Summer Prepay Deductions: Continuing Insurance Coverage While on Summer Break
June 12, 2020
This spring, summer prepay insurance premium deductions were deducted from paychecks along with regular monthly insurance premium deductions for the following employees:
Summer prepay deductions were taken to continue insurance coverage through the summer months. Eligible employees were sent an email prior to these paychecks with an estimated summer prepay deduction amount. Deductions were taken for State Group Health Insurance and any other insurance programs in which the employee is enrolled.
Opt-Out Incentive and Health Savings Account (HSA) employer contributions will continue during the summer months. Summer prepay deductions are not taken for the following:
Confirming Summer Prepay Deductions
Employees should check their spring 2020 earnings statements to verify if they had summer prepay deductions taken from their paychecks. Summer prepay deductions appeared as a lump sum on earnings statements on the following paychecks:
Deductions taken pre-tax (most medical-related premiums and a portion of State Group Life Insurance premiums) will be added together under ‘Prebtx.’ Deductions taken post-tax (most life insurance premiums) will be added together under ‘Preatx.’ Regular benefit deductions for the month will continue to be listed under the plan name.
In the fall, 9-month employees’ regular insurance premium deductions will resume on the October 1, 2020 paycheck. Regular insurance premium deductions for 12-month employees will resume upon return from their summer work break.
What if an Employee does not Have Summer Prepay Insurance Premiums Deducted?
If an employee does not have summer prepay deductions taken in the spring, and then has a summer session/summer service appointment, they will be billed directly for payment of the additional premiums due to provide them with insurance coverage during the summer months.
Payment must be made by the billing invoice due date to ensure that insurance benefits are not canceled due to non-payment. If benefits are canceled due to nonpayment, the next opportunity to add insurance benefits may be during the fall Annual Benefits Enrollment period with an effective insurance coverage date of January 1, 2021. Some insurances can be applied for through evidence of insurability.
What if an Employee’s Employment Status Changes?
If an employee’s summer 2020 or fall 2020 employment status changes after they have had summer prepay deductions, they may receive deduction refunds. If an employee will not be returning in the fall, they should contact their human resources office to determine their insurance coverage ending dates.
Employees who anticipate any other status change; marriage, adoption, birth, divorce, etc., should contact their human resources office to understand the impacts to their insurance benefits.
Questions
If you have questions, contact your human resources office.
Source: UW-Shared Services, Service Operations
Categories: Payroll