The Group Insurance Board has approved changes to the Income Continuation Insurance (ICI) Program that will go into effect on February 1, 2024.

The changes consolidate the separate standard and supplemental coverage levels into a single coverage level that simplifies the program. The goal is a program that is easier to understand and administer. 

Currently, standard coverage only covers an employee’s earnings up to $64,000 per year. An employee whose annual earnings are more than that amount can elect supplemental coverage to cover their full earnings, up to a maximum of $120,000 per year.

Beginning February 1, 2024, employees enrolled in the ICI Program will have their full earnings, up to $120,000 per year, covered automatically. There will be no optional supplemental coverage available. 

This change eliminates the need for employers to complete the annual administrative process of offering supplemental coverage to eligible employees.

Premiums

Currently, employers pay a portion of the standard ICI premium. There is no employer contribution for supplemental ICI premiums; these are entirely paid by the employee. Once the ICI Program changes go into effect, employers will contribute a portion of the premium for the full amount of an employee’s earnings, up to $120,000 per year. 

Next Steps

For Employers

In January 2024, during the annual ICI premium review and update, employers will determine employees’ new earnings amount to be used for ICI premium purposes. Instead of capping the earnings amount at $64,000 for employees who had not previously elected supplemental ICI coverage, the full amount of the employees’ annual earnings, up to $120,000, should be used to determine the ICI premiums that will go into effect February 1, 2024. There will be only one ICI premium rate table, instead of separate tables for standard and supplemental coverage.

This change does not affect the annual deferred enrollment period. That process will continue as always. Also, this change does not create a special enrollment period for any employees who are currently not enrolled in ICI. Those employees can still enroll through evidence of insurability or through deferred enrollment when they become eligible.

For Employees

Employees currently enrolled in the ICI Program do not need to take any action to implement this change. However, employees should be aware that premiums will likely increase due to the increased coverage available, notably if the employee earns more than $64,000 and is not currently enrolled in supplemental coverage. Other employees could see a decrease in premiums if they were enrolled in supplemental coverage, due to the new employer share of premiums for coverage over $64,000. 

Questions

This Frequently Asked Questions document is available for your reference. This document will be updated as needed. 

Please email any questions to: