Buy-out Open Enrollment October 3-November 4, 2016
For Buy-out Effective January 1, 2017
If you are a state employee or retiree and your spouse’s health insurance open enrollment is this fall, you may want to consider enrolling in your spouse’s health insurance coverage and buying out your GIC coverage. If you were insured with the GIC on July 1, 2016, or before, and continue your coverage through December 31, 2016, you may buy out your health plan coverage during the October 3 – November 4 buy-out open enrollment.
Under the buy-out plan, eligible state enrollees receive 25% of the full cost monthly premium in lieu of health insurance benefits for one 12-month period. Employees in HR/CMS and UMASS Agencies will receive their remittance on a monthly basis in their paycheck with "Reimburse" listed on the pay advice. Employees of Housing and other Authorities, and retirees, will receive a check monthly. The amount of payment depends on your health plan and coverage.
State employee with Tufts Health Plan Navigator family coverage:
Full-cost premium on July 1, 2016: $1,668.84
Monthly 12- month benefit = 25% of this premium
Employee receives 12 payroll deposits or monthly checks of $284.96 (after federal, Medicare, and state taxes)
Due to recent Internal Revenue Service and Treasury Department guidance, in order to take advantage of the buy-out you must now certify that you have health insurance through another employer-sponsored plan (usually through your spouse); and that the other employer group coverage provides “minimum value.”
The Buy-Out rates reflect deductions for state, Medicare (Active Employees only) and federal taxes.
If your application is approved, you will receive your first payment in February.
Buyout Rates for State Employees -Effective July 1, 2016
Buyout Rates for State Retirees -Effective July 1, 2016
Buyout Rates for GIC Retired Municipal Teachers -Effective July 1, 2016
To take advantage of the health insurance buy-out, send the completed Buy-Out form to the GIC no later than November 4, 2016 for the January 1, 2017 buyout. Forms received after the deadline will not be accepted.
The Buy Out Form - Complete and return the buyout form to the GIC no later than November 4, 2016.
This information provided by the Group Insurance Commission .