Employee Health Insurance Contribution

As you are aware, as part of the Biennial Budget passed this past spring, (PL 2009, Chapter 213, Part GG and PL 2009, Chapter 413, Part K) most employees will be making a percentage contribution to the cost of health insurance premiums as of October 1, 2009.

Beginning with the first payroll in October 2009 the manner in which health insurance premium is calculated will change. Employee health insurance premium deductions will be implemented using the following salary levels (salaries as of July 1, 2009):

July 1, 2009

Less than or equal to $30,000.00 – 0% Employee Contribution of Premium

Greater than $30,000.00 or equal to $79,999.00 – 5% Employee Contribution of Premium

$80,000.00 and above – 10% Employee Contribution of Premium

As of July 1, 2010, the contribution percentages will change as follows:

July 1, 2010

Less than or equal to $30,000.00 – 5% Employee Contribution of Premium

Greater than $30,000.00 or equal to $79,999.99 – 10% Employee Contribution of Premium

$80,000.00 or above – 15% Employee Contribution of Premium

The formula used to calculate your base salary for health insurance premium contribution is Regular rate X bi-weekly hours X weeks per year / 2 X .9615 (this adjustment recognizes temp layoff days).

Any questions regarding the payroll health insurance premium deduction change should be directed to your agency payroll personnel.

Additionally, on July 1, 2010, the State Employee Health Commission (SEHC) will begin implementation of a health credit premium program that will allow employees to participate in a health incentives developed by the SEHC that would result in state paying a greater share of the employee premium. More information will be provided when available.

Please note: This changes are for the employee portion of the health insurance premium. There will be no changes to the dependent premium cost allocation.