Health Insurance Buy-Out Program

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 and state retirees 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 and state retirees will receive a monthly check. The amount of payment depends on your health plan and coverage.

For a buy-out example, please review the GIC benefit guides.


To qualify for the health insurance buy-out program, you must meet all of the following requirements: 

  • You are a state employee or retiree;
  • You must be enrolled in a GIC health plan and meet the minimum enrolled coverage period requirement determined by the enrollment period you participate in specified under Enrollment below.
  • All GIC premiums must be up to date through the end of the enrollment eligibility period (For enrollment during Annual Enrollment: June 30th or during Fall Buy-Out: December 31st).
  • If your coverage is terminated for non-payment of premium, you will no longer be eligible for the Buy-Out program; and,
  • You must continue to maintain basic life insurance.

Please note: Municipal members are not eligible for the health insurance buy-out program.


There are two buy-out periods. Applications are only accepted during the two buy-out periods specified below. Your reimbursement will be determined based on the GIC benefits you are enrolled in at the end of the covered period.

  • 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.
  • Fall Buy-Out (October 2-30 2024): 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.

Enroll in the GIC's health insurance buy-out program

Health Insurance Buy-Out Rates

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