Read Gentex-Spousal-Eligibility.pdf text version

To: From: Re: Date: Reissued: In order to stay competitive and preserve jobs, Gentex Corporation is examining all of its operating costs. We recently reviewed our health plan and compared it to programs offered by other employers, locally and nationally. We learned that many employers maintain something called a "special spousal eligibility rule." This rule, also known as the "spousal mandate" or "spousal carveout rule," says that employees' spouses must elect medical coverage through their own employers when it's available. Our research through the Society of Human Resource Management found that 72% of businesses nationally use spousal eligibility rules. The majority of large employers in West Michigan do, too. We have also seen an increasing number of Gentex employees who are enrolling their families in Gentex insurance because their spouse can no longer carry family benefits. This puts a disproportionate burden on our insurance costs because we have been one of the last employers that will insure employees' families with no stipulations. In order to rebalance insurance costs among West Michigan employers, Gentex has decided to adopt the spousal eligibility rule. It will become effective as of January 1, 2010, as follows: Your Spouse If your spouse works fulltime and is eligible for medical coverage through his or her employer, your spouse will not be eligible for medical and prescription drug coverage under the Gentex Corporation Employee Welfare Benefit Plan (Medical, Prescription, and Dental Plans). Dependent Children You can continue to cover your dependent children on the Gentex health plan even though your spouse is no longer eligible for coverage Certificate of Credible Coverage Spouses who are affected by this change will receive a Certificate of Credible Coverage, which means they are eligible for entrance into their group health plan without waiting periods or limitations. This "window" of opportunity is limited to 30 days following the effective date of January 1, 2010. We recommend that spouses who are affected by the change should be proactive and contact their Human Resources department. Verification of spousal coverage during open enrollment We will be verifying spousal coverage during open enrollment and will rely on you to answer honestly and assist us with this process. Penalties will apply in the event that it is later discovered that your spouse was not eligible. The purpose of this memo is to give you advance notice of this important change. More information will be provided during the open enrollment period. In the meantime, if you have any questions concerning this new rule, please contact Human Resources.

M E M O R A N D U M All Employees Participating in the Gentex Corporation Employee Welfare Benefit Plan Bruce Los, VicePresident of Human Resources New Spousal Eligibility Rule for 2010 July 22, 2009 October 28, 2009


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