Health Care Plan Credit

Purpose

The University assists regular full-time employees who are enrolled in the health care plan by crediting an amount toward the health care plan’s premium. This amount is referred to as the health care plan credit (credit).

Policy

1) Certain retirees, surviving spouses of eligible spouses and employees who have been approved for long term disability (LTD) benefits are eligible for the credit.

1. Eligible retirees will receive an amount equal to the single coverage tier health care plan credit, which is applied toward a plan.
2. Surviving spouses of a retiree may receive the credit if the following conditions are met:
   
   1. The retiree was eligible for the credit; and
   2. The retiree and spouse were enrolled in a health plan at the time of the retiree’s death.  The surviving spouse credit is equal to 50% of the single coverage tier health plan credit, which is applied toward a plan.  Surviving spouses will become ineligible for the health credit if they remarry. However, they will continue to remain eligible for coverage on the plan.
3. Employees who have been approved for long term disability are eligible to receive the same health credit as regular full-time employees.

2) The employee is responsible for paying the difference between the credit and the cost of the plan selected.

3) Pooling of credits is permissible where both the husband and wife are regular full-time employee of the University and both wish to apply their credits toward family coverage.

4) An employee receiving the credit shall not continue to receive the credit during any month the employee is on leave without pay, with the following exceptions:

An employee who

• Is on an approved Family Medical Leave of Absence,
• Is on an approved temporary disability leave,
• Is on an approved Sabbatical Leave,
• Is receiving temporary total disability (TTD) payments through worker’s compensation, or
• Has an application for benefits under the University's Long Term Disability Plan pending an initial decision.

An eligible employee on leave without pay for part of a month shall receive the credit for that month, if the employee receives a paycheck that month.  An eligible employee separating from employment earns the credit in the final month of employment. The employee should contact the Human Resources Office of Employee Benefits to determine final date of coverage and deductions necessary for that coverage.

5) An employee who was hired prior to July 1, 1997, and retires under the provisions of AR II 1.6-1, is eligible for the credit for as long as the retiree’s enrollment in a University health plan is continuous and provided the employee

1. Has a minimum of 15 years of regular full time employment, or its equivalent; and
2. Is enrolled in a University health care plan at the time of retirement.

6) An employee who was hired on or after July 1, 1997, but before January 1, 2006, and retires under the provisions of AR II 1.6-1, is eligible for the credit as long as the retiree’s enrollment in a University health plan is continuous and provided the employee

1. Has a minimum of 15 years of continuous service immediately prior to retirement, and
2. Is enrolled in a University health care plan at the time of retirement.

7) An employee who was hired on or after January 1, 2006, and retires under the provisions of AR II 1.6-1, is not eligible for the health credit. However, the employee is allowed to participate in a University health care plan on an “access only” basis as long as the retiree’s enrollment in a University health care plan is continuous and provided the employee

1. Has a minimum of 15 years of continuous service immediately prior to retirement, and
2. Is enrolled in a University health care plan at the time of retirement.

Note: Retired individuals eligible for University supplemental retirement benefit calculations (referred to as the “old unfunded plan”) are eligible for the credit regardless of their years of service.

8) An employee approved for benefits under the LTD program is eligible to receive the credit provided the person

1. Was enrolled in a University health care plan at the onset of disability; and
2. After approval for LTD benefits, remains continuously enrolled in a University health care plan.

9) A regular, full time employee who was receiving the credit prior to going on worker’s compensation is eligible to receive the credit while on worker’s compensation.

Process

The Human Resources Office of Employee Benefits is responsible for the administration of this policy.