Retiree Medical Insurance

Retiree Medical Benefit Opt-Out Plan

On February 7, 2017, the City Council approved a Limited Time Optional Opt-Out plan for eligible retirees who wish to receive a proportional share of ($6.6M) funds deposited into a Health Reimbursement Arrangement (HRA) for use by the retiree, their spouse and dependents.

The staff report (PDF)presented to the City Council on February 7, 2017 explains the program, opt-out funds available per retiree and the process for opting out. Listed below is the sliding scale of Opt-Out funds available to eligible retirees:

What is an HRA?

In general, a Health Reimbursement Arrangement (HRA) is an account solely funded by an employer that allows employees and retirees to obtain reimbursement for IRS approved medical expenses during employment and post-employment.

For those retirees who elect to participate in the Opt-Out Plan, the City will establish an HRA account for the retiree with the beginning HRA account balance equal to the retiree's opt-out amount. The retiree, his / her spouse and dependents as defined by IRS regulations (whether or not there was spousal / dependent coverage benefits) can be reimbursed from the HRA for a very wide variety of medical expenses (see FAQ below). The balance in the retiree's HRA will be carried over each year and remain available for medical expense reimbursements for the retiree, his / her spouse, and dependents until the retiree’s HRA's funds are expended, which could occur after the death of the retiree.

The following "Frequently Asked Questions" (FAQ) document is provided in response to questions the City has received regarding HRAs:


2017 Medical Benefit Plan Comparison (2017 open enrollment information) (PDF)

As required by law, the following summary benefit comparison is posted below regarding the medical benefit plans for 2017 (PDF).
Summary Benefit Comparison ~ Health Insurance Plan Year 2017

For additional questions, please call Ember Buckman in the Human Resources Department at 530-542-6050.