HomeMy WebLinkAbout73-07 RESOLUTION•
RESOLUTION NO. 73-07
A RESOLUTION .AUTHORIZING THE TEMPORARY CONTINUATION OF
MEDICAL INSURANCE FOR PERMANENTLY DISABLED EMPLOYEES WHO
WOULD OTHERWISE LOSE ACCESS TO MEDICAL CARE WHILE
AWAITING APPROVAL OF LONG-TERM DISABILITY INSURANCE OR
SOCIAL SECURITY DISABILITY BENEFITS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes.
the temporary continuation of medicalinsurance for permanently disabled employees who
would otherwise lose access to medical care while awaiting approval of Long -Term Disability
Insurance or Social Security Disability benefits.
PASSED and APPROVED this 17th day of April, 2007.
APPROVED:
By:
DAN COODY, Mayor
ATTEST:
;FAYETfEVILLE; _'-
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By:_�O.vu%c tm2
SONDRA SMITH, City Clerk/Treasurer
Missy Leflar
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
4/17/2007
City Council Meeting Date
Human Resources
Division
Action Required:
''1/i7/07
73-07
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Opertinvithon
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Operations
Department
Staff recommends approval of a resolution providing for temporary continuation of medical insurance for permanently
disabled employees who otherwise would lose access to medical care while awaiting approval of Long Term
Disability insurance or Social Security Disability benefits. The intent is to ensure the disabled employe2s access to
medical care and medicine until Social Security related Medicaid or other coverage becomes possible.
$1,639.74 - $4,579.64 per occurrence
Cost of this request
Account Number
Project Number
Please refer to Memo
Category / Project Budget
Program Category / Project Name
Funds Used to Date Program / Project Category Name
Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
c -
Department D rector
770-7
Date
D9 u „ tihsk,
City Attorney { Date
4-.12-o7
Finance and Internal Service Director Date
Mayor
Comments:
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Watetille
TO:
THRU:
FROM:
DATE:
SUBJECT:
Mayor Dan Coody and the City Council
Gary Dumas, Operations Director
Missy Leflar, Human Resources Division Manager
April 12, 2007
Continuation of medical insurance for permanently disabled employees
Recommendation
Staff recommends approval of a resolution providing for temporary continuation of medical insurance for permanently
disabled employees who otherwise would lose access to medical care while awaiting approval of Long Tenn Disability
insurance or Social Security Disability benefits. This is historically a rare situation but can be dire to the employee to
whom it happens.
Background
Employees who become permanently disabled have historically had enough sick time/vacation time, etc. accrued in their
payroll accounts to cover their portion of their medical insurance premiums while they await approval of long term
disability benefits offered through the City's insurer. On rare occasions (twice to our institutional memory), a disabled
employee does not have such an accrual available.
Discussion
Health insurance can mean the difference between someone having access to medical care or filling a needed prescription.
A permanently disabled employee awaiting approval of disability income may have no access to the money needed to
maintain his or her health insurance until the disability income materializes.
Eligibility for the continuation of medical insurance (at City expense) would be contingent upon: a) the employee having
worked for the City for at least 12 continuous months prior to the onset of disability; b) the employee being unable to
work for the City or in any other gainful employment; c) the employee having applied for either Long Term Disability
insurance benefits or Social Security Disability benefits; d) the employee having no accruals available to pay for their
medical insurance; e) the employee providing an affidavit of means that there are no household resources available to pay
for the insurance; and f) a certification from the employee's primary treating physician that his/her disability is expected
to prevent the employee from working for at least the following 12 consecutive months. A committee of three people (one
from HR and two from Payroll) must approve the employee as having met the necessary criteria. The employee would
also be responsible for maintaining contact with the designated person at the City and providing requested documentation
in a timely manner, or risk forfeiting the medical insurance continuation benefit. The provision has a cap on it for the
unlikely event the employee is turned down for both LTD insurance and Social Security Disability benefits, in which case
the City would stop carrying the insurance once the employee had exhausted his or her administrative appeals for both.
The City would at that time offer COBRA rights to the employee. This would prevent the City from inadvertently
promising "free lifetime insurance" since this resolution is intended as a temporary measure to ensure the employee's
access to medical care and medicine until Social Security related Medicaid or other coverage becomes possible.
Budget Impact
The cost in these rare situations would be paid by the Division to whom the employee reported. The estimated range of
expense, based on 2007 traditional health plan premium amounts, would be $1,693.74 - $4,579.64' assuming a 12 month
period and depending on whether the coverage was single (the former) or family (the latter).
The City would normally pay its portion of the health insurance premiums for the first six months anyway. The additional expense
for the first six months of single coverage would thus be for the employee's portion, which is $31.88 x 6 months = $191.28. The
additional expense for the first six months of family coverage would be $137.72 x 6 months = $826.32. The second six months'
expense would be $1,502.46 for single ($31.88 per month for the employee's part + $218.53 per month for the employer's part) and
would be $3,753.90 for family ($137.72 per month for the employee's part + $487.93 per month for the employer's part).
•
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE TEMPORARY CONTINUATION
OA
OF MEDICAL INSURANCE FOR PERMANENTLY DISABLED
EMPLOYEES WHO WOULD OTHERWISE LOSE ACCESS
MEDICAL CARE WHILE AWAITING APPROVAL OF LONGTE
DISABILITY INSURANCE OR SOCIAL SECURITsY$ gABILITI!
BENEFITS. 74
BE IT RESOLVED BY THE CITY COUNCtH. OF T
FAYETTEVILLE, ARKANSAS:
Section 1. That therCity Council oft
authorizes the temporaryconation of r�nediaal
employees who wou d otherw e�J ose acc
Long -Ter D bility m pran�ar Social
THE IL YY OF
•ty of Faye eville, Arkans cars ereby
urance for permaneric disabled
edital cared .hile awaiting approval of
curity Dbili�efits.
day of April, 2007.
APPROVED: .J + ATTEST:
DA rS46ODY, Mayor
By:
SONDRA E. SMITH, City Clerk/Treasurer
A
(4.23.07)
Clarice Pearman - 73-07
Page 1
From: Clarice Pearman
To: Lefler, Missy
Date: 4.23.07 4:02 PM
Subject: 73-07
Attachments: 73-07 Temp Cont Med Ins.pdf
CC: Audit
Missy:
Attached is a copy of the above resolution passed by City Council, April 17, 2007 regarding medical insurance continuation
on a temporary basis. Please let me know if there is anything else is needed.
Have a good day.
Thanks.
Clarice