2014 Health Information - Retirees

This information applies to City of Modesto retired employees only.

The City of Modesto invited you in September to attend an informational meeting on potential alternatives to your current sick leave program. During these informational meetings we discussed a sick leave conversion “buyout” option for retirees to take funds and purchase health insurance plans from the open market, continuing the unblending of pre-65 retiree insurance premiums from active insurance premiums, and changing to a three tier contribution structure. These meetings were structured to provide you information on these potential changes and to discuss alternatives should some or all of the changes be approved by the labor groups. However, we were not able to obtain a consensus from the labor groups; therefore, the City will be maintaining the current structure and will not offer the buyout for the upcoming plan year.


Health Insurance Rates


Health Insurance Information (PRE-65 Plans)


Health Insurance Information (POST-65 Plans)


Health Savings Account (HSA)

A Health Savings Account (HSA) is only available to employees enrolled in a HDHP medical plan (Anthem or Kaiser HDHP). A HSA is a tax-favored account that allows you to set aside funds to save and pay for qualified medical expenses incurred by you, your spouse, and any of your qualified dependents. The HSA is an individually-owned account that earns interest and the funds are carried over, without limit, from year to year.

The City's HSA is administered through Wells Fargo. Wells Fargo has a $2.00 per month administrative fee which is automatically deducted from your account.



Dental/Vision Plans


Chiropractic/Mental Health Plans

  • Chiropractic Health Coverage

    The chiropractic coverage for employees/retirees is now integrated in your medical plan. For more details please refer to the Benefit Plan summaries of the medical coverage. Employees who are enrolled in Kaiser HDHP or opt-out of medical coverage do not have chiropractic.

  • Mental Health Coverage

    The mental health coverage for employees/retirees is now integrated in your medical plan. For more details refer to the Benefit Plan Summaries of the medical coverage. Employees who opt out of medical coverage do not have mental health coverage through City of Modesto.


Health Care Reform

On March 23, 2010, President Obama signed into law the health care reform bill, the Patient Protection and Affordable Care Act. This legislation, along with the Health Care and Education Reconciliation Act of 2010, makes sweeping changes to the U.S. health care system. These changes will be implemented over the next several years. Below is an overview of the key reform provisions that have been implemented. If you would like more information on the Health Care Reform please visit their website at www.healthcare.gov.

  • Exchange Notice

    Effective January 1, 2014 insurance will be made available through the California Health Insurance Marketplace.

  • Extended Coverage for Young Adults

    Effective January 1, 2011, children are now eligible for coverage up to the age of 26 regardless of marriage status, financial dependency, or student status.

  • Prohibition on Lifetime and Annual Limits

    The new health care reform law contains a provision stating that group health plans cannot establish a lifetime or annual limit on the dollar value of benefits. Plans are permitted to place lifetime and annual limits on specific covered benefits that are not considered essential benefits under the new health reform law.

  • Preexisting Condition Exclusions

    Effective January 1, 2011, a preexisting condition limitation cannot be applied to any enrollee who is under age 19. Starting plan year January 1, 2014, preexisting condition limitations will be prohibited for all plans and all covered individuals.

  • Increase Tax on Withdrawal from HSAs

    The health care reform law will increase the additional tax on HSA withdrawals prior to age 65 that are not used for qualifed medical expenses from 10 to 20 percent.

  • HSA Clarification for Overage Dependents

    The Health Savings Account has different guidelines as it relates to newly eligible over age dependents. These dependent children in question who are now eligible for coverage under the health plan may not be considered tax dependents for HSA distributions.