PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE Clause Samples
The "Payment in Lieu of Health Insurance Coverage" clause allows employees who opt out of employer-provided health insurance to receive a monetary payment instead. Typically, this applies to employees who already have alternative health coverage, such as through a spouse or another source, and the payment amount is often a fixed sum or a percentage of the employer's insurance premium savings. This clause provides flexibility for employees while helping employers manage benefits costs and avoid duplicative coverage.
PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE. Any active unit member who is eligible, but chooses not to participate in the medical/hospitalization insurance package, who has health insurance coverage from another source and who signs a waiver from the Employer, shall be paid an annual amount of One Thousand Eight Hundred and No/100 ($1,800) Dollars. The annual payment will be paid in equal amounts over twenty-six (26) pay dates in a calendar year. An employee who elects Payment in Lieu of Health Insurance Coverage after January 1 of any year, shall be paid a pro- rata amount of the $1,800 in the same manner as described in the previous sentence with the amount calculated based on the number of full months remaining in the calendar year after the date of the election (example: employee hired June 15, will be entitled to $900 for that year effective July 1). An employee who subsequently loses medical/hospitalization coverage from another source shall have the right to obtain medical/hospitalization coverage from the Employer as provided in this Agreement at the earliest date possible after written notice to the Personnel Director and approval by same. Said employee shall be entitled to a pro-rata payment in lieu of health insurance to the date the employee becomes covered by the Employer's medical/hospitalization plan calculated in the same manner as described above for new hires. Any employee who elects Payment in Lieu of Health Insurance Coverage may elect at the same time to be enrolled in dental and/or vision coverage. The amount the employee will receive for Payment in Lieu of Health Insurance will be determined by deducting the cost of the dental and/or vision coverage from $1,800 (example: On January 1 employee elects family dental coverage for which the annual cost is $1,200, the employee will be paid $600 cash in lieu of health coverage). For elections made after January 1 of any year, the Payment in Lieu of Health Insurance and the cost of the dental and/or vision coverage shall be pro-rated. With respect to couples who both currently work for Bay County in which one receives the Payment in Lieu of the Health Insurance Coverage (“Payment”) and the other receives Health Insurance Coverage from the County, this Payment provision shall continue, but no new couples working for Bay County after the effective date of this agreement shall be eligible for such payment.
PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE. The following schedule is available for bargaining unit members that can provide proof of alternate medical insurance coverage:
PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE. If employees voluntarily cease health insurance coverage provided by this Agreement, they shall be entitled to an annual lump sum payment of one thousand two hundred dollars ($1,200.00). Such payment shall be made in the first full pay period in December.
PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE. Employees who are covered by another hospital/medical insurance plan may elect to receive fifty dollars ($50) per week in lieu of participation in the Clinton Township hospital/medical insurance plan. Employees electing this benefit must meet the requirements and agree to the stipulations as described in Appendix “A” attached to this agreement and complete the form “Waiver of Medical Insurance” attached to this contract as Appendix “B”.
PAYMENT IN LIEU OF HEALTH INSURANCE COVERAGE. During the life of this Agreement, the School District shall reserve the right to offer eligible full-time employees the opportunity to receive payments in lieu of health care insurance benefit coverage. If the School District offers this opportunity, it will adopt an IRS Code section 125 Plan, to protect employee contributions and benefits consistent with and at all times subject to, applicable statutes and regulations, as they may be amended from time to time. In such event an employee may elect to withdraw from the hospitalization and medical insurance program provided by this Agreement and in lieu thereof, receive a sum equal to Thirty Five (35%) Percentum of the amount that the school District would have paid each month to provide these benefits to that employee, for each month that the employee does not participate in the aforesaid insurance program. At the employee’s option, this money will be placed in a tax sheltered annuity chosen by the employee and available through the School District. The parties expressly agree that to the extent, if any, that any such section 125 Plan is deemed invalid or out of compliance with applicable laws and/or regulations, this Section likewise be deemed invalid. The remaining terms and conditions of this Agreement shall, however, remain in full force and effect, as if the invalid provision had never been included therein. Employees will be given the opportunity to take part in the above outlined program each year of the Agreement by June 1. Employees that are participating in the above plan may withdraw from the plan in any year of the Agreement by notifying the District in writing by June 1 in order to become effective the following July 1 of each year and resume their participation in the District hospitalization and medical insurance programs provided by this Agreement.