Common use of Opting Out Clause in Contracts

Opting Out. An employee can elect to opt out of all coverage, Prescription, Dental or Vision. (An employee cannot elect Prescription coverage without Hospitalization, but can elect Hospitalization without Prescription.) Any employee eligible for health insurance paid for by the Board of Education who elects not to enroll and/or participate in the hospitalization and prescription program will be paid a cash bonus of $500.00 per year. Each employee electing the cash bonus plan must declare his/her intent not to participate and remain off the plan for one full year from September 1 through August 31. The cash payment will be made with the second payroll in September each year for the prior year. To be eligible for payment, the employee must provide proof of coverage elsewhere. (This payment does not apply to spouses who work within the District). If an eligible employee elects to opt out one year, he/she may rejoin the group insurance coverage in accordance with open enrollment provisions in the employee benefit plan. Advanced written notice must be provided to the Treasurer. Also, any eligible employee who elects to opt out but later loses coverage under another plan will be eligible to apply for enrollment in the district’s insurance plans in accordance with the special enrollment provisions in the employee benefit plan (the cash bonus will not be paid). In the event that the law imposes a penalty that adversely effects the district resulting in no significant savings, the CLASS and the Board agree to open the contract to address Article XV Group Health and Life Insurance Opting out section.