Opt Out Program Description
Eligible employees who have other employer sponsored group health insurance may opt out of their NYSHIP coverage in exchange for an incentive payment. The incentive payment is $1,000 for waiving Individual coverage or $3,000 for waiving Family coverage on an annual basis. The incentive payments will be prorated and reimbursed through your biweekly paycheck throughout the year (payable only when an employee is on the payroll). Note: The payments will be taxable income.
- Must currently participate in Opt Out
- Be enrolled in NYSHIP (Blue Choice, Empire, MVP etc.) since 4/1/14 or date of hire
- Remain enrolled in NYSHIP through the end of this plan year
- The employee must provide information and attest to having other employer sponsored group health insurance in effect for the Opt-Out period. (you may not opt out to go without health insurance coverage)
The annual incentive amount for opting out of NYSHIP coverage is $1,000 for Individual coverage or $3,000 for Family coverage. The incentive payments will be prorated and reimbursed through the employee's biweekly paychecks throughout the year (payable only when an employee is on the payroll and meets the requirements to be eligible for the State to contribute to the cost of NYSHIP coverage).
The incentive amount will be credited to the employee's bi-weekly pay check and will be treated as taxable income. The bi-weekly incentive amounts will be $38.46 for opting out of Individual coverage ($1,000/26 paychecks) or $115.38 for opting out of Family coverage ($3,000/26 paychecks).
Incentive payments to employees participating in the Opt-Out Program will begin with the plan year's rate change.
1. Follow these instructions - click here. Both the PS-404 and PS-409 must be completed.
2. Submit to The Office of Human Resources by the conclusion of the Option Change Period - it is highly recommended to submit the required documents prior to Shutdown