Hallsville R-IV


P 4541 Election of Stipend in Lieu of Health Insurance

The Board recognizes that a District employee who qualifies to receive Medicare health insurance benefits may decide to purchase Medicare supplemental coverage from an outside source, rather than retain the employee's District-offered individual health insurance coverage. Thus, an employee who makes this totally voluntary election shall be entitled to receive a monetary stipend in lieu of retaining individual health insurance coverage through the District.

This monetary stipend shall be subject to all required federal and state withholdings/deductions. The stipend shall be in the amount of the employee's Medicare and Medicare supplement cost not to exceed $175.00 per month. Employees should be aware that this stipend is not in the full amount of the District's cost of individual health insurance coverage. The stipend shall be paid to the employee as follows: equal installments per pay period.

Employees who elect this option shall follow all enrollment procedures set forth by the District. Employees who initially elect to receive a stipend but who thereafter decide to return to District-offered individual health insurance coverage must comply with all enrollment requirements under the District's then-existing program of health insurance. Employees should be aware that the District's health insurance program might require the employee to reenroll during an open-enrollment period. Thus, employees should plan accordingly and seek guidance from the District's employee benefits official well in advance of any such decision.

The District reserves the right to alter and/or discontinue this stipend option at any time. If the District chooses to discontinue this stipend option, it will do so in conjunction with an open-enrollment period so that affected individuals may seek District-offered coverage.

Board Approved Date: December, 2003
Last Updated: December 2003