Public Employee Rights and Benefits

ORS 243.303
Local government authority to make health care insurance coverage available to retired officers and employees, spouses and children

(1)

As used in this section:

(a)

“Health care” means medical, surgical, hospital or any other remedial care recognized by state law and related services and supplies and includes comparable benefits for persons who rely on spiritual means of healing.

(b)

“Local government” means any city, county, school district or other special district in this state.

(c)

“Retired employee” means a former officer or employee of a local government who is retired for service or disability, and who received or is receiving retirement benefits, under the Public Employees Retirement System or any other retirement system or plan applicable to officers and employees of the local government.

(2)

The governing body of any local government that contracts for or otherwise makes available health care insurance coverage for officers and employees of the local government shall, insofar as and to the extent possible, make that coverage available for any retired employee of the local government who elects within 60 days after the effective date of retirement to participate in that coverage and, at the option of the retired employee, for the spouse of the retired employee and any unmarried children under 18 years of age. The health care insurance coverage shall be made available for a retired employee until the retired employee becomes eligible for federal Medicare coverage, for the spouse of a retired employee until the spouse becomes eligible for federal Medicare coverage and for a child until the child arrives at majority, and may, but need not, be made available thereafter. The governing body may prescribe reasonable terms and conditions of eligibility and coverage, not inconsistent with this section, for making the health care insurance coverage available. The local government may pay none of the cost of making that coverage available or may agree, by collective bargaining agreement or otherwise, to pay part or all of that cost.

(3)

A local government and a health care insurer may not create a group solely for the purpose of rating or of establishing a premium for health care insurance coverage of retired employees and their dependents that is separate from the group for health care insurance coverage of officers and employees of the local government and their dependents. Nothing in this subsection prevents a local government from allocating rates or premiums differently among retired employees and their dependents and officers and employees of the local government and their dependents once the rating or premium is established. [1981 c.240 §1; 1985 c.224 §1; 2001 c.604 §1; 2003 c.62 §1; 2003 c.694 §1]
Note: 243.303 (Local government authority to make health care insurance coverage available to retired officers and employees, spouses and children) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Notes of Decisions

Local governments have obligation to make health care insurance coverage available to retired employees. Doyle v. City of Medford, 347 Or 564, 227 P3d 683 (2010)

Local government is excused from obligation to make health care insurance coverage available to retired employees if local government demonstrates, through use of facts, that making coverage available is unduly burdensome. Doyle v. City of Medford, 347 Or 564, 227 P3d 683 (2010). But see Doyle v. City of Medford, 256 Or App 625, 303 P3d 346 (2013), aff’d 356 Or 336, 337 P3d 797 (2014)

This section does not create property interest that is protected by Due Process Clause of 14th Amendment. Doyle v. City of Medford, 606 F3d 667 (9th Cir. 2010)

This provision does not provide for private right of action for damages against local government that fails to make available health care insurance coverage. Doyle v. City of Medford, 256 Or App 625, 303 P3d 346 (2013), aff’d 356 Or 336, 337 P3d 797 (2014)

Where city has statutory duty to provide health care insurance coverage to city employees, and statute does not include private right of action for enforcement of statutory duty, court must determine whether judicially created common-law right of action to compel city to provide coverage is consistent with statute. Doyle v. City of Medford, 356 Or 336, 337 P3d 797 (2014)

Source

Last accessed
May 30, 2023

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