It is the intention of City Council to provide health insurance and term insurance for all regular and full-time employees and health insurance for regular long-term part-time employees as follows:
(A) The city may enter into contractual agreements for the purpose of providing health insurance for all regular and full-time employees, and pay a negotiated portion of the premiums for both the employee and family coverage. The city may also offer regular long-term part-time employees health and dental insurance at the group rate to be paid by the regular long-term part-time employee.
(B) The city may draw specifications for term life insurance, as is now in effect, in order to provide term life insurance and other benefits for all regular and full-time employees. Unless otherwise covered by a contractual agreement, the amount of life insurance offered to all regular full-time employees will be equal to $75,000 or to the employee’s annual base salary, whichever is greater, effective January 1, 2018.
(C) For the purpose of this section,
REGULAR AND FULL-TIME EMPLOYEES
is defined as including all employees who perform prescribed duties on an established schedule of 40 hours or more per week. Employees working 20 hours or more per calendar week schedule are to be considered regular long-term part-time employees. Employees working seasonal, limited term, temporary, or an average of less than 20 hours per calendar week are to be considered part-time employees and shall be excluded from such insurance programs.
(D) Employees working 40 hours or more per week, but in a position which is intended to exist and continue for only a portion of a calendar year (known as seasonal employees) shall not be considered regular or full-time employees or regular long-term part-time employees and shall be excluded from such insurance programs.
(E) Insurance co-payment.
(1) Effective January 1, 2020, if a preferred provider organization (PPO) health insurance plan is offered, all employees selecting this plan shall, through payroll deduction, contribute 20% of the cost of the monthly health insurance premium unless otherwise covered by contract or employment agreement with the city. If a high deductible health plan (HDHP) combined with a health savings account (HSA) is offered, all employees electing this plan shall through payroll deduction, contribute 15% of the cost of the monthly health insurance premium unless otherwise covered by contract or employment agreement with the city.
(2) For calendar years 2020 and 2021 and for all employees selecting the high deductible health plan (HDHP), the employer shall make total annual HSA contributions of $2,300 for employees who select the single plan and $4,600 for employees select the family plan to the employee's health savings account (HSA). Beginning in calendar year 2022, the employer will contribute a minimum of half the deductible to the employee's HSA. All annual employer contributions may be made on a prorated basis including, but not limited to, annual, quarterly, monthly or bi-weekly.
(3) No deduction shall be made if an employee submits a written statement 30 days in advance indicating that they do not want to be enrolled in any city-provided medical insurance plan.
(F) Flexible medical benefit. In order to assist full-time employees who participate in the health or dental insurance programs for uncovered costs (co-pays, deductibles, etc.), employees will be eligible for reimbursement of $200 for family coverage or $100 for single coverage annually. Beginning 1/1/2021, employees selecting the high deductible HSA health plan option will no longer be eligible for this benefit. Employees selecting the PPO health plan (if offered) will still be eligible.
(G) Retired government employee part-time stipend. Effective August 1, 2018 and at the City Manager’s discretion, retired government employees who are hired by the city in a part-time or seasonal capacity, may be eligible to receive a medical stipend equal to their forfeited pension health reimbursement allowance or similar forfeitures due to their part-time employment status. This stipend shall not exceed $500 per month.
(Ord. 17-1971, passed 4-5-7l; Am. Ord. 11-1987, passed 1-20-87; Am. Ord. 10-1988, passed 3-21-88; Am. Ord. 2-1989, passed 1-16-89; Am. Ord. 13-1990, passed 5-21-90; Am. Ord. 05-2003, passed 5-5-03; Am. Ord. 23-2018, passed 9-17-18; Am. Ord. 34-2019, passed 12-16-19)