Health Insurance
Buy-Out

Health Insurance Buy-Out

To be eligible for the Health Insurance Buy-Out, you must have other non-GIC health insurance coverage through another employer-sponsored plan that meets Internal Revenue Service “minimum value” criteria and must maintain GIC basic life insurance.

What is the Buy-Out Program?

Under the Buy-Out plan, eligible state employees receive 25% of the full-cost monthly premium in lieu of health insurance benefits for one 12-month period of time.

You will receive a monthly check. The amount of payment depends on your health plan and coverage.

For Example:

State Retiree with UniCare State Indemnity Plan/ Medicare Extension (OME) individual coverage:

Full-Cost premium on July 1, 2020 (Monthly):

$387.44

12-month benefit =

25% of this premium


Retiree receives 12 payroll
deposits or monthly checks of:*

$96.86

Yearly Earnings (12 monthly payments):*

$1,162.32

*subject to federal, Medicare, and state taxes

When to Enroll

There are two buy-out periods, and your reimbursement will be determined based on your product at the end of the covered period.

.

  • During Annual Enrollment: If you were insured with the GIC on January 1, 2020 or before and continue your coverage through June 30, 2020, you may apply to buy out your health plan coverage effective July 1, 2020, during Annual Enrollment.
  • October 5 – October 30, 2020:

    If you are insured with the GIC on July 1, 2020 or before, and continue your coverage through December 31, 2020, you may apply to buy out your health plan coverage effective January 1, 2021. The enrollment period for this buy-out is October 5 – October 30, 2020.

Form Submission and Deadline

Submit your completed form no later June 1, 2020 for the July 1, 2020 buy-out or October 30, 2020 for the January 1, 2021 buy-out.

QUESTIONS?

READY TO ENROLL?