GIC 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.

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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. Employees in HR/CMS and UMASS agencies will receive the remittance monthly in their paychecks; employees of housing and other authorities will receive a monthly check. The amount of payment depends on your health plan and coverage.

For Example:

State employee with Tufts Health Plan Navigator family coverage:
Full-Cost premium on July 1, 2022 (Monthly): $2,038.79
12-month benefit = 25% of this premium
Employee receives 12 payroll deposits or monthly checks of:* $509.70
Yearly Earnings (12 monthly payments):* $6,116.40

*subject to federal, Medicare, and state taxes

Enrollment

There are two buy-out periods, and your reimbursement will be determined based on the GIC benefits you are enrolled in at the end of the covered period.

  • During Annual Enrollment: If you were insured with the GIC on January 1st of this year or before, and continue your coverage through June 30th of this year, you may apply to buy out your health plan coverage effective July 1st of this year.
  • October 3 – October 28, 2022: If you are insured with the GIC on July 1st of this year or before, and continue your coverage through December 31st of this year, you may apply to buy out your health plan coverage effective January 1st of next year.

Buy-Out Rates

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