TITLE
Recommendation to authorize Human Resources Department to grant a waiver for employees who have ineligible dependent(s) removed from the City’s health, vision and dental insurance plans as part of the Dependent Eligibility Verification program with the exception of cases involving fraud or intentional misrepresentation. (Citywide)
DISCUSSION
City Council action is requested to allow the Human Resources Department (Department) to implement an amnesty program as part of the Dependent Eligibility Verification (DEV) program for the duration of the DEV program. Phase One of the DEV program will cover active employees with dependents. Phase Two of the DEV program will cover retired employee with dependents.
The Department administers the City’s health, dental and vision programs for the City’s active and retired employees. The City currently has approximately 4,000 employee participants and 1,900 retirees enrolled in the health insurance program. Of these, 73 percent have dependents enrolled in the plan, for a total coverage of more than 13,000 people. As provided for under the plan guidelines, employees and retirees are allowed to cover eligible dependents, such as a spouse, child under 26 years of age or an adult child who is disabled.
The Human Resources Department, in cooperation with the Health Insurance Advisory Committee (HIAC), continually evaluates the plans to ensure that the City is providing appropriate coverage for eligible employees and their dependents at a sustainable cost to the City. Part of this review is looking at industry best practices for reducing costs. Conducting a DEV program is considered a best practice cost saving measure to ensure an employee benefits plan only covers qualified eligible dependents and reduces unnecessary benefit expenditures by removing ineligible dependents. The City subsidizes dependent coverage and, therefore, having ineligible dependents on the benefit plan unnecessarily increases the City’s costs....
Click here for full text