The Health Insurance Buy-Out option is available two times during the year: the spring Annual Enrollment and during a special fall enrollment period for coverage effective July 1 and January 1, respectively. Employees insured with the GIC for health coverage on January 1 (or July 1 for the fall enrollment) of the current year, and who are still insured for health coverage with the GIC, and have comparable non-state coverage elsewhere may elect to participate in the Buy-Out program.
Employees who cancel their health plan outside of their two enrollment periods are not eligible for the buy-out. The benefit is limited to twelve (12) taxable monthly payments. The payments equal 25% of the current full-cost premium for the Plan in which the employee is enrolled, based on the type of coverage (individual or family) the employee had on January 1 for the spring Annual Enrollment period (or July 1 for the fall enrollment) of the current year. The employee must continue to maintain basic life insurance coverage. Employees who buy out in the spring will receive their first buyout reimbursement in August. Employees who buy out in the fall will receive their first buyout reimbursement in February.
The Buy-out form is also available on the GIC’s website during the enrollment periods.
To apply for the buy-out:
- Employee completes and signs Buy-Out form.
- Review this form for completeness.
- Photocopy completed form and file in the employee’s personnel file.
- Do not cancel coverage in MAGIC; the GIC will handle this process for approvals.
- Send original completed form to the GIC’s Operations Department by the end of the enrollment period. Forms received after the deadline will not be accepted due to tax implications.
- You and the employee will receive a confirmation letter of the buy-out approval.
This information provided by the Group Insurance Commission .