H3. Res. 6170, Personnel Policy ChangeCITY OF
KALISPELL
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Human Resources
201 1st Avenue East, PO Box 1997
Kalispell, MT 59903
Phone: (406) 758-7757
dmichel@kalispell.com
www.kalispell.com
REPORT TO: Doug Russell, City Manager
FROM: Denise Michel, Human Resources Director
MEETING DATE: November 6, 2023
RE: Resolution to amend the Personnel Policy Handbook related to Medical/Health
Insurance Coverage Policy
BACKGROUND:
The City of Kalispell offers medical health insurance coverage through a pool administered by Montana
Municipal Interlocal Authority (MMIA). Recently there was an important change to our city's health
insurance policy that will impact our Medicare -eligible retirees. Effective January 1, 2024, Medicare -
eligible retirees will no longer be allowed to remain on the City's health insurance plan. A change was
recommended and approved by the MMIA Board of Directors to terminate medical insurance coverage
for retirees on the plan once they are Medicare eligible, as of January 1, 2024.
This decision was made after a thorough cost analysis and in consideration of the financial implication
for the self -funded pool. As healthcare and prescription costs continue to rise, it has become
increasingly challenging to sustain the inclusion of Medicare -eligible retirees in the group health
insurance plan. Though these changes may seem alarming initially, MMIA research indicates most, if
not all, Medicare -eligible participants will find annual savings from this initiative.
Here are the key details of this change:
• The change will take effect on January 1, 2024. From this date forward, Medicare -eligible
retirees will no longer be eligible for health insurance coverage under our City's health insurance
plan.
• Continuation of dental insurance will still be offered to our Medicare -eligible retirees.
• Retirees will have the opportunity to elect an MMIA Medicare Advantage Plan offered
through Blue Cross Blue Shield as well as the other options offered through various carriers in
the marketplace. These plans are designed to coordinate better with Medicare, whereas the
MMIA plan was not designed to coordinate with Medicare.
• The City and MMIA remain committed to assisting our affected retirees during this transition.
We will continue to provide resources, information, and support to help them with the process.
It's important to note that retirees who are not Medicare -eligible will be able to continue their health
insurance coverage.
The City of Kalispell's Personnel Policies Handbook will require an update to Section 30-2,
Medical/Health Insurance Coverage. To bring the policy in compliance with the plan changes, some
language was removed and updated to reflect the current requirements.
RECOMMENDATION: Approve Resolution 6170, amending the City of Kalispell Personnel Policies
Handbook by revising Section 30-2, Medical/Health Insurance Coverage.
ATTACHMENTS: Resolution 6170
Previous Medical/Health Insurance Coverage - redlined
Revised Medical/Health Insurance Coverage
RESOLUTION NO. 6170
A RESOLUTION AMENDING RESOLUTION 5917, THE CITY OF KALISPELL PERSONNEL
POLICIES HANDBOOK, BY REVISING SECTION 30-2, MEDICAL/HEALTH INSURANCE
COVERAGE.
WHEREAS, it is in the best interests of the citizens of the City of Kalispell, and employees of the City
of Kalispell, that all policies relating to persons working for the City of Kalispell be
placed and expressed in a Personnel Policies Handbook; and
WHEREAS, on May 2, 1994, the City Council adopted Resolution No. 4150, first adopting a
Personnel Policies Handbook applicable to all City employees; and
WHEREAS, since then the Personnel Policy Handbook has been updated by amendment a number of
times and was last revised on March 6, 2023, when the City Council adopted Resolution
No. 6123; and
WHEREAS, the City of Kalispell offers medical health insurance coverage through a pool
administered by Montana Municipal Interlocal Authority (MMIA); and
WHEREAS, the MMIA Board of Directors has approved a recommendation to terminate medical
insurance coverage for retirees on the health insurance plan once they are Medicare
eligible, as of January 1, 2024; and
WHEREAS, the City Council finds that the proposed changes attached hereto as Exhibit "A", are
appropriate and necessary revisions to the City of Kalispell Personnel Policy Handbook.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION 1. That the Personnel Policies Handbook established by Resolution No. 5917 is
hereby amended by revising Section 30-2, Medical/Health Insurance Coverage,
as referred to in Exhibit "A", and is fully incorporated by this reference into the
official Personnel Policies Handbook of the City of Kalispell, Montana.
SECTION 2. This Resolution shall become effective immediately upon its passage by the City
Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 6TH DAY OF NOVEMBER 2023.
Mark Johnson
Mayor
ATTEST:
Aimee Bnmckhorst, CMC
City Clerk
EXHIBIT A
SECTION 30-2
SUBJECT: MEDICAL/HEALTH INSURANCE COVERAGE
PURPOSE:
To provide an outline of medical/health benefits provided by the City of Kalispell.
II. STATEMENT OF POLICY:
The City of Kalispell provides group health and dental insurance plans for all City
employees and their families. The family of an employee is defined as those individuals
who are legal dependents of the employee, either as a legal spouse or as a dependent
child of the o„. pley-ee less than twextwen , -six (26) years of age. The employee
may file an affidavit of common law marriage if the spousal relationship has not been
established by a license issued by a state government.
Supplemental plans may be added and/or deleted based on the needs of the City and its
employees. Eligibility Requirements:
a. Regular Full -Time
b. Regular Part -Time
c. Retirees that are not Medicare eligible (retiree pays entire premium)
d. Employees who have been terminated may be eligible to remain with the City's
group plan under certain conditions as outlined under COBRA benefits.
III. City Contribution:
For regular full-time employees, the City shall determine the insurance carrier and
contribute the amount determined by the employee's status each month toward Health
Insurance Coverage. When an employee maffieTof adds./loses ems dependent, -
Regular part-time
employees shall be entitled to the pro-rata contribution to the cost of group health
insurance.
IV. Coverage:
Group planbr^Tdocuments are available in the Human Resource's Office which
expla1w,REovides detailed insurance coverage offered by the plan. The Human
Resources Pile to &1of Elocignee is the liaise between employees andthe insurance
eempany and is available to help employees with thei insufa e pFeb ems.department
and the insurance carrier are available to assist you with insurance questions.
When an employee marries or adds/loses a dependent, you must notify Human
Resources within 31 days of the event if the change impacts your health insurance
coverage (adding or dropping your family members to the insurance plan). Plan
changes can be made at open enrollment or if a qualifying event has taken place.
V. When Coverage Begins:
Coverage for new employees begins following 30 calendar days of employment.
VI. When Coverage Ends:
If an employee terminates bete+:@ *4@ 1&4 4 toe R4a+it4 between the I" and 15' of the
month, coverage is extended to the 344,,301h of the month of termination. Employees
who terminate after the 15`h of the month will have coverage through the 30th 30`h
of the following meat , „„' month, unless the employee elects to remain insured
under subitem b. of this part.
a. Employees who retire and are not Medicare eligible have the option to remain in
the City's group plan, provided they pay the current full premium each month.
A retiree's dependents may continue coverage following death. Effective January
1, 2024, Medicare eligible retirees may not remain on the plan, but spouses of
Medicare eligible retirees may remain on the plan until they become Medicare
eligible.
b. Continuation Coverage under the Consolidated Omnibus Budget Reconciliation
Act of 1986 (COBRA). Terminating employees may have the option of
"Continuation Coverage," provided the termination is not the result of
misconduct. Spouses and dependent children are allowed to stay on group
coverage.
c. With the exception of the Family Medical Leave Act (FMLA), employees may
elect to continue their total existing insurance coverage, at employee expense,
while on leave of absence (Leave without pay).
d. Employees using FMLA shall receive health insurance coverage according to the
terms and conditions that are in effect during the time the employee is using such
leave.
EFFECTIVE: May 3, 1994
REVISED: Resolution #4832 - September 15, 2003; Resolution #5468 - January 3, 2011
LAST REVISED: Resolution #5917, April 15, 2019, Revised: Resolution # 6170,
November 6, 2023
SECTION 30-2
SUBJECT: MEDICAL/HEALTH INSURANCE COVERAGE
PURPOSE:
To provide an outline of medical/health benefits provided by the City of Kalispell.
II. STATEMENT OF POLICY:
The City of Kalispell provides group health and dental insurance plans for all City
employees and their families. The family of an employee is defined as those individuals
who are legal dependents of the employee, either as a legal spouse or as a dependent
child less than twenty-six (26) years of age. The employee may file an affidavit of
common law marriage if the spousal relationship has not been established by a license
issued by a state government.
Supplemental plans may be added and/or deleted based on the needs of the City and
its employees. Eligibility Requirements:
a. Regular Full -Time
b. Regular Part -Time
c. Retirees that are not Medicare eligible (retiree pays entire premium)
d. Employees who have been terminated may be eligible to remain with the City's
group plan under certain conditions as outlined under COBRA benefits.
III. City Contribution:
For regular full-time employees, the City shall determine the insurance carrier and
contribute the amount determined by the employee's status each month toward Health
Insurance Coverage. Regular part-time employees shall be entitled to the pro-rata
contribution to the cost of group health insurance.
IV. Coverage:
Group plan documents are available in the Human Resource's Office which provides
detailed insurance coverage offered by the plan. The Human Resources department
and the insurance carrier are available to assist you with insurance questions.
When an employee marries or adds/loses a dependent, you must notify Human
Resources within 31 days of the event if the change impacts your health insurance
coverage (adding or dropping your family members to the insurance plan). Plan
changes can be made at open enrollment or if a qualifying event has taken place.
V. When Coverage Begins:
Coverage for new employees begins following 30 calendar days of employment.
VI. When Coverage Ends:
If an employee terminates between the I" and 15' of the month, coverage is extended
to the 30' of the month of termination. Employees who terminate after the 15' of the
month will have coverage through the 30' of the following month unless the employee
elects to remain insured under subitem b. of this part.
a. Employees who retire and are not Medicare eligible have the option to remain
in the City's group plan, provided they pay the current full premium each
month. A retiree's dependents may continue coverage following death.
Effective January 1, 2024, Medicare eligible retirees may not remain on the
plan, but spouses of Medicare eligible retirees may remain on the plan until
they become Medicare eligible.
b. Continuation Coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1986 (COBRA). Terminating employees may have the
option of "Continuation Coverage," provided the termination is not the result
of misconduct. Spouses and dependent children are allowed to stay on group
coverage.
c. With the exception of the Family Medical Leave Act (FMLA), employees may
elect to continue their total existing insurance coverage, at employee expense,
while on leave of absence (Leave without pay).
d. Employees using FMLA shall receive health insurance coverage according to
the terms and conditions that are in effect during the time the employee is using
such leave.
EFFECTIVE: May 3, 1994
REVISED: Resolution #4832 - September 15, 2003; Resolution #5468 - January 3, 2011
LAST REVISED: Resolution #5917, April 15, 2019, Revised: Resolution #