The Group Insurance Board approved changes to simplify the Income Continuation Insurance Program for employees and streamline program administration for employers at the same time.
The changes, effective in 2024:
- increase the maximum earnings eligible for standard coverage from $64,000 to $120,000. This is a good thing, as employees with salaries above $64,000 will automatically have coverage for their full earnings, up to $120,000, and employers will now contribute a portion of the premiums for the expanded coverage.
- consolidate the separate standard and supplemental coverage levels into a single, more relevant coverage level that also makes the program much easier for you to understand and use; and
- eliminate the need for employers to complete an annual administrative process for supplemental eligibility and enrollments.
Looking Ahead – More Improvements Sought
The Department of Employee Trust Funds is seeking additional, significant improvements to the program through its 2023-25 biennial budget request. If enacted into law, state employees’ ICI premium rates would not be tied to sick leave accrual. This means that employees would not be required to exhaust their accumulated sick leave before ICI benefits are payable. Such a change would be in keeping with the primary goals of the state’s Accumulated Sick Leave Conversion Credit program and the Supplemental Health Insurance Conversion Credit program: Encourage employees to accumulate and save unused sick leave.
Consider Enrolling in ICI
The ICI program is available to both state employees and local government employees (if your employer participates). It is an income replacement plan that replaces a portion of your income if you are unable to work because of sickness or injury (both short and long-term).
Local government employees: The Group Insurance Board has extended the ICI Program premium holiday for 2023, based on the strong financial position of the local ICI plan. This means that employers and employees will not pay premiums for ICI coverage. For more information, review our brochure for local government employees (ET-2129).
State employees: Premiums will decrease by 20% in 2023, coming on the heels of a 50% decline in premium rates in 2022.
- If you are eligible to enroll through “deferred coverage,” your employer will contact you in January, and you’ll have the option to apply for coverage effective April 1. Please review our brochure for state government employees (ET-2106) for information on rates and eligibility for deferred coverage.
- Or, if you are in good health, you may apply for ICI coverage at any time by completing an “Evidence of Insurability” application. If your application is approved, your coverage would be effective the first of the month following the date of approval.
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