HomeMy WebLinkAboutBPW-07-19-06-04 Benefit Plan/No Tobacco
RESOLUTION BPW 07-19-06-04
A RESOLUTION PROVIDING AN ECONOMIC INCENTIVE TO
CITY OF CARMEL EMPLOYEE HEALTH BENEFIT PLAN PARTICIPANTS WHO
DO NOT USE TOBACCO PRODUCTS
WHEREAS, the City of Carmel wishes to promote a variety of wellness
initiatives to enhance its employees' quality of life and to control rising health insurance
costs; and
WHEREAS, studies consistently show that the regular use of tobacco products
has a negative impact on the health of users, and, in the case of smokers, on the health of
those around them; and
. WHEREAS, the negative health effect of tobacco use translates to higher
insurance costs, which are shared by all of the City's insurance plan participants; and
WHEREAS, the City wishes to structure employee contributions to its Employee
Health Benefit Plan in a manner calculated to discourage the use of tobacco and minimize
tobacco-related illnesses; and
WHEREAS, through Public Law 136-2006, the Indiana legislature authorized
employers to provide financial incentives intended to reduce tobacco use.
NOW, THEREFORE, BE IT RESOLVED by the Carmel Board of Public Works
and Safety as follows:
I. The forgoing recitals are incorporated herein by this reference.
2. For the purposes of this program, "use" shall mean consistently consume any and/or
all tobacco products more than two (2) days per week.
J. Effective August 1, 2006, the City shall establish a HIPAA-qualified bona fide
wellness program through which a $10 surcharge ("Surcharge") will be applied to the
bi-weekly health insurance contributions of each City employee. However, this
Surcharge will be waived in its entirety for those employees:
a) who do not use tobacco product(s); and
b) whose participating family members do not use tobacco product(s).
In compliance with HIPAA requirements, the Surcharge may also be waived for
individuals who meet certain established requirements, which will be distributed to
employees on or before August 1,2006.
Only one Surcharge will be applied per family unit, no matter how many members of that
family unit use tobacco.
The Surcharge will not begin to be applied until January I, 2007, in order to give
employees ample notice of its implementation and opportunity to enroll in a smoking
cessation program.
CITY OF CARMEL, INDIANA
By and through its Board of Public Works and Safety
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