(A) Eligibility. All employees of the town who terminate their employment with the town are eligible to continue insurance on the town’s health insurance plan for a period not to exceed 18 months as provided by COBRA and under the terms and conditions prescribed by COBRA.
(B) Other available insurance and termination. No retiree eligible for Medicare, Medicaid or any other health or hospital program available through any other governmental entity shall be eligible to enter, or continue in, the program created in this section. In the event the retiree ceases to be covered under the program for any reason, any other person covered by the program because of a relationship with the retiree shall also cease to be covered.
(C) Termination of program. The town reserves the right to cancel this program upon 30 days’ notice. Upon cancellation, no further obligation shall be placed upon the town under this section.
(D) Time limit to accept benefit. A retiree shall have 30 days from the date of retirement to elect to be covered by the plan created by this section. If such election is not made, or if, after being made, the retiree cancels participation then the retiree shall no longer be eligible for the insurance provided by the program.
(E) Level of coverage. All retirees who elect coverage under the program shall be entitled to continue the same level of health insurance coverage in force on the date of their retirement, subject to the ability of the town to buy such coverage in the insurance market at an acceptable price. The town reserves the right to modify its group health insurance coverages and the retiree is subject to such modifications. Increase or decrease in coverage at the retiree’s request is not permitted.
(F) Retiree cost. Each retiree who wishes to participate in the program created by this section shall pay one-half of the monthly premium cost for coverage. Such payment shall be due and payable, at the Town Hall, on the first business day of each month. Failure to pay the premium will result in permanent termination of the coverage for such retiree.
(Ord. 1998-2, passed - -1998; Ord. 2006-4, passed 1-25-2006)