Eligible State of Iowa employees can elect to opt-out of state-sponsored health insurance coverage and receive a payment of $125 monthly.
To be eligible to opt-out of health insurance and receive the $125 payment, you must be:
- Full-time (work 30 or more hours per week) benefit-eligible employee
- NOT covered by Iowa Choice, National Choice, or Alliance Select (active or retiree) through a family member, including a domestic partner
Electing to Opt-out of Health Insurance
You may elect to opt-out of health insurance coverage:
- When you are first eligible for state-sponsored health insurance coverage
- During the annual enrollment and change period
- As a result of a qualifying life event where the life event is consistent with a change in health insurance that allows you to completely cancel health insurance.
You must elect the opt-out option in IowaBenefits. If you do not make a health insurance election in IowaBenefits, you will not default to the opt-out option. Also, you must elect the opt-out option every year to continue to receive the payments.
- You are not required to provide documentation that you have other health insurance coverage to receive the opt-out payment.
- You are not required to be enrolled in a state-sponsored health insurance at the time you elect the opt-out of health insurance coverage.
The $125 opt-out payment is:
- Paid on the first pay warrant of the month
- Taxed as part of your income at your W-4 requested withholding status
- Shown on the online payroll warrant in the Other Pay field