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Council debates health-insurance start date and COBRA reimbursement options
Summary
Council considered three options for new hires' health coverage start dates — first day of the next month, 60 days after hire, or reimbursing COBRA premiums — and did not adopt a change; a motion to set start date to the first of the next month failed for lack of a second.
Council discussed when city health insurance should become effective for new hires and whether the city should reimburse COBRA premiums until city coverage begins. Law Director Costa Mastros outlined three primary options: coverage effective the first day of the month after hire, coverage at 60 days, or reimbursing an employee’s COBRA premium until the city plan becomes effective. Finance staff (represented in discussion by council reference) had advised caution about assuming early claim risk.
Mr. Mayo moved to adopt the policy making coverage effective the first day of the month after hire, but the motion received no second and therefore did not proceed. Supporters of the COBRA-reimbursement approach argued it limits the city's exposure to early large claims while allowing employees to obtain coverage if they experience a health event in the interim. "If they don't have a claim for that, they can elect COBRA at the end of the 60 days," Mr. Johnson said in explaining common practice; Mr. McManamon said the COBRA-reimbursement option reduces the city's immediate exposure to expensive claims.
