Health Insurance - How You and the RF Share the Cost
The RF pays the majority of the total cost for individual and dependent coverage. The RF contributes 85 percent of the cost for individual health coverage and 70 percent of the cost for dependent health coverage; however, the RF's contribution is capped at what it pays for the Traditional PPO plan option.
You pay your share of your coverage in the form of biweekly contributions from your paycheck. For more information about plan premiums, refer to the Benefits Bulletin.
Paying on a Pretax Basis
Under the RF's Flexible Benefits Program, you may pay your share of the health insurance premium with pretax earnings. This means that your contribution toward health insurance will reduce your taxable income by that amount, thereby reducing your federal and state income and Social Security taxes.
Participation in this program is automatic, unless you decline this option by contacting your HR department. This benefit is made available by the RF under Section 125 of the Internal Revenue Code. In order for domestic partner or same-sex spouse premiums to qualify, the domestic partner or same sex spouse must be a tax dependent under IRC Section 152.
Salary increases, life insurance, retirement contributions, and disability benefits will continue to be based on the amount of your salary before reduction. However, your salary after reduction is used as the basis for determining Social Security contributions and benefits.
Because of tax advantages under the Flexible Benefits Program, a few special rules apply. Under Internal Revenue Service (IRS) regulations, once your pretax deduction becomes effective for a calendar year, you may not change your coverage election or drop coverage until the next open enrollment period. Refer to Open Enrollment in the Health Care Section of the Benefits Handbook or Postdoctoral Benefits Handbook.
The only exception is if you meet one of the qualifying events described under Qualifying Events in the Health Care section of the Benefits Handbook or Postdoctoral Benefits Handbook.