Common use of Payment in Lieu of Medical Insurance Clause in Contracts

Payment in Lieu of Medical Insurance. Any certificated employee who is eligible for Board medical insurance and elects to decline coverage shall be eligible for the following: a. An employee eligible for family coverage may decline Board medical insurance and receive $2,000 divided into two equal semi-annual payments. b. An employee eligible for single coverage may decline Board medical insurance coverage and receive $1,000 divided into two equal semi-annual payments. c. District employees who are married to each other are not eligible for payment in lieu of medical coverage if both employees are covered under the District’s plan. d. For purposes of this provision a year shall run from January 1 to December 31. e. Any employee electing to take this insurance option shall receive the first payment within one month of the end of the first six months of participation (July 31) and shall receive the second payment within one month of the end of the second six months of participation (by January 31). f. The payment shall be made automatically to the employee without the requirement of notification to the Board of an employee’s desire to participate in these options; however, should the employee re-enroll in the insurance program during the annual open enrollment period, the payment-in-lieu shall be forfeited. g. The above payments in lieu of medical insurance shall not be subject to STRS contributions but shall be subject to all other applicable taxes. h. Married employees may only participate in the insurance tier that is the least expensive for the District, as determined by the Board.