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Health Insurance Opt-Out

Eligible State of Iowa employees can elect to opt-out of state-sponsored health insurance coverage and receive a payment of $125 monthly.

Eligibility

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

AND

  • Not be covered by any state-sponsored (active, retiree, and Board of Regents) health insurance plan 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.

Note:

  • 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.

Opt-Out Payment

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

The Benefits Management Team of the Iowa Department of Administrative Services developed this webpage to provide you with information about your benefit options, and serve as a valuable resource for information about your benefits.  The benefits described at this webpage are subject to change.  Nothing herein shall be construed as a guarantee of benefits.  This webpage is not a complete description of the State of Iowa’s benefit plans.  Nothing on this webpage supersedes or changes any of the terms and conditions of any plan documents, insurance policies, or other legal agreements.  If the wording in this webpage contradicts any plan documents, laws, regulations, administrative rules, insurance policies, or other legal agreements, the wording in the official documents and agreements will govern. If you have any questions, please contact your human resources associate.


01/11/2018