RESOLUTION 2013-29

RESOLUTION MODIFYING GROUP HEALTH INSURANCE BENEFITS FOR

PART-TIME CALUMET COUNTY EMPLOYEES

To the Honorable Chair and Board of Supervisors of Calumet County, Wisconsin:

WHEREAS, Calumet County currently offers a group health insurance program for regular full-time and qualifying regular part-time employees; and

WHEREAS, Part-time employee as defined in the Calumet County Personnel Policy Manual last revised December 2012 is an employee who works fewer hours than the department’s regular full-time work week on a regular basis; and

WHEREAS, Currently regular part-time employees working an annual average of half-time or more per week, receive all employee benefits on a pro-rated basis except as otherwise expressly provided for in the Personnel Policy Manual; and

WHEREAS, Under the Affordable Care Act (ACA), effective January 1, 2015, companies with 50 or more employees are required to offer affordable health care coverage to full-time employees (those employees working on average 30 hours or more per week) or be subject to penalties for not providing health insurance; and

WHEREAS, The ACA introduced new nondiscrimination requirements for insured group health plans, with a commencement date to be determined; and employers that do not comply will be subject to financial penalties for noncompliance; and

WHEREAS, The nondiscrimination provisions provide that a fully insured health plan cannot discriminate in favor of participants who are highly compensated individuals as to benefits that are provided. In addition, differences in such features as employer contributions will no longer be acceptable; and

WHEREAS, The County’s policy of providing health care coverage to part-time employees at a prorated premium contribution, under the nondiscrimination provisions introduced with the ACA, runs the risk of failing to satisfy the nondiscrimination rules and may subject the County to a financial penalty; and

WHEREAS, The Calumet County Administrative Services Committee has reviewed the provisions of the ACA; and

WHEREAS, Based on the above, it is recommended that qualifying employees working an average of 30 hours or more per week be provided health care coverage at the same premium contribution levels as regular full-time County employees, subject to the terms and conditions of the County’s group health insurance program, effective January 1, 2014; and

WHEREAS, In light of the lack of published guidance on insured plan nondiscrimination rules, there is no definitive way to plan for the application of the nondiscrimination rules, to fully insured health insurance plans; and

WHEREAS, Despite delay in implementation of the ACA’s central provisions, the employer mandate, to January 1, 2015; Calumet County is faced with taking action effective January 1, 2014, in order to minimize the impact of the potential nondiscrimination financial penalties.

NOW, THEREFORE, BE IT RESOLVEDThat qualifying Calumet County employees working 30 hours or more per week be entitled to participate in the County’s group health insurance program subject to the terms and conditions of the program, effective January 1, 2014, at the same premium contribution levels as regular full-time employees.

BE IT FURTHER RESOLVEDThat Chapter Six of the Calumet County Personnel Policy Manual last revised December 2012 be rewritten as follows:

SECTION 2 – PART-TIME EMPLOYEE BENEFITS

2.01Regular part-time employees working an annual average of half-time or more per week, receive all employee benefits on a pro-rated basis, except as otherwise expressly provided for herein. [Example: a seventy percent (70%) employee would receive seventy percent (70%) of the family or single health insurance and life insurance premium benefits.] The percentage of employment which has been established by the budget or Board, shall determine the benefit pro-ration with the exception of Home Health Registered Nurses and Aides, who will be pro-rated in July of each year based upon the percentage of full-time hours worked in the previous twelve (12) months using the following criteria: regular, overtime, compensatory time worked, holiday worked, worker’s compensation, PTO, ELB, and jury duty. Any change in pro-rata percentage will be applied on the first paycheck of the following month.

a)Exception. Qualifying employees working an average of 30 hours or more per week are eligible to receive health insurance coverage at the same premium contribution level as regular full-time employees.

SECTION 3 – INSURANCE

3.01Health Insurance. The County offers a group health insurance program for regular full-time and qualifying regular part-time employees. The health insurance available to employees is dependent on an employee’s participation in the Wisconsin Retirement System and qualification for the established wellness incentive. More information on the health insurance program is available from the Personnel Department and is posted on the Calumet County website.

3.05Employer/Employee Contributions. Unless an employee qualifies for the reduction in premium as described above, the County pays eighty percent (80.0%) of the monthly premium for either family or single coverage, and the Employee shall pay the difference. However, the County’s financial responsibility is limited to eighty percent (80.0%), plus any applicable reduction in premium, of the HDHP HMO plans offered to employees.

a)Reduction in the Required Employee Contribution. If the requirements for c) above are satisfied, the employee shall receive a ten percent (10%) reduction in the required employee contribution.

Dated this 17thday of December 2013.

INTRODUCED BY THE ADMINISTRATIVE

SERVICES COMMITTEE

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Alice Connors, Chair

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Ronald Dietrich

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Brian Leonhardt

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Steve Phipps

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Ralph Prescott

COUNTERSIGNED BY

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Alice Connors, County Board Vice Chair