ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 97
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 8 - Risk Management (Concluded)
Health Insurance
The City provides life and health insurance benefits to all eligible regular full-time
employees. The program also provides limited coverage for dental and prescription drugs.
Employees pay only for dependent coverage under the health benefit program. Premiums
are deducted from the participating employee's biweekly pay.
The insurance plan provides life insurance coverage in the amount of $20,000 for eligible
employees and $50,000 for division and department heads with an additional amount of
coverage for accidental death and dismemberment.
The amount of coverage is reduced to $10,000 for all employees at retirement. Coverage
is further reduced to $6,500 upon achieving age 65 and $5,000 at age 70. Accidental death
and dismemberment coverage terminates after age 70. The life insurance coverage is
funded through the purchase of a group insurance policy by the City.
The City's health insurance plan is purchased through the pool as mentioned above. This
change to a group insurance pool became effective October 1, 2003. Retirees and
terminated employees are eligible to participate in the health insurance plan at their own
expense. In order to control costs, the City has joined a Preferred Provider Organization
(PPO).
Employees are encouraged to use participating providers, which are covered 80% under
the plan or, they may choose their own provider. Coverage for expenses rendered by
nonparticipating providers is limited to 40%, with the employee paying 60% co-pay.
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