Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Benefit Surcharges topic
No spam. Unsubscribe anytime.
Board asks staff to research smoking and spousal surcharges; no immediate rate change
Summary
Committee reviewed nicotine and spousal premium surcharges and asked staff to research local government practice and school board standards before considering changes; members signaled willingness to give advance notice if surcharges are increased.
Sumner County’s Self Insurance Board discussed two benefit surcharges — a nicotine/smoking surcharge and a spousal surcharge — and directed staff to collect comparative data from the state plan and Board of Education before recommending any changes.
Staff explained the county charges $25 per pay period for nicotine use per adult participant and a $50 per pay period spousal surcharge when a spouse does not have other employer‑sponsored coverage. Board members said the spousal surcharge is the source of the most complaints because its application depends on whether a spouse’s employer offers insurance, creating perceived inconsistency.
Members discussed enforcement and testing. Benefits staff said the county currently uses an annual nicotine test, and expressed concern about people temporarily quitting to pass tests; the legal director cautioned about random testing and advised focusing on price incentives and clear administrative rules. Several members suggested giving employees at least a full plan year’s notice before any surcharge changes to allow people time to adapt.
The committee unanimously approved a staff assignment to research how the state plan, school board and other local governments set smoking and spousal surcharge levels and to return with options for next fiscal year — aiming to avoid sudden mid‑year changes.
