Opt-Out Incentive

Overview

If you do not need health insurance coverage through the State Group Health Insurance program, you may be eligible for up to a $2,000 Opt-Out Incentive.

You are eligible for the Opt-Out Incentive if you:

  • Are eligible for the WRS Benefits Package. Employees eligible for the Graduate/Short-Term Academic Staff Benefits Package are not eligible for the incentive.
  • Are eligible for the employer premium contribution to your health insurance. Crafts workers are eligible for the employer premium contribution to health insurance; therefore, may be eligible for the opt-out incentive.
  • Do not receive State Group Health Insurance through a parent or spouse through another State agency (such as UW Hospital & Clinics)
  • In 2015, were eligible for the employer premium contribution to your health insurance and were enrolled in State Group Health Insurance. This provision does not apply to crafts workers.

Health insurance coverage through a parent or spouse employed by a local government entity that does not offer State Group Health Insurance (administered by ETF) does not disqualify you for the Health Insurance Opt-Out Incentive.

The $2,000 Opt-Out Incentive is prorated. If elected, it is paid for months you are eligible for the employer contribution towards a health insurance premium. The incentive is provided on two paychecks each month, distributed evenly over 24 pay periods a year.

The Opt-Out Incentive election does not carry over from year to year. It must be re-elected each year during Annual Benefits Enrollment.

Important Considerations

  1. Impact on Sick Leave Credits. Unused sick leave can provide a valuable benefit. If you retire, or if  you die while an employee, unused sick leave is converted into credits to pay for your health insurance or health insurance for your surviving spouse/dependents (if you are covered under the health insurance program). If you select the Health Opt-Out Incentive, your unused sick leave credits have no value until/unless you re-enroll in the health insurance program in the future.
  2. Re-enroll in Health Insurance. You may re-enroll during the year if you have a qualifying life event (such as marriage, birth of a child, loss of other coverage). The $2,000 Opt-Out Incentive is prorated based on the number of months remaining in the calendar year.
  3. Enrollment in Other Benefit Plans. If you opt out of health insurance, you will not be eligible for Uniform Dental. However you will be eligible for Preventive Dental. During the Annual Benefits Enrollment (ABE) period, you may elect a supplemental dental plan (even if you opt-out of health insurance).
  4. Taxable. The Opt-Out Incentive is taxable.

How to Enroll in the Health Opt-Out Incentive

If you enroll through the MyUW portal:

  • Select Opt-Out Incentive, if you do not need health insurance coverage through the Universities of Wisconsin and meet the eligibility requirements for the Opt-Out Incentive.
  • Select Waive if you do not need health insurance coverage through the Universities of Wisconsin and do not meet the eligibility requirements the Opt-Out Incentive. If you select Waive, you will not receive the Opt-Out Incentive.

If you are unable to use the MyUW portal to enroll, complete a paper Health Insurance Application/Change Form (see Forms & Resources below) and submit it to your benefits contact. Complete the following sections of the application: Section 1 (Applicant Information), Section 2 (Spouse Information, if applicable) and Section 12 (to elect Opt-Out Incentive).

You must complete your enrollment either through the My UW portal or by submitting paper applications within 30 days of your date of employment or newly benefits-eligible job.

You must re-enroll in the Opt-Out Incentive each year during the Annual Benefits Enrollment period if you want to receive the incentive in the following calendar year. Your Opt-Out Incentive election does not carry over from year to year.

Forms & Resources

Every effort has been made to ensure this information is current and correct. Information on this page does not guarantee enrollment, benefits and/or the ability to make changes to your benefits.

Updated: 12/10/2023