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UARSC Benefits for Cash Plan

Benefits for Cash Enrollment Authorization Form (PDF)

What is the Benefits for Cash Plan?

The Benefits for Cash Plan is an optional benefit plan that allows you to waive medical, dental and/or vision insurance plan(s) in exchange for cash if you have other coverage. If you waive or cancel your medical, dental and/or vision insurance plan(s), you will receive additional cash in your paycheck each month. The plan year runs from January through December.

The Benefits for Cash Plan payment is treated as taxable income and will be subject to the same payroll taxes (federal, state, social security) as regular salary. The additional cash income will be reported as income on Form W-2 in the year it is received. 

You need to make sure your medical, dental and/or vision needs are met before your elect the Benefits for Cash Plan. If you decide to waive medical, dental and/or vision coverage(s), you will be required to certify on the Benefits for Cash Plan Enrollment Form that you have alternative coverage(s) and those coverage(s) have been approved by the Foundation.

Who is eligible?

If you are a regular benefited employee and you have certified your alternative coverage(s) and that coverage has been approved by UARSC, you are eligible for the Benefits for Cash Plan.

How much is the cash payment?

If you elect to receive cash in lieu of medical, dental and/or vision coverage(s), the cash payments made to you will be equal to 50% of the current company contribution to the respective health plans for employee only coverage. If the health plan contribution rates should change during future plan years, so will the monthly cash payments to each employee enrolled in the Benefits for Cash Plan.

When is enrollment?

Current employees have two opportunities to enroll in the Benefits for Cash Plan: (1) during the regular open enrollment period for the respective benefit plans. Open enrollment for medical benefits is normally during the months of September and October, with coverage effective January 1st. There is no open enrollment for dental or vision benefits. (2) Upon return from an approved leave of absence where you missed the open enrollment period. New employees are given the opportunity to enroll in the Benefits for Cash Plan during orientation and it is effective the first of the month following date of hire.

How do I enroll?

You need to complete the Benefits for Cash Plan Enrollment Authorization Form (PDF) to enroll. When you sign the form, you are certifying you are covered by another medical, dental and/or vision plan(s) and you agree to the terms and conditions of the Benefits for Cash Plan. When you enroll in this plan, you will also need to complete forms to cancel the corresponding medical, dental and/or vision coverage(s).

When will coverage be effective?

Your Benefits for Cash Plan will be in effect for the full plan year (January 1 through December 31). Your enrollment in the Benefits for Cash Plan will continue from year to year until you change or terminate your enrollment during the subsequent open enrollment periods. At that time, you will have to complete a new Benefits for Cash Plan Authorization Form to change or cancel your Benefits for Cash amount(s) in addition to the required medical, dental and/or vision forms.

Can I change my election during a plan year?

You may not start or stop your Benefits for Cash Plan election in the middle of a plan year. Changes to the Benefits for Cash Plan can only be made (1) during the regular open enrollment period for the respective benefit plans. Open enrollment for medical benefits is normally during the month of September, with coverage effective January 1st or (2) upon return from an approved leave of absence where you missed the open enrollment period. There is no open enrollment for dental or vision benefits.

What if I lose my other coverage?

Should you lose your other coverage through uncontrollable circumstances during the year and outside the open enrollment period, you either wait until open enrollment, or submit a request enrollment for self and/or all eligible family members along with evidence of loss of other coverage(s). If approved, you will then need to complete all necessary enrollment/change documents required by the medical, dental and/or vision plans.

What if I terminate my employment while enrolled?

If you elect to participate in the Benefits for Cash Plan and waive coverage under the medical, dental and/or vision plan(s), you also waive any Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation rights you may have had under the medical, dental and/or vision contract(s).

What if I die while enrolled?

If you are married and you waive medical, dental and/or vision coverage(s) under the Benefits for Cash Plan and you subsequently die without coverage, your surviving spouse will not have medical, dental and/or vision continuation rights.

This Benefits for Cash Plan is intended to qualify as a 'cafeteria plan' under Section 125 of the Internal Revenue Code of 1986, as amended, and is to be interpreted in a manner consistent with the requirements of Section 125. The UARSC Board of Directors reserves the right to amend, change or cancel this plan at any time.

This plan was revised on October 23, 2003 and approved by UARSC's Board of Directors. This plan revision is to be effective for the plan year beginning January 1, 2004.