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Item O2 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 18. 2006 Bulk Item: Y es ~ No Division: County Administrator Staff Contact Person: Tom Willi AGENDA ITEM WORDING: Approval to add language to the Health Plan Document to allow employees and retirees to waive the County's medical coverage if the employee provides proof of coverage with another insurer. Final approval allowing the employee to decline such coverage will ultimately be determined by the Plan Administrator (County/Employer). ITEM BACKGROUND: Currently, the County allows retirees to waive the medical coverage (which includes prescription coverage). It has been brought to Administration's attention that employees wish to also exercise this option. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: None STAFF RECOMMENDATIONS: Approval to incorporate wording in the existing Health Plan Document which was approved by the BOCC on September 18, 2006. TOTAL COST: none BUDGETED: Yes No COST TO COUNTY: none SOURCE OF FUNDS: nJa REVENUE PRODUCING: Yes No 1L AMOUNT PER MONTH_ Year APPROVED BY: County Atty _ OMS/Purchasing _ Risk Management_ DOCUMENT A TION: Included Not Required_ DISPOSITION: AGENDA ITEM # Revised 8/06 Office of the Employee Services Ohision Oirector The Historic Gato Cigar ~Factory HOO Simonton Street, Suite 268 Key West, FL 33040 (305) 292-4458 - Phone (305) 292-4564 - "'ax ~~.~ ...,.. ,,----...-.- BOARD OF COUNTY COMMISSIONERS Mayor Charles "Sonny" McCoy, District 3 Mayor Pro Tern Dixie M. Spehar, District 1 George Neugent, District 2 Mario Di Gennaro, District 4 Glenn Patton, District 5 O.Y.~rY ~o~~~E (305) 2944641 TO: Board of County Commissioners FROM: Tom Willi, County Administrator DATE: September 29,2006 SUBJ: Plan Document Revision Waiver of medical coverage This item requests approval of the amended Employee Health Plan Document which was approved at the BOCC meeting of September 18, 2006 and is to become effective January 1, 2007. The Plan is the sole document used in determining the benefits of eligible Covered Persons under the Health Insurance Plan. Currently, the County allows retirees to waive the medical coverage, which also includes prescription coverage. It has been brought to my attention that employees would also appreciate the option to waive the County's medical coverage. In the Health Plan Document, it requires that the County medical plan must be the primary insurer and any other insurance that the employee possess (such as in the case of military spouses, Medicare coverage, retiree insurance from a former employer, etc.) is to be secondary. In some cases, it is more costly for the employee to use the County's insurance (i.e. deductibles, co-pays, etc.) or in other cases, it is beneficial for the County to not be the insurer such as in the cases of catastrophic illnesses which can be costly. It is my recommendation that you approve my recommendation to incorporate wording into the existing Health Plan Document to allow employees to waive medical coverage (which includes prescription coverage) if the employee provides proof of coverage with another insurer. Wording to also include that the final authorization of the request to be determined by the Plan Administrator (County/Employer). If you have any questions, please do not hesitate to contact me at X444 1. Page I of2