Employee Insurance

Regular full-time employees are eligible to enroll in the City’s group health insurance plan effective the first of the month following 30 calendar days of employment. 

The City will pay the entire cost of individual employee coverage for the basic HMO plan offered to eligible City employees. The City will also pay a portion of the dependent coverage premium, if applicable, for all eligible full-time employees who carry dependent coverage, the amount of which may change from time to time based on City Council authorization. Any remaining premium will be the responsibility of the employee.

The employee portion of the premium is deducted from an employee’s paycheck during the first two paychecks of each month. 

Insurance Opt-Out

Employees eligible for, but electing to waive participation in the City’s group health insurance due to alternate insurance coverage, shall be provided a monthly opt-out incentive, the amount to be determined by City Council. Approval of this incentive is contingent on proof of qualifying alternate coverage provided to Human Resources and completion of the City’s opt-out certification form on an annual basis during the new-hire and benefits open-enrollment period.

Retiree Insurance

The City will make insurance available to retirees as required by Chapter 112.0801, Florida Statutes. The City may contribute toward the premium for retiree health insurance coverage as determined by City Council. To qualify for this contribution, an employee must have been hired by the City prior to January 1, 2011, and must have at least 8 years of continuous current service. There is no City contribution towards retiree health insurance for employees hired on or after January 1, 2011.

Currently, the City contributes 50% toward an eligible retiree’s individual premium if they remain covered on the City’s group health insurance after leaving employment. Retirees who carry dependent coverage are responsible to pay the entire premium. 

Effective April 1, 2021, the City contribution will cease when a retiree reaches normal Medicare age for all employees retiring after this date. Upon reaching Medicare age, the City will contribute 50% toward single coverage for retirees enrolling in the Medicare supplemental plan selected by the City. If an employee reaching Medicare age carries dependent coverage, the spouse may remain on the City’s group plan until they reach Medicare age. Dependents on the City’s group plan must exit the group plan upon reaching Medicare age.

Detailed information about the benefit plans offered, the City’s current contribution toward health insurance coverage, and the opt-out incentive is provided in the Human Resources Employee Benefits section of the City of Melbourne website on the employee-only web page under Human Resources Information and Forms for Employees.

FMLA Leave and continuation of Health Insurance

When an employee is out of work due to an absence covered by the Family and Medical Leave Act (FMLA), the employee’s health insurance coverage is maintained by the City. Employees who are in an unpaid status must pay their share of the health insurance premium, if they have a plan that includes an employee contribution or family coverage, on a monthly basis to maintain the insurance coverage. Insurance payments should be submitted to the Revenue Division. The City’s obligation to maintain health benefits stops when:

• An employee informs the City of the intent not to return to work at the end of the leave period for purposes other than retirement; or
• An employee fails to return to work when the FMLA entitlement is exhausted and all leave accruals have been exhausted; or
• An employee’s premium contribution is past due and attempts to recover have not been successful.

Under certain circumstances, the City may make efforts to recover premiums paid to maintain health insurance coverage for an employee who fails to return to work following leave.

COBRA and continuation of Health Insurance

The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides eligible employees and family the opportunity to continue health insurance coverage under the City’s group health plan if certain circumstances are met. When a "qualifying event" occurs that causes an employee to lose health insurance coverage, the City will send the employee information on COBRA eligibility. “Qualifying events” include resignation, dismissal from employment, death of an employee, reduction in hours, a leave of absence, divorce or legal separation, entitlement to Medicare, or when a dependent child no longer meets eligibility requirements.