Township of Parsippany-Troy Hills, NJ Waiver of Health Benefit Coverage

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Article III Waiver of Health Benefit Coverage

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[Adopted 6-21-2011 by Ord. No. 2011:11[1]]

Editor's Note: This ordinance also repealed former Art. III, Waiver of Health Benefit Coverage, adopted 10-23-2007 by Ord. No. 2007:36, as amended.

§ 57-3 Waiver of health benefit coverage.

Any Township employee, receiving health care benefits under the Township's current health care benefits plan, who is also eligible for other health care coverage may waive coverage under the Township's health care benefits plan by executing a written waiver of coverage on forms prescribed by the Department of Administration and filed with the Township.

If coverage was waived prior to May 21, 2010, the Township shall continue to pay to the employee the amount annually saved by the Township for the relevant medical and/or dental health care benefit coverage waived, not to exceed 35% of the annual premium of the COBRA rates, less administrative fee, if the Township is self-insured, or 35% of the premium if the Township contracts for fully-insured plans.

If coverage is waived on or after May 21, 2010, the Township will pay to the employee the amount annually saved by the Township for the relevant medical and/or dental health care benefit coverage waived, not to exceed 25% of the annual premium of the COBRA rates, less administrative fee, if the Township is self-insured, or 25% of the premium if the Township contracts for fully-insured plans, or $5,000, whichever is less.

Any Township employee who waives health care benefits coverage shall be permitted to resume coverage under the same terms and conditions as apply to initial coverage if the employee ceases to be covered through the employee's spouse for any reason, including, but not limited to, the retirement or death of the spouse or divorce.

Any Township employee who resumes coverage shall repay, on a prorated basis, any monies received from the Township which represent an advance payment for a period of time during which coverage is resumed.

Any Township employee who wishes to resume health care benefit coverage shall file a declaration revoking the waiver in writing on forms prescribed by the Department of Administration.

After revocation of a waiver, all payments to any Township employee pursuant to this section shall cease concurrently with the effective date of such employee's reenrollment in any Township health care benefits plan.