Common use of Declining Coverage Clause in Contracts

Declining Coverage. If the employee declines the Employer’s medical insurance plan, and can provide proof of outside medical coverage, the Employer will contribute $150 per month to the employee as an alternate health coverage allowance. Part-time employees will receive a reduced benefit. For regular part-time employees working at least 30 hours per week, the Employer will contribute 75% of the benefit for regular full-time employees. For regular part-time employees working at least 20 hours per week, the Employer will contribute 50% of the benefit for regular full- time employees. Proof of coverage will be required annually during the Employer’s open enrollment period. This alternate health coverage allowance will be considered taxable income and subject to appropriate income taxes, as required by law.