(A) Waiver. Permanent, full-time or other benefit eligible employees and dependents of the Village of Indian Hill may be eligible for health insurance coverage under the village's group health insurance plan(s) on the basis of a joint employer-employee contribution as are from time to time determined by Council during service to the village. Employees who are able to obtain health insurance through the employer of a spouse or other source, may choose to decline the employer group healthcare option for minimum essential coverage (MEC) offered by the Village of Indian Hill. Members who choose to decline health insurance coverage shall still be entitled to maintain dental and vision coverage and life insurance on the same terms and conditions as those employees who elect not to waive coverage. In order to be eligible to exercise the health insurance coverage waiver, an employee must provide the village with a completed, signed waiver-form indicating that the employee has voluntarily chosen to decline the village-supplied group health insurance and submit reasonable evidence of alternative coverage which includes an employee's attestation that the employee and all other members of the employee's expected tax family, if any, have or will have minimum essential coverage (other than coverage in the individual marketplace or Medicare). Upon satisfactory proof of adequate coverage, the City Manager may authorize the payment of a $4,000 incentive paid in quarterly payments of $1,000 to employees opting out of coverage. Payments will be made as soon after the end of each plan year quarter as administratively practicable. The amount will be prorated for the time that an employee is eligible for coverage and waives coverage. The change to quarterly payments will begin with the August 1, 2023 plan year.
(B) Employees who have opted out of the village-supplied group health insurance coverage and who lose their alternative source of health insurance coverage may apply to rejoin the plan during the period of open enrollment or pursuant to some other qualifying event giving rise to the need and eligibility to rejoin the plan. In such instances of a qualifying event, the Village of Indian Hill reserves the right to require the employee to provide proof of the loss of alternative insurance. Employees rejoining the plan will no longer be eligible for the waiver payment unless the employee has been off the village's group health insurance plan for three consecutive months prior to the date of the quarterly payment.
(C) This health care insurance option shall not be available to otherwise eligible employees when the spouse or dependent child is also an employee of the Village of Indian Hill and the alternative health care insurance coverage is also provided by the Village of Indian Hill. The waiver shall not be available to permanent, part-time employees who receive health care insurance as part of a retirement package from a previous employer.
(D) Health Savings Account. Along with the village's group health insurance plan(s), the village may offer eligible employees the opportunity to participate in a health savings account (HSA) when covered by a high deductible health plan (HDHP). Under the health savings account option, the village may contribute an amount each year into an HSA for each participating employee based on budget availability. The amount the village contributes is based upon the medical insurance plan the employee selects for their coverage. All annual employer contributions may be made quarterly as soon after the end of each plan year quarter as administratively practicable. The change to quarterly payments will begin with the August 1, 2023 plan year. New hires will receive quarterly contributions on a pro-rata basis corresponding to the number of months of elected coverage. Contributions vest immediately. All contributions become property of the employee when they are deposited in the employee's HSA account. The village may recoup, or recover, contributions made to an employee's HSA only if the employee was never HSA-eligible, the village contribution alone exceeds the employee's statutory maximum annual contribution for the calendar year, or the village contributed more than the maximum annual contribution based on the employee's age and type of coverage elected. Should an employee go from family coverage to individual coverage during the year the village cannot reclaim the money already provided to the employee. If an employee is hired or increases coverage during the year the village will deposit funds or additional funds on a pro-rata basis. If an employee reduces coverage during the year or leaves employment of the village during the year, a portion of the village's or employee's contributions may become taxable and subject to possible penalties based on IRS limitations. In addition to the amount funded by the village, the employee has the option of depositing additional funds through tax deferred payroll deductions up to the limits established by the IRS. Employees must open a health savings account prior to the village being able to deposit funds.
(Ord. 15-19, passed 12-16-19; Am. Ord. 01-23, passed 1-17-23)