A: The Smart Savings legislation provides that the families of non-union employees may have only one health insurance policy per family.

Q: When does the Smart Savings legislation become effective?

A: This law takes effect on January 1, 2007. Click here to read the legislation.

Q: Who is affected by the legislation?

A: All families that are currently eligible for family health insurance coverage through a non-union county employee or retiree and another county employee or retiree will be affected by this legislation.

Q: Are Nassau Community College and the Nassau Health Care Corporation non-union employees and non-union retirees affected by this law as well?

A: Yes. If a non-union employee or non-union retiree is eligible for coverage under the family health insurance plan of an employee of Nassau Community College, the Nassau Health Care Corporation or a union employee or union retiree, then he or she will not receive either a family health insurance policy or an individual health insurance policy unless there is demonstration that his or her spouse has declined health insurance coverage.

Q: Will this new law result in a reduction in health benefits to those persons affected?

A: No, the law maintains the same level of benefits to the employees and their families.

Q. What happens if my spouse is the policy holder and he or she dies or we get a divorce?

A. In the event that the policy holder dies or the couple gets a divorce, upon notice to the County, the spouse will receive coverage through a policy in his or her own name.

Q: What is the Health Insurance Buy Back Program and how will it work?

A: Nassau County provides all of its union and non-union employees the option to decline the health insurance and to receive a “buyback” of their coverage in the amount of $2,000 for a family plan. This legislation extends the buyback right to retirees who are impacted by the legislation. Thus, each non-union spouse or non-union retiree who was receiving a second family health policy will instead receive a $2,000 payment from the County that can be used to pay for any non-covered medical expenses including co-payments and deductibles.

Q: How will I receive my Health Insurance Buy Back reimbursement?

A: Non-union employees will have the option to either receive the $2,000 buyback reimbursement as a direct payment taxable as income, or to place the monies in a flexible spending account whereby the money would not be taxed but could only be used to cover medical costs not reimbursable under the family health insurance plan.

Q: As a non-union retiree married to another county employee or retiree, am I able to take advantage of the Health Insurance Buy Back Program?

A: The Smart Savings law allows retirees affected by the legislation to partake in the Health Insurance Buy Back Program. However, please note, retirees are not eligible for flexible spending account under Federal tax law, and therefore affected non-union retirees, must receive their Health Insurance Buy Back reimbursement as a direct payment taxable as income.

Q: What happens if the Health Insurance Buy Back Program amount of $2,000 is not enough to cover my out-of-pocket medical expenses?

A: Where a non-union employee who was previously covered by a second family health insurance policy has to pay more in out-of-pocket medical expenses than he or she would have with the duplicate policy, the County will reimburse the individual for any costs that exceed the gross buy back amount of $2,000 if those costs would otherwise have been covered by the second family policy.

Q. How do I enroll in the flexible spending account for medical expenses?

A. Enrollment forms for the flexible spending account will be mailed to eligible employees during the open enrollment period. The forms must be filled out and returned to the health benefits office by the end of the year in order to qualify for an account during the following year.

Q. Is there a limit on how much I can put in my flexible spending account?

A. Yes. All Nassau County employees may contribute up to $5000 to their flexible spending account. Employees eligible to put their buy back amount into a flexible spending account may contribute up to $7,000, if they choose to contribute their buy back.

Q: How do I get reimbursed?

A. If your out-of-pocket medical expenses for a single year exceed $2,000, you may submit copies of your receipts for co-pays or the Explanation of Benefits (“EOB”) you receive from the insurance company to the Nassau County health benefits department. Once it is determined that the submitted receipts and EOBs reflects that your out-of-pocket costs exceed $2,000, and would have been reimbursed by a second health insurance policy, you will be reimbursed for those amounts in excess of the $2,000.

Smart Savings Reimbursment Form
Smart Savings Reimbursment Procedures

Q: May a non-union employee or non-union retiree opt-out of the Smart Savings law?

A: No. Participation is mandatory for all eligible non-union employees and non-union retirees married to other county employees.

Q: What happens if employees or retirees eligible for coverage under the same family health insurance plan fail to take any action in compliance with this law?

A: If, within 30 days of January 1, 2007, the effective date of this law, eligible persons fail to designate which employee or retiree will be the policy holder for their single family health insurance plan, the spouse with the earlier birthday in the calendar year will be deemed the policy holder.

Q. If I have a dependant who is not my spouse’s dependant, and my spouse has a dependant who is not my dependant, can we keep two family health insurance policies?

A. Probably not. Stepchildren of the enrollee can be covered by his or her health insurance policy, so in most instances, the entire family can be covered by a single family plan. Furthermore, where the dependant is not a child of the employee, upon proof of dependency, the child can be covered by the spouse of the responsible employee. In these situations, each individual case will be evaluated, and you should consult with the County’s health benefits department to confirm eligibility for coverage of all dependants.

Q. I am married to another Nassau County employee and we do not have any children. Can we get two individual health insurance policies instead of one family policy?

A. Yes. You may take two individual health insurance policies instead of one family policy. However, you will not receive the buy back or the reimbursement in excess of $2,000.

If you have any further questions please contact Nassau County Comptroller’s Office Health Benefits Unit at comptrollerhealthbenefits@nassaucountyny.gov or (516) 571-2369.