63.07.04  EXTENSION OF GROUP HEALTH BENEFITS

College Policy Number/Title:

• 63.07  Benefits

The college provides the opportunity for continued coverage under college group health plans to three groups of former full-time, budgeted employees:  (1) retirees; (2) those covered under COBRA and (3) employees who are on long-term disability leave (LTD) or disability separation.

Retirees Health Insurance Coverage Plan

Employees who retire, and any covered family members, have the option of continuing their coverage indefinitely in the college’s health insurance plan in which they are members at the time of retirement; however, they assume the total premium cost.  Premium remittance is made directly to the college.  During open enrollment each May or June, retirees or family members may change plans. 

The plan has the following provisions:

• Retirees must have five years or more of full-time service to be eligible to participate in the group health insurance plan; retirees must have a minimum of ten years of full-time service to be eligible to receive a college subsidy toward the cost of the group health insurance plan.
• Retirees must meet one of the following rules to be considered a retiree eligible to participate in the group health plan: 1) 55 years of age with at least 15 years of HCC service; 2) 59 ½ years of age with at least 10 years of HCC service; 3) 62 years of age with at least five years of HCC service; and 4) 30 years of HCC service regardless of age.
• Employees must elect the benefit at the time of retirement; retirees who subsequently drop their coverage or coverage lapses for any reason, will not be able to re-enroll later;
• Eligible retirees may purchase coverage for their dependents (includes spouses) by paying the full cost of dependent insurance; dependents may be added to, or deleted from, coverage at annual open enrollment, or within 30 days of a documented life status change such as birth, death, marriage, divorce or change of employment status.
• Eligible retirees and/or their dependents over the age of 65 must be enrolled in both Medicare Part A and Part B;
• The college reserves the right to alter the plan at any time with a minimum of 30 days notice of any significant changes in benefits.
• The college reserves the right to terminate the plan if it faces serious financial limitations.
• College contributions will be determined each year based on years of service; the rates will be provided to eligible retirees.
• If an enrolled eligible retiree dies, his/her eligible dependent/s may continue coverage by paying the full cost of their retiree plan until he/she marries, becomes eligible for coverage under another employer–sponsored health insurance plan or otherwise fails to meet the eligibility requirements of the active employee plan;
• If a retiree who is eligible for benefits under this program then becomes eligible for college health insurance coverage due to circumstances such as re-employment with the college or due to a spouse’s coverage with the college, the retiree does not lose eligibility for the retiree health insurance program, as long as coverage under a college health insurance plan has remained continuous.

COBRA

In compliance with the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 and amendments and all applicable state laws, the college offers current group health benefits in certain situations to exiting employees and/or family members:

1. The death of a covered employee;
2. The termination (other than by reason of the employee's gross misconduct), or reduction of hours, of a covered employee's employment;
3. The divorce or legal separation of a covered employee from the employee's spouse;
4. A covered employee's becoming entitled to Medicare benefits under Title XVIII of the Social Security Act (42 U.S.C. 1395-1395ggg);
5. A dependent child's ceasing to be a dependent child of a covered employee under the generally applicable requirements of the plan; or
6. A proceeding in bankruptcy under Title 11 of the United States Code with respect to an employer from whose employment a covered employee retired at any time.

Under COBRA, as soon as employees become eligible for group health benefits, they and certain dependents may be entitled to continued coverage for varying periods of time depending on the qualifying event.  The qualifying event could be termination of employment, divorce, etc.  Employees are required to inform the office of human resources of such events.  The college will then notify all individuals who qualify for continued coverage of their eligibility.  Former employees and their family members requesting continued coverage will be charged 100% of the cost of such benefits, plus a 2% administrative charge.  Detailed information about COBRA is available in the office of human resources.  During open enrollment each May or June, COBRA participants may change plans. 

Long-Term Disability

Employees who are disabled and on approved long-term disability leave who do not meet the retiree policy requirements may continue coverage with the college by paying 100% of the cost of the insurance until Medicare becomes available up to a maximum of two years; in order to be eligible for this coverage, employees must be in the plan at the time that the long-term disability begins.

Effective Date:  1/14/2005