Fiscal Note
Under current practice, when an employee terminates from City employment, City-paid health insurance coverage lapses at the end of the first or second full month following the date of termination, depending upon the effective dates of each specific case. This ordinance amendment would extend existing City-paid health coverage for an additional one to two months beyond current practice in cases of termination due to layoff resulting from lack of work or funding, thus providing a total of three months of post-layoff coverage. During 2009, the employer cost of health insurance is approximately $475 per month for each single coverage plan and $1,150 per month for each family coverage plan. Based on current expectations, the cost of this benefit change as it relates to anticipated City layoffs in January of 2009 will be between $3,000 and $13,000 depending on the number of actual layoffs and types of coverage currently in place for the individual employees laid off. It is assumed that the cost of this provision will be borne by the existing budgets of the agencies in which the eventual layoffs occur.
Title
Creating Section 3.38(1)(h)5. and amending Section 3.54(26) of the Madison General Ordinances to provide for the payment of health insurance premiums for up to 3 months after the month of lay-off of city employees.
Body
DRAFTER'S ANALYSIS: This ordinance provides for the payment of health insurance premiums for up to 3 months after the month of the lay-off of city employees, unless the employee obtains other health insurance.
***********************************************************************************
The Common Council of the City of Madison do hereby ordain as follows:
1. Paragraph 5. of Subdivision (h) entitled "Health Insurance and Benefits" of Subsection (1) of Section 3.38 entitled "Nonrepresented Transit Division Employees" of the Madison General Ordinances is created to read as follows:
"5. The City will continue to make contributions toward the cost of health insurance coverage for any employee in a permanent position that is subject to layoff as a result of a lack of work or funding provided the employee has no other comparable coverage. The City contribution shall continue for three (3) consecutive months following the effective month of the layoff in the same manner and at the same rate as provided prior to the layoff. The City may terminate contributions prior to the end of the three (3) month period if the affected individual obtains comparable health insurance coverage through another source. This ordinance applies to all City employees covered by health insurance provided by the City on or after January 1, 2009."
2. Subsection (26) entitled "Health Insurance" of Section 3.54 entitled "Compensation Plan" of the Madison General Ordinances is amended to read as follows:
"(26) Health Insurance.
(a) Employees registered in domestic partnerships under Section 3.23(11), Madison General Ordinances, will be eligible for family health insurance coverage when such coverage is permitted under the terms of the Wisconsin Public Employers' Group Health Insurance Plan.
(b) The City will continue to make contributions toward the cost of health insurance coverage for any employee in a permanent position that is subject to layoff as a result of a lack of work or funding provided the employee has no other comparable coverage. The City contribution shall continue for three (3) consecutive months following the effective month of the layoff in the same manner and at the same rate as provided prior to the layoff. The City may terminate contributions prior to the end of the three (3) month period if the affected individual obtains comparable health insurance coverage through another source. This ordinance applies to all City employees covered by health insurance provided by the City on or after January 1, 2009."