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'Spousal carve out' could affect insurance for City of Memphis employees

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A plan called the "spousal carve out" has changed employees ability to put their husband or wife on their plan, if the spouse can get insurance through their employer. (Photo Source: WMC Action News 5) A plan called the "spousal carve out" has changed employees ability to put their husband or wife on their plan, if the spouse can get insurance through their employer. (Photo Source: WMC Action News 5)
MEMPHIS, TN -

(WMC) - The new city budget will impact many city employee and their families due to the changes on who can be included on the city's insurance plan.

A plan called the "spousal carve out" has changed employees ability to put their husband or wife on their plan, if the spouse can get insurance through their employer.

The insurance may possibly cost more, and those getting dropped by the city need to take measures now to make sure that no one has a gap in their insurance when this takes effect January 1, 2015.

This does not apply to children; they will be still be covered by the city. It also does not apply to spouses who do not have another insurance option. Those people will still be covered, though you will have to show proof and sign documents saying that you do not have coverage through an employer.

City of Memphis has around 10,000 employees and retirees enrolled in its medical plan. Half of those people cover their spouses on their city plan.

The administration believes this change alone will reduce the city's claims cost by around $3 million in 2015.

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