Horry County Council to vote on county employee retiree health insurance changes [The Sun News, Myrtle Beach, S.C.] - Insurance News | InsuranceNewsNet

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June 15, 2012 Newswires
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Horry County Council to vote on county employee retiree health insurance changes [The Sun News, Myrtle Beach, S.C.]

Brad Dickerson, The Sun News, Myrtle Beach, S.C.
By Brad Dickerson, The Sun News, Myrtle Beach, S.C.
McClatchy-Tribune Information Services

June 16--The Horry County Council will consider a resolution at Tuesday's meeting to make changes to the retiree health insurance plan, a measure that would affect the almost 2,000 county employees currently on the payroll.

This recommendation comes from the county administration committee and calls for retiree health insurance coverage through the county to cease after Medicare becomes the retiree's primary insurance, and start funding a monthly contribution to a health reimbursement arrangement account.

That account would allow the retiree to purchase a Medicare supplement plan or use the money for qualifying medical costs. The amount of the monthly contribution would be based on the rates of available Medicare plans.

A monthly contribution of $150 for a retiree qualifying for a 100 percent subsidy would begin in 2013. That amount would be subject to an annual increase of no more than 3 percent per year.

Also, the administration committee recommends grandfathering existing plan provisions, except as amended with the Medicare change, for all employees who are either 62 years old or have 23 years of county service as of Dec. 31. Of the 1,971 active employees, an estimated 271 will be grandfathered.

The other 1,700 non-grandfathered employees would have a minimum retirement age of 62 and the 75 percent of premium paid by the county for 23 to 27 years of service would be taken away.

For employees rehired before June 30, 2011 who had previously worked a minimum of 60 consecutive months as a full-time regular employee, they will be allowed to participate in the retiree health insurance plan.

These recommendations would bring retirement benefits back to newer hires.

In December 2010, the County Council approved a resolution discontinuing Horry County's payments toward retiree health insurance premiums for those employees hired July 1, 2011 and thereafter. The resolution cited current and projected budget constraints as the reason for the change.

In 1994, Horry County began paying for health insurance for retiring employees. Regular retirees with 28 years of service or more get 100 percent of their premium paid by the county. Those with 23 to 27 years get 75 percent of the premium taken care of, while those with 15 to 22 years have half of the premium paid.

Contact BRAD DICKERSON at 626-0301.

___

(c)2012 The Sun News (Myrtle Beach, S.C.)

Visit The Sun News (Myrtle Beach, S.C.) at www.thesunnews.com

Distributed by MCT Information Services

Wordcount:  397

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