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.

UWSS Service Operations 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
  • Remove Health Opt-Out Incentive enrollment from HRS
  • Reconcile incentive premiums


Related KBs:

Related Links: