HomeMy WebLinkAboutMO #2504MUNICIPAL ORDER NO. 2504
A MUNICIPAL ORDER ESTABLISHING POLICY FOR USE OF SPENDING
CREDITS TOWARD THE PURCHASE OF CERTAIN BENEFITS SUCH AS HEALTH, DENTAL OR
VISION PURSUANT TO THE CITY'S GROUP HEALTH INSURANCE PLAN FOR THE 2022 PLAN
YEAR
BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY:
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 $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. Employees who opt out of the City's group health insurance, who were hired prior to
January 1, 2014, and can show proof of coverage under another sponsored group health insurance plan
shall receive an employer contribution of $2,850. New participants to the waiver credit, with a hire date
after January 1, 2014 are subject to a $500 maximum employer contribution 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 group health insurance plan, then such employee shall be governed
under the procedures established in Section 4.
B. 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 participate in an employer contribution of
any unspent health insurance credits.
Section 4. All eligible employees who opt out of the City's group 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. All eligible employees and their spouse may receive the maximum wellness
credit that can be earned and that is $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 H1PAA'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 plan year starts
except as otherwise permitted by this Municipal Order.
Section 8. This Order shall be in full force and e ct from and after the date of its
adoption. 4 XA
Ge rge Bray, Mayor
ATTEST:
POtM�
Lindsay Parish, Clerk
Adopted by the Board of Commissioners, September 28, 2021
Recorded by Lindsay Parish, City Clerk, September 28, 2021
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