The Group Insurance Board has approved changes to the Income Continuation Insurance (ICI) Program that will expand coverage to employees aged 70 and over. This change will go into effect May 1, 2023.

What Employers Need to Do

Updated Materials

Special Instructions When Submitting Applications to ETF

Questions

Sample Employee Email

Current enrollees will no longer have their coverage terminated when they turn age 70. Coverage will continue as long as the enrollee is employed with a participating employer and continues to pay required premiums. 

Additionally, the duration of benefits for employees disabled after their 60th birthday will be extended. The new maximum duration of benefits schedule is:

Age at Disablement Maximum Duration of Benefits from Date of Disablement
On or before 60th birthday Benefits payable to age 65
After 60th birthday 5 years

 

What Employers Need to Do

  1. Offer ICI coverage to all new hires regardless of age. This is effective immediately.
    • State employers will also need to start offering coverage through deferred enrollment to all eligible employees, regardless of age, during the annual deferred enrollment period.
  2. Employers should no longer terminate ICI coverage for enrolled employees when they turn age 70. Coverage should continue unless the employee elects to cancel coverage. This is effective immediately.
  3. Update your website and/or any internal documents that refer to ICI coverage eligibility ending at age 70.
  4. Identify all employees aged 70 and over, and, if eligible (see "Who is eligible to enroll?" below), offer them an opportunity to enroll or re-enroll in ICI coverage. Employers must send a notice of eligibility to eligible employees no later than May 31, 2023.

Who is eligible to enroll?

  1. Employees who previously had ICI coverage but had their coverage terminated when they turned age 70.
  2. Employees who were not offered coverage at the time they were hired because they were age 70 or older, or who would have been age 70 or older, on their ICI coverage effective date.
  3. Employees who would have been eligible to enroll during the 2023 deferred coverage enrollment period (January 1 – March 1, 2023) but were not given the opportunity because they exceeded the age limit.

Note: Active employees who were previously offered ICI coverage but elected not to enroll will not have a new opportunity to enroll at this time, even if they are now over age 70. However, if eligible, they may enroll for coverage during the next annual deferred enrollment period (state employees only), or they may apply for coverage at any time by filing evidence of insurability.

What is the deadline for employees to enroll?

Beginning on the date of the employer notice of eligibility, employees will have 30 days to complete and return an application to their payroll/benefits office. 

When would coverage be effective?

ICI coverage will be effective the first day of the month that first occurs during the 30-day enrollment period. ICI coverage elected during this special enrollment period cannot be effective prior to May 1, 2023.

STATE ONLY: How is the ICI premium category determined?

Premium categories should be determined in the same manner as they are during the annual ICI premium review period in January. Review the employee’s accumulated sick leave hours as of the last complete payroll period in 2022. This was pay period 1A (December 18, 2022 - December 31, 2022). Determine the employee’s premium category based on their sick leave balance.

If an employee who previously had ICI coverage under premium category 4, 5, or 6 (“premium plateaus”) at the time their coverage was terminated due to reaching age 70, but would now be placed in a lower premium category based on their 2022 end-of-year sick leave balance, should be placed in the same premium category that they were in at the time their coverage terminated. (See Subsection 404 of the Income Continuation Insurance Administration Manual – State (ET-1119) for more information on the annual review process and premium plateaus.)

Example: Adam was in premium category 5 when his ICI coverage was terminated on his 70th birthday. Based on his 2022 end-of-year sick leave balance, he would be placed in premium category 4. However, because he was previously in category 5, which is a “premium plateau,” he should be placed back in premium category 5.

Updated Materials

The ICI administration manuals and the Evidence of Insurability (ET-2308) application have been updated and are available on ETF’s website. The ICI brochures (state: ET-2106; local: ET-2129) will be updated soon; you will be able to find the most up-to-date publications on the ETF website.

Special Instructions When Submitting Applications to ETF

When completing the employer section on page 2 of the ICI application for coverage, under Reason to submit application:

  • Mark box Other (specify)
  • Write in Special Enrollment - Age 70+

Questions

Please email any questions to:

Sample Employee Email

You can use the below sample emails to provide notice of this special ICI enrollment opportunity to your eligible employees. Note there is one for state employees and a different sample email for local employees.

For State Employees

(DATE OF NOTICE)

You are receiving this notice because you have a special opportunity to elect coverage in the Income Continuation Insurance (ICI) Program.

The ICI Program is expanding coverage to employees aged 70 and over effect May 1, 2023.

Additionally, the duration of benefits for employees disabled after their 60th birthday will be extended. The new maximum duration of benefits schedule is:

Age at Disablement Maximum Duration of Benefits from Date of Disablement
On or before 60th birthday Benefits payable to age 65
After 60th birthday 5 years

If you choose to enroll, you must submit your completed ICI application to your payroll/benefits office no later than (ENTER DATE THAT IS 30 DAYS AFTER THE DATE ON THIS NOTICE).

Your coverage would be effective on (ENTER DATE.  If this notice goes out to your employees on or before 5/1/23, their coverage would be effective 5/1/2023.  If this notice goes out between 5/2/23 – 5/31/2023, coverage would be effective 6/1/2023.). 

For more information on ICI coverage, benefits, and premium rates, please see the State Income Continuation Insurance (ET-2106) brochure on the Department of Employee Trust Funds website at etf.wi.gov.

If you have questions, please contact (Insert appropriate contact person and contact information).

For Local Employees

(DATE OF NOTICE)

You are receiving this notice because you have a special opportunity to elect coverage in the Income Continuation Insurance (ICI) Program.

The ICI Program is expanding coverage to employees aged 70 and over effect May 1, 2023.

Additionally, the duration of benefits for employees disabled after their 60th birthday will be extended. The new maximum duration of benefits schedule is:

Age at Disablement Maximum Duration of Benefits from Date of Disablement
On or before 60th birthday Benefits payable to age 65
After 60th birthday 5 years

If you choose to enroll, you must submit your completed ICI application to your payroll/benefits office no later than (ENTER DATE THAT IS 30 DAYS AFTER THE DATE ON THIS NOTICE).

Your coverage would be effective on (ENTER DATE.  If this notice goes out to your employees on or before 5/1/23, their coverage would be effective 5/1/2023.  If this notice goes out between 5/2/23 – 5/31/2023, coverage would be effective 6/1/2023.). 

The local government ICI program is currently on a premium holiday through March 31, 2024, with the possibility of the premium holiday continuing beyond that date. This means you will not be charged premiums for ICI coverage until the premium holiday ends. 

For more information on ICI coverage and benefits, please see the Local Income Continuation Insurance (ET-2106) brochure on the Department of Employee Trust Funds website at etf.wi.gov.

If you have questions, please contact (Insert appropriate contact person and contact information).