Employees can receive cash in lieu of their State-sponsored medical insurance and/or dental benefits.
To be eligible for cash option, you must have medical and/or dental coverage through another source.
When considering this option, employees should check to ensure that their other insurance provides adequate coverage for themselves and their family. Keep in mind that the money is considered taxable income. Depending on which cash option you enroll in, you'll receive:
$128/month in lieu of medical benefits;
$12/month in lieu of dental benefits; or
$140/month in lieu of medical and dental benefits.
The money is treated as taxable income and is reported on your W-2 statement for the tax year when you receive payment.
Once you enroll, cash option automatically continues from year to year (except for permanent-intermittent employees) unless you cancel or change your cash option during an open enrollment period.
Three-Year commitment - if you enroll in the cash option in lieu of dental benefits you may not re-enroll in a State-sponsored dental plan for three "plan years." The only exception to this is if you lose your other dental coverage.
For more information, please see the links below.
Eligibility
Enrollment
Frequently Asked Questions
Publications and Forms
2009 FlexElect Plan Year Handbook (Adobe Acrobat)
2008 FlexElect Plan Year Handbook (Adobe Acrobat)
STD. 701C Cash Option Enrollment Authorization (Adobe Acrobat)
For more information, please read the FlexElect Handbook. If you have additional questions please contact your personnel office.
