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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.

Table of Contents

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, 2021 (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

When to Enroll

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

  • During Annual Enrollment: If you were insured with the GIC on January 1, 2021 or before, and continue your coverage through June 30, 2021, you may apply to buy out your health plan coverage effective July 1, 2021.
  • October 4 – October 29, 2021: If you are insured with the GIC on July 1, 2021 or before, and continue your coverage through December 31, 2021, you may apply to buy out your health plan coverage effective January 1, 2022. The enrollment period for this buy-out is October 4 – October 29, 2021.

Form Submission

Use MyGICLink to submit your completed Buy-Out form no later than May 5, 2021 for the July 1, 2021 buy-out or October 29, 2021 for the January 1, 2022 buy-out. Forms received after the deadline will not be accepted.

Buy-Out Rates

Pre-Tax Premium Deductions

The Commonwealth deducts your share of basic life and health insurance premiums on a pre-tax basis. During Annual Enrollment, or when you experience a qualified status change as outlined on the pre-tax form, you may change the tax status of your premiums:

  • If your deductions are taken on a pre-tax basis, you may elect to have them taxed, effective July 1, 2021.
  • If your deductions are taken on an after-tax basis, you may switch to pre-tax effective July 1, 2021.

Contact your payroll coordinator or the GIC with questions.



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