COVERAGE END DATES AND PROCEDURES
Advise any employee who is laid off of the following GIC coverage end dates:
Date employment ends GIC coverage end date
January 1-31 February 28
February 1-29 March 31
March 1-31 April 30
April 1-30 May 31
May 1-31 June 30
June 1-30 July 31
July 1-31 August 31
August 1-31 September 30
September 1-30 October 31
October 1-31 November 30
November 1-30 December 31
December 1-31 January 31
You are responsible for collecting the employee’s share of GIC premiums through the coverage end date.
When an employee is laid off, municipalities must advise the employee of their right to continue group insurance coverage. All persons terminating service must be given a copy of the COBRA notice at the time of their leaving state service. Advise the employee that health coverage ends at the end of the month following the month the employee ends municipal service.
LAYOFF PROCEDURES – EXCEPT FOR SCHOOL DEPT. EMPLOYEES WHO PREPAY FOR THE SUMMER
Complete the following procedures:
- Complete
Municipal Insurance Enrollment and Change Form
(Form-1MUN) on behalf of the employee. Check termination box 9. For the termination reason, enter “layoff”. For the termination date, enter the last day of work. You are responsible for collecting the employee’s share of GIC premiums through the coverage end date. - Photocopy the completed
Municipal Insurance Enrollment and Change Form
(Form-1MUN) and file it in the employee’s personnel file.
- Send the original
Municipal Insurance Enrollment and Change Form
(Form-1MUN) to the GIC.
LAYOFF FOR SCHOOL DEPT. EMPLOYEES WHO PREPAY THEIR GIC PREMIUMS THROUGH THE SUMMER (TEACHERS)
When a school department employee advises you that he or she is leaving municipal service at the end of the school year and has prepaid his/her health premiums through the summer:
- Advise the employee that his/her health coverage ends at the end of the month following the month the employee ends municipal service. You are responsible for collecting the employee’s share of GIC premiums through the coverage end date.
- Complete
Municipal Insurance Enrollment and Change Form
(Form-1MUN) on behalf of the employee. Check termination box 9. For the termination reason, enter “layoff”. For the termination date, enter the last day of work in the School Department Employees only section (excluding vacation/personal/sick time) and enter the premium paid through date for all premiums paid through the summer months. GIC coverage will end on the premium paid through date.
- Photocopy the completed
Municipal Insurance Enrollment and Change Form
(Form-1MUN) and file it in the employee’s personnel file.
- Send the original
Municipal Insurance Enrollment and Change Form
(Form-1MUN) to the GIC.
The employee’s health options depend on his or her length of municipal service. See the corresponding options and procedures below. Options are listed in order of recommended selection.
BENEFIT OPTIONS: Layoff - Less Than 10 years of MUNICIPAL Service
Option 1: Keep GIC health coverage for 39-weeks.
Benefit: Allows the employee to stay in the same health plan with the same group benefit
Drawback: Employee pays 100% of the premium (no municipal contribution). At the end of the 39-weeks, the former employee can switch to COBRA for the remaining 9 months of health coverage, for a total of 18 months coverage.
Procedure: If the employee elects 39-week coverage, have the employee check the 39-week coverage block on
Municipal Insurance Enrollment and Change Form
(Form-1MUN) and indicate his/her health selections and sign it before sending the form to the GIC.
Option 2: Keep GIC health coverage under COBRA.
Benefit: Allows the employee to stay in the same plan with the same group benefit.
Drawback: Employee pays 100% of the full-cost premium plus 2% for administration (no Commonwealth contribution). Maximum coverage length – 18 months.
Procedure: If the employee elects COBRA, complete the following:
- Check the COBRA block on
Municipal Insurance Enrollment and Change Form
(Form-1MUN).
- Photocopy the
Municipal Insurance Enrollment and Change Form
(Form-1MUN) and file in the employee’s personnel file.
- Send original
Municipal Insurance Enrollment and Change Form
(Form-1MUN) to the GIC.
- Give the employee a
COBRA
application (available on the GIC’s website). Let the employee know that he/she will also receive a COBRA application at home. Advise the employee that although he/she has 60 days to elect COBRA coverage, the coverage is effective the first day of the month following the coverage end date. The longer the employee waits to send in the application, the more he/she will owe in retroactive premiums. Instruct the employee to complete and return the COBRA application to the GIC.
Option 3: Commonwealth Health Connector coverage for Massachusetts residents:
Benefit: A choice of health insurance options with different benefits and prices. Depending on which plan you choose, your monthly premium with the Health Connector could be lower than other coverage options. Unlike COBRA coverage, Health Connector coverage does not have a maximum coverage period; you can continue coverage as long as you pay your premiums on time.
Drawback: Benefits may not be the same as the coverage you had through the GIC. If the employee enrolls in Health Connector coverage, he/she is waiving his/her right to elect health insurance under the GIC’s COBRA or conversion options.
Procedure: Instruct the employee to contact the Health Connector for information and enrollment: MAhealthconnector.org; 1-877-623-6765
Option 4: Convert to Non-Group health coverage with current plan(s).
Benefit: Can keep coverage beyond 18 months.
Drawback: Rates and benefits almost always lower than GIC plan coverage.
Procedure:
- Check non-group conversion on
Municipal Insurance Enrollment and Change Form
(Form-1MUN) before sending it to the GIC.
- Instruct the employee to contact their health plan for a non-group conversion application, benefit changes, procedures and costs.
BENEFIT OPTIONS: Layoff - TEN or more years MUNICIPAL service
Instruct the employee to contact their retirement board to confirm retirement eligibility. Employee must be vested and must keep retirement monies in the system. If the employee is under age 55 with ten years, but less than 20 years of municipal service, or, if the employee is age 55 or over but deferring their retirement pensions, we recommend that the employee elect Deferred Retirement coverage. Under this option, the employee must keep his/her money in the retirement system until he/she retires. When the employee applies for their pension (at retirement) he/she should notify the GIC in order to pick up health coverage. If the employee will not receive health coverage elsewhere, he/she can keep health coverage at the full cost premium until retirement.
Deferred Retiree Coverage:
Keep health insurance paying 100% of the premium until retirement. Advise the employee that if he or she gets coverage elsewhere before retirement, he/she may cancel health coverage.
Procedure: Instruct the employee to check the deferred retiree block on
Municipal Insurance Enrollment and Change Form
(Form-1MUN), indicate his/her health selection and sign it before returning it the GIC and include a letter from the Municipal Retirement Board indicating that the employee has elected to keep their money in the retirement system until retirement.
For the other alternatives, see the benefits, drawbacks, and procedures under Less Than TEN Years of MUNICIPAL Service.
RETIREMENT
If the employee has 20 or more years of municipal service at any age or ten or more years of municipal service age 55 or over and wishes to retire and collect a monthly pension, see the Retirement section for procedures.
This information provided by the Group Insurance Commission.
