Resolution 190-2017RESOLUTION NO. 190 -2017
A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS ESTABLISHING THE PROCEDURE FOR
DISTRIBUTION OF $250 SUBSIDY TO MEDICARE- ELIGIBLE "RULE
OF 70" RETIREES TO OFFSET THE COST OF MEDICARE
SUPPLEMENTS; ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, prior to 1999, the County offered free health insurance to retirees, and
WHEREAS, on March 13, 2001, the Monroe County Board of County Commissioners
( "BOCC "), in its capacity as the Plan Administrator of the Monroe County group insurance health
plan ( "Health Plan "), adopted Resolution No. 119 -2001, stating the amount of money retirees
must pay, above and beyond the Florida health insurance subsidy outlined in F.S. 112.313, in
order to maintain Monroe County health insurance after retirement; and
WHEREAS, one of the groups of retirees whose contribution rates were outlined in
Resolution No. 119 -2001 were retirees (as defined by Florida Retirement System) with a
minimum of 10 years of creditable service hired before 10/1/2001 and whose combined age plus
years of service at time of retirement totaled at least seventy (70) ( "Rule of 70 Retirees "); and
WHEREAS, Resolution 119 -2001 was subsequently amended by the BOCC, via
Resolution Nos. 154 -2003, 354 -2003, and 388 -2013; and
WHEREAS, on July 25, 2017, the BOCC adopted numerous changes to contribution rates
of active employees, dependent and retirees under the Monroe County Health Plan; and
WHEREAS, one of the changes approved by the BOCC at the July 25, 2017 meeting was
approval of Option 4A, a $250 /month subsidy to Medicare eligible retirees (defined as Health Plan
members who are eligible for Medicare either as a result of (i) age (65 years of age or older), (ii)
two years after receipt of Social Security Disability Insurance benefits, or (iii) being diagnosed
with end stage renal disease or amyotrophic lateral sclerosis); and
WHEREAS, the intent of Option 4A was to provide a monthly supplement for Medicare -
eligible Rule of 70 Retirees, to offset excessive claim costs ; and
WHEREAS, in Plan Year (calendar year) 2018, the Plan expects to have approximately
344 Medicare eligible Rule of 70 Retirees (313 current retirees, plus an additional 31 members
who are currently active employees, but expected to retire and be eligible for the $250 Subsidy
during the Plan year); and
WHEREAS, forecasted savings as a result of payment of the $250 Subsidy to Rule of 70
Retirees in Year 1 (calendar year 2018) are projected to be approximately $841K (projected
savings of $1.873 million as a result of members leaving the Plan in favor of a Medicare
supplement, partially offset by cost to the Plan of the distribution of the $250 per month subsidy,
which is expected to total approximately $1.032 million in Year 1); and
WHEREAS, under F.S. 112.0801, the BOCC is required to continue to offer membership
in the Health Plan to the retirees, whether they continue on the Plan or not, after receiving the
$250 Subsidy; and
WHEREAS, staff wishes to clarify that the $250 Subsidy will be provided to Medicare -
eligible Rule of 70 Retirees, irrespective of whether the members purchase the Medicare
supplement or not; and
WHEREAS, the BOCC wishes to clarify the process and procedure by which the $250
Subsidy will be distributed to Medicare eligible Rule of 70 retirees.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
Section 1 . Beginning January 1, 2018, Medicare Eligible Retirees will be given a $250 per
month supplement which can be used one of two ways as follows:
(a) The $250 supplement may be used to offset the annual actuarial cost the County will
charge Medicare — eligible Rule of 70 Retirees beginning January 1, 2018; or
(b) The $250 supplement may be paid to the Medicare - eligible Rule of 70 Retirees who do
not remain on the County Health Plan, for any other purchase.
Section 2 . The Monroe County Benefits office will send a mailing to potential retirees in
order to confirm eligibility for the $250 Subsidy. In order to be eligible for the $250 Subsidy, the
retiree must provide a W -9 to the Benefits office.
Section 3 . By no later than January 1, 2018, Monroe County Benefits office will generate
and send a hard copy list of Medicare - eligible Rule of 70 retirees and send the list to the Clerk's
Office (Finance). For each name on the list, Benefits will forward the retiree's W -9 to Finance.
Section 4. The following groups of Medicare - eligible retirees are entitled to the $250
Subsidy:
(a) Rule of 70 Retirees who are currently Medicare - eligible, and who are members of the
Monroe County Health Plan on 1/1/2018; and
(b) Persons who are currently actively employed by Monroe County BOCC or a
participating employer in the Monroe County Health Plan, who meet the Rule of 70
criteria, who are members of the Monroe County Health Plan on 1/1/2018, and who
retire on or after 1/1/2018.
Section 5. Rule of 70 Retirees who are not yet eligible for Medicare shall qualify to
receive the $250 Subsidy once they become Medicare - eligible. The obligation is on the Medicare -
eligible Rule of 70 Retiree to notify the Benefits office once they become Medicare - eligible.
Section 6 . Beginning with the 2018 Plan Year, on a monthly basis, Finance will issue a
check to each eligible retiree. Payments will be made in arrears. Checks will be issued on or
about the 1 st of every month, for the prior month.
Section 7. For all subsequent months starting with February 2018, Benefits will send
an update to Finance by no later than the second Friday of the month, indicating names of retirees
added and deleted from the list. Finance will issue checks to Medicare - eligible Rule of 70
Retirees based on the updated lists.
2
Section 8. Beginning in December 2018, to maintain eligibility in the program, each
retiree must provide a certification to Benefits, in a form designed by Benefits, attesting to the
retiree's continued eligibility and providing updated contact information. The certification must
be filed by the retiree on an annual basis, in order to maintain eligibility in the program.
Section 9. The $250 Subsidy is a taxable fringe benefit. Therefore, on an annual basis,
the Clerk's Office shall cause the appropriate forms (Form W -2 or Form 1099) to be issued to the
taxpayer, and shall cause the appropriate forms to be filed with and reported to the Internal
Revenue Service, in order to report the value of the taxable fringe benefit to the IRS.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida at a regular meeting held on the 5th day of September , 2017.
Mayor George Neugent
Yes
Mayor Pro Tem David Rice
Yes
Commissioner Heather Carruthers
Yes
Commissioner Danny Kolhage
Yes
Commissioner Sylvia Murphy
Yra
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
BY �) 44&- !S
Mayor George Neugent
KEVI ADO , CPA, CLERK
By:
Deputy Clerk
MONROE COUNTY ATTORNEY
AP R ED AS T FORM:
O
U
O
-j
CHRISTINE LIMBERT- BARROWS
W
Z
Y
ASSISTANT COUNTY ATTORNEY
C=
e
Z
DATE:
CD
r
vo
LZ
N
v
x
G
W
Vo
Ls.J
J
N
r..
a
2
U-
M
z