What is the Buy-Out Program?
Under the buy-out plan, eligible state retirees receive 25% of the full-cost monthly premium in lieu of health insurance benefits for one 12-month period. You will receive a monthly check. The amount of payment depends on your health plan and coverage.
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
Are you eligible?
To be eligible, 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.
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.
Submit your completed form no later than May 1, 2020 for the July 1, 2020 buy-out or October 30, 2020 for the January 1, 2021 buy-out.