Common use of MEDICAL BENEFIT WAIVER Clause in Contracts

MEDICAL BENEFIT WAIVER. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through another non-District employer-sponsored or association medical plan, the employee may choose to waive the employee’s right to the District’s medical insurance. No cash payments will be made to the employee for waiving coverage. The employee must provide proof of their coverage under another health plan or will be automatically enrolled in the lowest cost plan offered by the District. Employees qualifying to waive District medical insurance shall receive a $700/month Health Benefit Allowance that may be used for other benefits provided under the Flexible Benefits Plan, which currently consists of the health flexible spending arrangement (Health FSA), dependent care flexible spending arrangement (DC FSA), and voluntary life insurance for the employee (not for a spouse or dependent) up to the maximum policy limit, subject to the following conditions: a) Employees may not allocate more than $500 per year of District provided Health Benefit Allowance to their Health FSA account. b) Although there is no specific limit on the amount of District provided Health Benefit Allowance that can be allocated to the DC FSA, the maximum annual amount that can be reimbursed under the DC FSA is $5,000 per year. This means that any District provided Health Benefit Allowance that an employee allocates to their DC FSA would reduce the amount the employee can contribute to the DC FSA through salary reduction, so that the maximum of $5,000 is not exceeded. c) Any unallocated amount of District-provided Health Benefit Allowance for employees that waive the District’s group health coverage shall be forfeited at the end of the calendar year.