BN - Health Opt-Out Incentive Business Process


Effective January 1, 2016, UW employees who are covered under the State Group Health Insurance program may be eligible to receive $2,000 by opting out of the program. The Department of Employee Trust Funds (ETF) and the Department of Administration -Division of Personnel (DPM) have provided the following guidance regarding the health Opt Out Incentive option.This KB describes the business process for documenting the employee opt-out decision.


warning sign Craftworkers and those covered under the Grad/Short-term Academic Staff benefit programs, are not eligible for the $2,000 incentive, even if they decline coverage.

You may click on the links below to navigate directly to a section:

Employee & Employer Share - Incentive Schedule: 
(The schedule indicates which pay period the Employer Share of a Health Insurance Opt-Out Incentive will be added to an employee's payroll check.)



Institution Process:

  1. Institution verifies that the employee completes the following sections of the health application:

    • Section 1: Applicant Information
    • Section 2: Spouse Information
    • Section 12: Decline Health Insurance and Elect the Opt Out Incentive marked YES
    • Section 13: Employee signature and dated

  2. Institution completes Employer Information.

  3. Benefit Administrators should be entering information from Section 11 into HRS - Benefits Personal Data Page and enrolling the employee into the Health Opt-Out plan into HRS - On-Demand.

  4. Institutions will receive an email notifying them of the approval or denial of the Health Opt-Out decision.  They will need to contact the employee with the information.

  5. If the employee rescinds their Health Opt-Out enrollment, the Benefit Administrator will need to update HRS to remove/change the Opt-Out enrollment.

UW Service Center Process:

  1. Do initial verification
  2. Email ETF to verify eligibility
  3. Create WISCIT with Empl ID, Empl Name and Opt Out Verification and send an email to institution on approval or denial


Related KBs:

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