Cost Savings Opportunities. Each Employee covered by the Town’s Medical/Prescription Drug Plan shall have the option, during the Town’s annual open-enrollment period, to reject coverage under such Plan and receive in lieu of such coverage a payment equal to one-third (1/3) of the annual premium cost for the least expensive health plan offered by the Town at the level of coverage in which the Employee is eligible at the time of the annual open enrollment (Employee only, Employee plus one, family etc.) Such payment in lieu of coverage shall be available in each Plan Year in which the Employee elects to reject such coverage during the annual open-enrollment period. Each Employee who rejects coverage under the Town-sponsored Plan as provided in the preceding paragraph may, at his or her option during the Town’s next annual open-enrollment period, apply to reinstate coverage the Plan previously rejected provided the Employee authorizes the Town to resume deducting the Employee’s premium share for such coverage from his or her regular pay. If the Employee applies because he or she has lost coverage due to the death of a spouse, divorce or legal separation or termination of spouse’s employment, the Employee will be reinstated on the first day of the month following the approval of the application. Employees who once rejected such coverage and apply for reinstatement of coverage under the Plan shall not have to prove insurability.
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