Common use of Employee Insurance Waiver (Opt Out Clause in Contracts

Employee Insurance Waiver (Opt Out. A fulltime Township employee eligible for health insurance may elect to waive (opt out) of this benefit if the employee’s spouse has health insurance and prescription insurance available through the spouse’s employer and the employee provides proof of such coverage. The Township employee would be eligible to receive a payment equal to 25% of the monthly premium charged by the insurance company for medical insurance levels for which the employee would qualify, if the employees elected coverage under the Township health insurance. The employee must also complete a Verification of Alternate Medical and Prescription Coverage Form annually. The employee must provide proof of the spouse’s medical insurance by the 1st of each month. Monthly proof of insurance may be provided by evidence of a current payroll stub showing the deduction for the premium for health insurance or a verification from the spouse’s employer on letterhead. Either form of proof must be provided to the Fiscal Office by the 1st of each month. An employee may be reinstated to coverage under the Township insurance only through an IRS qualifying event or during the annual open enrollment period. Any HRA or HSA monies will be pro-rated for deposit into said account. Only in the event of re-enrolling in the Township insurance plan during the funding year related to the bio-metric screening, would the employee/spouse be entitled to any wellness incentive. Employees electing a waiver are still entitled to select dental and/or vision coverage with the Township. An employee percentage (%) premium will be deducted from the employee’s paycheck (providing current employees are required to pay a contribution to this coverage). Employees selecting the waiver will receive their taxable incentive in the 2nd full pay period of each month.