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HomeMy WebLinkAboutMINUTES - 07171990 - 1.41 To: BOARD OF SVPERV150RS CONTRA COSTA COUNTY PERSONNEL DEPARTMENT FRC"': Harry D. Cisterman, Director of PVW-A jC Contra Costa DATE: July 16, 1990 COy11 "7��` SUBJECT: Subject: 1st Choice Health Plan: Amendment to Plan Document SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION Recommendation: Amend the 1st Choice, the Contra Costa County self- funded employees indemnity health plan termination provision to comply with existing County policy under which- a member's coverage is terminated at the end of the same month the member resigns, retires, or fails to pay the required premium. Amend Part Eleven: Termination page 52 by replacing . Section B in its entirety with the following: B. Subject to the continuation of coverage provided in Part Twelve, this Plan shall terminate as to any member at the end of any month in which: 1 . The subscriber resigns, retires or is . terminated from employment with Contra Costa County or any special district governed by the Board of Supervisors or otherwise fails to meet the eligibility and Medicare requirements, or 2 . The subscriber or member fails to pay any required subscription charge on or before the due date for such payments, or 3 . The County receives a subscriber's written notice of termination. Amend the continuation of benefits provision as provided below to comply with the new federal regulations affecting continuation of benefits . Amend Part Twelve: page 53 by inserting the following Section A, subsection 2 . "If however an employee is determined to have been disabled within the meaning of the Social Security Act, and proper notice of the disability is provided to the Plan Administrator, then the 18 month period is extended to 29 months . " CONTINUED ON ATTACHMENT: - YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE f S ACTION OF BOARD ON JUE I APPROVED AS RECOMMENDED /K OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE x UNANIMOUS (ABSENT AMID CORRECT COPY OF AN ACTION. TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. -C: County Counsel ATTESTED _ JUL 17 1990 PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR -Sl Insert 1129" on page 54 Section C sl}bsection 1 to read: "The end of the 18, 29 or 36 month continuation period stated above: " Replace Subsection C.4 on page 54 to eliminate COBRA eligibility when the member becomes covered by another group health plan, to read as follows: "The date the person becomes covered without limitations on pre-existing conditions under any other group health plan; " Background: The proposed amendment to Part Eleven: Termination, is necessary to make the plan document consistent with the past and present County practice. The Omnibus Budget Reconciliation Act of 1989 (OBRA- 1989 ) requires changes in the COBRA continuation coverage requirements of 1st Choice. This required change will essentially ensure disabled members the availability of continued coverage until they become eligible for medicare. Fiscal Impact: The amendment to the termination provision should have no fiscal impact on the County. The extended COBRA coverage theoretically could increase 1st Choice liabilities which should be paid from the 1st Choice reserve. FB-4 a:\awc\lstChoice.BO