Overview

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

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

  • Are eligible for the WRS benefits package (i.e. 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 (i.e. Crafts workers not eligible for the incentive)
  • Do not receive State Group Health Insurance through a parent or spouse through another State agency (e.g. UW System, UW Hospital and Clinics)
  • In 2015, were eligible for an employer premium contribution to their health insurance and were enrolled in a State Group Health Insurance plan

Health insurance coverage through a parent or spouse employed by a local government entity 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. You will receive an equal portion of the payment each payroll period (if you are paid on a biweekly basis, payment will be distributed through 24 payrolls a year).

The Opt-Out Incentive 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 your surviving spouse/dependents (if you are covered under the health insurance program). If you choose to opt out, your unused sick leave credits have no value until/unless you re-enroll in the health insurance program in the future.
  2. Re-enrolling in Health Insurance. You may re-enroll during the year if they have a qualifying life event (such as marriage, birth of a child, loss of other coverage). The $2,000 Opt-Out Incentive will be prorated by payroll period.
  3. Enrollment in Other Benefit Plans. If you opt out of health insurance, you will not be eligible for Uniform Dental. However effective January 1, 2020, you will be eligible for Preventive Dental. During the Annual Benefits Enrollment (ABE) period, you may still elect a supplemental dental plan (even if you opt-out of health insurance).
  4. Taxable. The $2,000 Opt-Out Incentive is taxable.

How to Opt Out

You should elect the Opt-Out Incentive through Self Service during your initial 30-day enrollment period.

If you are unable to use Self Service to make your elections, you may complete a paper Health Insurance Application/Change Form (see Forms & Resources below) and submit it to your human resources office within 30 days of your date of employment or newly benefits-eligible job. You should 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).

If you are unsure if you are eligible for the $2,000 Opt-Out Incentive, contact your human resources office.

You must re-enroll in the Health Opt-Out Incentive each year during the Annual Benefits Enrollment period if you want to opt out for the following plan year. Health Opt-Out elections do 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.