Opt Out of Health Insurance

You may be eligible to receive up to $2,000 from your employer if you opt out of health insurance coverage under the State of Wisconsin Group Health Insurance Program.

Eligibility

You are eligible for the opt-out incentive if you are an employee of the state, UW Hospitals and Clinics, or the Universities of Wisconsin (including Craft Workers), and all of the following are true:

You did not opt out in 2015
You are not covered by the State of Wisconsin Group Health Insurance Program (as a subscriber or dependent) during the calendar year, even if it's only for a day*
You are not a Graduate Assistant or short-term academic staff

*Unless you were insured as a graduate assistant and left that position to begin a WRS-eligible position during the same plan year.

Incentive Payment

You must opt out each year during open enrollment to receive incentive in the following year. The $2,000 incentive will be paid out evenly throughout the year, based on your payroll schedule. It will not be provided as a lump sum.

If you opt back into coverage due to a qualifying life event, you will forfeit any portion of the incentive payable after your reenrollment. If you are hired mid-year and opt out, you will receive a pro-rated incentive based on when you opted out.

Please note that the incentive is considered taxable income and will be reported on your W-2 form, but it will not count toward your Wisconsin Retirement System (WRS) earnings.

Opt Out

During Open Enrollment

You must opt out each year during open enrollment by one of the following methods:

Opt out electronically:
- Check with your employer to see if this option is available.
- Employees of STAR, Universities of Wisconsin, and UW Hospital and Clinics can opt out electronically.
Submit a paper form:
- Complete the Health Insurance Application/Change (ET-2301) form.
- Submit it to your payroll or benefits office.
- Be sure to complete Sections 1, 12, and 13 of the form.

As a New Hire

You must submit a Health Insurance Application/Change (ET-2301) form within 30 days of your hire date.

Be sure to complete sections 1, 4, 12, and 13 of the paper application.
In section 4 indicate you are declining health coverage and electing the opt-out incentive.

Most employees cannot opt out electronically as a new hire, but Universities of Wisconsin employees may opt out electronically.

Additional Considerations

Sick Leave Credits

Unused sick leave can be a valuable benefit. Upon retirement or in the event of your death while employed, unused sick leave is converted into credits to help pay for health insurance for you or your surviving spouse/dependents—but only if you are enrolled in the State of Wisconsin Group Health Insurance Program. If you opt out, your unused sick leave credits will have no value unless you later reenroll in the program. See the Sick Leave Conversion Credit Program Brochure (ET-4132) for more information.

Dental Insurance

If you opt out of health insurance, you will not be eligible for the Uniform Dental Benefit, as it is only available to those enrolled in the State Group Health Insurance Program. However, during open enrollment, you may still be able to enroll in the Preventive plan. See the Dental Insurance page for more information.

Affordable Care Act (ACA)

The ACA requires most Americans to have health insurance, or you may have to pay a penalty. If you opt out of the State Group Health Insurance Program and do not have other coverage, you may be subject to a fine when you file your annual taxes.

Frequently Asked Questions

Yes you are eligible for the opt-out incentive, if you meet the eligibility criteria listed on this page.
Yes you are eligible for the opt-out incentive if:
- You are eligible to participate in the Group Health Insurance Program
- You are eligible for an employer contribution
- You meet the other eligibility requirements
However, you must wait until your employer contribution begins to start receiving incentive payments.
Yes you are eligible for the opt-out incentive if you meet the other eligibility requirements.
Yes you are eligible for the opt-out incentive if you are eligible to participate in the Group Health Insurance Program and you meet the other eligibility requirements. However, once your employer’s health insurance contributions end, any opt-out incentive payments also end.
Yes, you can.
Yes, the dependent spouse is eligible for the opt-out incentive, if they meet the other eligibility requirements. Being covered as a dependent under a state family plan in 2015 is not the same as opting out of coverage.
No, the state employee is not eligible for the opt-out incentive if they were eligible for an employer contribution through the state and chose to waive state coverage.