by this Municipal Order.
Section 8. This Order shall be in full force and effect from and after the date of its
adoption.
ATTEST:
Tammara S. Sanderson, City Clerk
Adopted by the Board of Commissioners, December 9, 2014
Recorded by Tammara S. Sanderson, City Clerk, December 9, 2014
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