RULES AND REGULATIONS REVIEW COMMITTEE
3.	DEVELOP RECOMMENDATION TO THE BOARD REGARDING DIRECTORS’ PARTICIPATION IN DISTRICT HEALTH INSURANCE PLANS
Meeting Date:		March 20, 2009
From:		Darby W. Fuerst,
		General Manager
Prepared By:		Cynthia Schmidlin

SUMMARY: At its January 14, 2009 Meeting, the Administrative Committee reviewed a staff report on the establishment of rules regarding Directors’ participation in the Districts’ health insurance plans. There are two available health plan options. The first is offered by the Association of California Water Agencies (ACWA). The second is offered by the Laborers Health and Welfare Plan of Northern California (Laborers).

The staff report determined that, under the provisions of the ACWA plans, Director participation in the medical plan would be voluntary, but coverage under the dental and vision plans would be required. More importantly, the District would be required to pay the same share of premium costs for Directors as it pays for active employees, with no reimbursement by Directors allowed. The District share of premiums has historically been 90% to 100% of medical insurance and 100% of dental and vision insurance. Those premiums currently range from $515.40 to $1,409.18 for medical coverage, $30.23 to $116.07 for dental coverage, and $17.01 for vision coverage.

Under the provision of the Laborers plan, however, participation by Board members is optional and reimbursement of premium expenses allowed. The Laborers Special Plan III covers health, dental, and vision insurance, with a small life insurance component. The premium is currently a composite rate of $741 per month for all subscribers, no matter how many dependents they have. An additional $21 administrative fee is charged and paid by the District for non-union members.

Administrative Committee members expressed preference for voluntary participation and reimbursement to the District of any premium costs incurred. The Committee referred the issue to Rules and Regulations Committee in order to develop a policy on this issue. The following is the text of a draft policy:

DIRECTORS’ PARTICIPATION IN DISTRICT HEALTH INSURANCE PLANS

Members of the Monterey Peninsula Water Management District Board of Directors may elect to enroll themselves and eligible dependents in the Laborers Special Plan III to receive health coverage for medical, dental, and vision care.

Premium costs incurred by the District for each participating Director and/or dependents should be reimbursed to the District on or before the 5^th day of each month of coverage.

Enrollment shall be terminated in the event that premiums become more than 30 days delinquent, or the District no longer has a participation agreement with the Laborers Health and Welfare Plan of Northern California to cover regular employees.

RECOMMENDATION: Recommend to the Board the adoption of an ordinance that codifies the draft policy, as approved by this Committee.

EXHIBITS

None

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