PLEASE NOTE: Per the newly ratified UUP contract, UUP represented employees are no longer eligible for opt out effective the 2019 plan year.

Old Opt Out Option


  • Must currently participate in Opt Out
  • Be enrolled in NYSHIP (Blue Choice, Empire, MVP etc.) since 4/1/19* or date of hire
  • Remain enrolled in NYSHIP through the end of this plan year
  • The employee must provide information and attest to having other employer sponsored group health insurance in effect for the Opt-Out period. (you may not opt out to go without health insurance coverage)

*Please contact the Office of Human Resources, as there may be a five pay period wait without a qualifying event

Incentive Payments

The annual incentive amount for opting out of NYSHIP coverage is $1,000 for Individual coverage or $3,000 for Family coverage. The incentive payments will be prorated and reimbursed through the employee’s biweekly paychecks throughout the year (payable only when an employee is on the payroll and meets the requirements to be eligible for the State to contribute to the cost of NYSHIP coverage).

The incentive amount will be credited to the employee’s bi-weekly pay check and will be treated as taxable income. The bi-weekly incentive amounts will be $38.46 for opting out of Individual coverage ($1,000/26 paychecks) or $115.38 for opting out of Family coverage ($3,000/26 paychecks).

Incentive payments to employees participating in the Opt-Out Program will begin with the plan year’s rate change.

Important: The payments will be taxable income.


  • Complete both the PS-404 and PS-409.*

  • Effective the 2020 plan year, enrollees who continue to meet the eligibility required for the Opt-out Program are no longer required to make an annual re-election. You must notify the Benefits Administrator if you are no longer eligible for coverage through another employer-sponsored health plan (delays in notification of loss will result in a late enrollment waiting period when requesting NYSHIP coverage and enrollees will be required to re-pay any overpayments of Opt-out incentive payments.

*Proof of other insurance required