HomeMy WebLinkAboutMO #2799MUNICIPAL ORDER NO. 2799
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
2024 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. In addition, any employee should be able to increase their allotment, at
the minimum, by participating in the wellness program. This can be achieved through biometric
readings ($1,000), not using nicotine ($250), getting a physical and turning in lab work ($250)
and participating in six free events ($750) such as walking a 5k. There will be an increase in the
deductible on the Investor Plan in 2024 to comply with IRS regulations. The out of pocket
maximum will also change accordingly on both plans to follow mandated IRS changes.
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 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 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.
D. A _�
Geo ge Bray, Mayor
ATTEST:
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Lindsay Paril City Clerk
Adopted by the Board of Commissioners, October 10, 2023
Recorded by Lindsay Parish, City Clerk, October 10, 2023
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