HomeMy WebLinkAboutResolution No. 2010-105 - Amend the City of Huntington Beach t1
Council/Agency Meeting Held: d
Deferred/Continued to:
`1-Approved Co ditiona ly Ap roved ❑ Denied S i C*06 Signat e
Council Meeting Date: December 20, 2010 Department ID Number: HR 10-024
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Administrator
PREPARED BY: Michele Carr, Director of Human Resources
SUBJECT: Adopt Resolution No. 2010-105 adopting and amending the City of
Huntington Beach Flexible Benefit Plan to comply with the Federal
Affordable Care Act of 2010
Statement of Issue: In compliance with certain provisions of the Affordable Care Act of
2010 (the Patient Protection and Affordable Care Act and the Health Care and Education
Reconciliation Act) the City of Huntington Beach is required to adopt a resolution amending
its flexible benefit plan.
Financial Impact: N/A
Recommended Action: Motion to:
Adopt Resolution No. 2010-105, "A Resolution of the City Council of the City of Huntington
Beach Adopting Amendment to the City of Huntington Beach Flexible Benefit Plan in
Conformance with 2010 Health Care Reform and Other Provisions Contained in the
Affordable Care Act of 2010."
Alternative Action(s):
Motion to: Not adopt Resolution No. 2010-105, A Resolution Amending the City of Huntington
Beach Flexible Benefit Plan.
HB -521- Item 17. - 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 12/20/2010 DEPARTMENT ID NUMBER: HR 10-024
Analysis:
In compliance with certain provisions of the Affordable Care Act of 2010 (the Patient
Protection and Affordable Care Act and the Health Care and Education Reconciliation Act)
the City of Huntington Beach is required to adopt a resolution amending its flexible benefit
plan incorporating the federal regulatory changes.
The plan amendment (the Amendment) ensures the City's compliance with recently enacted
federal legislation (the Patient Protection and Affordable Care Act and the Health Care and
Education Reconciliation Act) as required by federal regulation.
The summary of changes include:
■ Discontinuance of plan reimbursements for non-prescription (over the counter)
medicines/drugs
® Increasing the dependent age to 26
The compliance amendments do not result in any additional costs to the City of
Huntington Beach, nor do the amendments confer any additional benefits to
participating employees.
Environmental Status: N/A
Strategic Plan Goal: Maintain financial viability and our reserves
Attachment(s):
Description
1 Resolution No. 2010-105, "A Resolution of the City Council of the City of
Huntington Beach Adopting Amendment to the City of Huntington Beach Flexible
Benefit Plan in Conformance with 2010 Health Care Reform and Other Provisions
Contained in the Affordable Care Act of 2010," including Exhibit A: City of
Huntington Beach Flexible Benefit Plan: 2010 Health Care Reform and Other
Provisions Amendment .
Item 17. - 2 HB -522-
ATTACHMENT # 1
RESOLUTION NO. 2010-105
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADOPTING
AMENDMENT TO THE CITY OF HUNTINGTON BEACH
FLEXIBLE BENEFIT PLAN IN CONFORMANCE WITH
2010 HEALTH CARE REFORM AND OTHER PROVISIONS
CONTAINED IN THE AFFORDABLE CARE ACT OF 2010
WHEREAS,the City of Huntington Beach (the Employer)has an established Flexible
Benefit Plan that is subject to federal and state regulations; and
Certain provisions of the federal Affordable Care Act of 2010 (the Patient Protection and
Affordable Care Act and the Health Care and Education Reconciliation Act)require
modifications to the existing Flexible Benefit Plan;and
In order to ensure the City of Huntington Beach retains its legal conformance to required
federal regulations,the current Flexible Benefit Plan must be amended to reflect recent
regulatory changes;
NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby
resolve as follows:
That the Amendment to the City of Huntington Beach Flexible Benefit Plan is hereby
approved and the City Manager(or his designee)is the authorized representative and is
authorized to direct, and execute, and deliver to the Administrator of the Plan(TRI-AD) one or
more counterparts of the amendment.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 20th day of December ,20 10 .
or
REVIE ND APPROVED: APPROVED AS TO FORM:
Cit anger ,w City Attorney
EXHIBIT "A" INI N AP
City of Huntington Beach Flexible
Benefit Plan
e or of Human Resources
10-2741/55736
Exhibit "A" Resolution No. 2010-105
City of Huntington Beach Flexible Benefit Plan
2010 HEALTH CARE REFORM&OTHER PROVISIONS AMENDMENT
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment.The Employer adopts this Amendment to the City of Huntington Beach Flexible
Benefit Plan("Plan")to reflect certain provisions of the Affordable Care Act of 2010(the Patient Protection and Affordable
Care Act and the Health Care and Education Reconciliation Act);Children's Health Insurance Program Reauthorization Act of
2009(State Children's Health Insurance Program(SCHJP));the Genetic Information Nondiscrimination Act(GINA);and the
Mental Health Panty and Addiction Equity Act(MHPAEA). The sponsor intends this Amendment as good faith compliance
with the requirements of these provisions.This Amendment shall be effective on or after the date the Employer elects in
Section 2.1 below.
1.2 Supersession of inconsistent provisions.This Amendment shall supersede the provisions of the Plan to the extent those
provisions are inconsistent with the provisions of this Amendment.
1.3 Multiple.adopting employers.If more than one employer has adopted the Plan,the main employer shall adopt this
amendment on behalf of all adopting employers and such provisions shall apply to all adopting employers.
1.4 Construction.Except as otherwise provided in this Amendment,any reference to"Section"in this Amendment refers only to
sections within this Amendment,and is not a reference to the Plan.The Article and Section numbering in this Amendment is
solely for purposes of this Amendment,and does not relate to any Plan article,section or other numbering designations.
ARTICLE II
ELECTIONS
2.1 Effective Dates The effective dates are indicated in each Article below.
ARTICLE III
MISCELLANEOUS PROVISIONS
3.1 Change in Reimbursement.Effective January 1,2011,the Plan's definition of"Medical Expenses"under the Health Care
Reimbursement Arrangement or Health Flexible Spending Account is amended by the addition of the following:
Notwithstanding anything in the Plan to the contrary,a Participant may not be reimbursed for the cost of any medicine or drug
that is not"prescribed"within the meaning of Code Section 106(f)or is not insulin.In addition,only medicine or drugs
considered to be prescription drugs under Code Section 106(f)(not"over-the-counter"drugs obtained under prescription)shall
be able to be purchased by debit and/or credit cards issued to be used in conjunction with the Plan.
3.2 Dependent.Effective as of the date the group health plan(s)provide such provision but no earlier than March 30,2010,the
Plan's definition of"Dependent"is amended by the addition of the following:
"Dependent"shall include any child of a Participant who is covered under an Insurance Contract,as defined in the Contract,
or under the Health Flexible Spending Account as allowed by reason of the Affordable Care Act.
A Participant's"Child"includes his natural child,(stepchild or foster child if the group health plan(s)so provide)adopted
child,or a child placed with the Participant for adoption. An Employee's Child will be an eligible Dependent until reaching
the limiting age of 26,without regard to student status,marital status,financial dependency or residency status with the
Participant or any other person.When the child reaches the applicable limiting age,coverage will end at the end of the
calendar year.
The phrase"placed for adoption"refers to a child whom the Participant intends to adopt,whether or not the adoption has
become final,who has not attained the age of 18 as of the date of such placement for adoption.The term"placed"means the
assumption and retention by such Participant of a legal obligation for total or partial support of the child in anticipation of
adoption of the child.The child must be available for adoption and the legal process must have commenced.
3.3 Dependent.Effective as of the date the group health plan(s)provide such provision but no earlier than March 30,2010,the
Plan's Change in Status provisions are amended by the addition of the following:
Notwithstanding anything in this Section to the contrary,the gain of eligibility or change in eligibility of a child up to the end
Page I of 2 9110
Exhibit "A" Resolution No. 2010-105
of the year in which a child attains age 26,as allowed under Code Sections 105(b)and 106 and IRS Notice 2010-38,shall
qualify as a change in status.
ARTICLE IV
SPECIAL ENROLLMENT RIGHTS
4.1 Special Enrollment Rights.Effective April 1,2009,the Plan is amended to allow for special enrollments rights in the event
a Participant or his or her eligible Dependent(1)loses coverage under Medicaid or a state child health program,or(2)
becomes eligible for state assistance with respect to paying his or her contributions to the Plan,as follows:
Special enrollment rights. A Participant may change an election for accident or health coverage during a Plan Year and
make a new election that corresponds with the special enrollment rights provided in Code Section 9801(f),including those
authorized under the provisions of the Children's Health Insurance Program Reauthorization Act of 2009(State Children's
Health Insurance Program(SCRIP));provided that such Participant meets the sixty(60)day notice requirement imposed by
Code Section 9801(f)(or such longer period as may be permitted by the Plan and communicated to Participants).Such
change shall take place on a prospective basis,unless otherwise required by Code Section 9801(f)to be retroactive.
ARTICLE V
GENETIC INFORMATION NONDISCRIMINATION ACT
5.1 Effective Date.This Section is effective for Plan Years beginning on and after the first day of the Plan Year beginning on or
after May 21,2009.
5.2 Genetic Information Nondiscrimination Act.Notwithstanding anything in the Plan to the contrary,the Plan will comply
with the Genetic Information Nondiscrimination Act.
ARTICLE VI
MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT
6.1 Effective Date.This Section is effective for Plan Years beginning on and after the first day of the Plan Year beginning on or
after October 9,2009.
6.2 Mental Health Parity and Addition Equity Act. Notwithstanding anything in the Plan to the contrary,the Plan will
comply with the Mental Health Parity and Addiction Equity Act and ERISA Section 712.
This amendment has been executed this 20th day of December 2010.
Name of E toyer: City of Huntington Beach
By:
gna e
Fred Wilson, City Manager
Print Name/Title
APPROVED AS TO FORM JENNIFER MCGRATH,City Attorney
e,Qe L/9/io/o
By Paul D'Alessanam
Assistant City Attorney
Page 2 of 2 9/10
Exhibit "A" Resolution No. 2010-105
SUMMARY OF MATERIAL MODIFICATIONS
for the
City of Huntington Beach Flexible Benefit Plan
I
INTRODUCTION
This is a Summary of Material Modifications regarding the City of Huntington Beach Flexible Benefit Plan
("Plan").This is merely a summary of the most important changes to the Plan and information contained in the
Summary Plan Description("SPD")previously provided to you.It supplements and amends that SPD so you should
retain a copy of this document with your copy of the SPD.If you have any questions,contact the Administrator.If
there is any discrepancy between the terms of the Plan,as modified,and this Summary of Material Modifications,the
provisions of the Plan will control.
II
SUMMARY OF CHANGES
Medical expenses:
Effective January 1,2011,you may not request reimbursement of"over-the-counter"drugs unless the drug is insulin
or the drug is prescribed for you for treatment of a medical condition.If applicable,you cannot use debit cards to
obtain'over-the-counter"drugs even with a prescription.
Definition of"child":
Effective when your group health plan(s)allows such provisions,you may be reimbursed for insurance coverage or
medical expenses for any child until the end of the calendar year in which the child reaches age 26.A child is a
natural child,adopted child,or a child placed with you for adoption(stepchild or foster child if the group health
plan(s)so provides).If a child gains or regains eligibility due to these new rules,that qualifies as a change in status
to change coverage.
Page 1 of 1 9/10
Exhibit "A" Resolution No. 2010-105
CERTIFICATE OF ADOPTING RESOLUTION
The undersigned authorized representative of City of Huntington Beach(the Employer)hereby certifies that
the following resolutions were duly adopted by Employer on Decemher 20 , 2010.and that such
resolutions have not been modified or rescinded as of the date hereof;
RESOLVED,that the Amendment to the City of Huntington Beach Flexible Benefit Plan(the Amendment)is
hereby approved and adopted,and that an authorized representative of the Employer is hereby authorized and
directed to execute and deliver to the Administrator of the Plan one or more counterparts of the amendment.
The undersigned further certifies that attached hereto is a copy of the Amendment approved and adopted in
the foregoing resolution.
Date: Dec 20 2010
Signed:
F ed Wilson, City Manager
(Print Name/Title)
APPROVED AS TO FORM
JENNIFER MCGRATH,City Attorney
By Paul D'Alessan&o /f`
Assistant City Attomey
Page 1 of 1 9/10
Res. No. 2010-105
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on December 20, 2010 by the following vote:
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer
NOES: None
ABSENT: Boardman
ABSTAIN: None
16 Clerk and ex-offici Jerk of'the
City Council of the City of
Huntington Beach, California