Summer Prepay Insurance Premium Deductions
March 1, 2021
Summer prepay insurance premiums are deducted from spring paychecks to cover the cost of continuing insurance coverage through the summer (contract break) months for eligible Faculty, Academic Staff, Limited Appointees, Student Assistants, and Employees-in-Training.
The following employee groups will have Summer prepay deductions taken for State Group Health Insurance and other insurance programs in which enrolled* in addition to regular monthly insurance premium deductions.
Employees will receive an email with an estimated summer prepay deduction amount prior to the above pay dates.
Why are Summer Prepay Deductions Taken in the Spring?
The additional summer prepay deductions are taken to continue an employee’s insurance coverage through the summer (contract break) months. The Summer prepay deductions must be taken in the spring since these insurance premiums cannot be taken during a contract break and cannot be deducted from summer service/summer session earnings.
What if an Employee’s Employment Status Changes?
If an employee’s summer or fall 2021 employment status changes after they have had summer prepay deductions, they may receive deduction refunds. If an employee will be terminating employment, and will not return in fall 2021, they should contact their human resources office to determine their employment termination and insurance coverage end dates.
Employees who anticipate that they will experience any other status change; marriage, adoption, birth, divorce, etc., should contact their human resources office immediately regarding the impact to their insurance benefits.
What if an Employee does not Have Summer Prepay Deductions Taken?
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.
If a bill is received, 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 enroll in the insurance benefits may be during the fall 2021 Annual Benefits Enrollment period with an effective insurance coverage date of January 1, 2022.
For questions, contact your human resources office.
* Does not include: Flexible Spending Account (FSA), Health Savings Account (HSA), Tax Sheltered Annuity (TSA), and Wisconsin Deferred Compensation (WDC) deductions. Health Opt-Out Incentive payments and HSA Employer contribution will be processed in the summer months.
Source: UW System Human Resources
Categories: Insurance, Employee Reimbursement Account, Supplemental Retirement Program