Policy/Memo 151

Number: Policy Memo 151
Date Issued: October 17, 2025
Subject: Military Leave for New York State Employees

PURPOSE:

Memorialize the New York State Health Insurance Program's (NYSHIP) policy regarding New York State employees placed on military leave.

BACKGROUND:
In a Memorandum of Understanding (MOU) between the State of New York and the various unions representing State employees, certain benefits for State employees placed on military leave have been agreed upon by the parties. The MOU, first published in 2001, has been renewed annually. The MOU section relevant to the New York State Health Insurance Program (NYSHIP) reads:

"The provisions of [union collective bargaining] agreements shall be extended beyond the negotiated 12-month limit for an employee who continues to be or who will be federally activated or activated by the Governor for military service any time on or after September 11, 2001.

Contribution-free dependent health insurance coverage that has been extended beyond the 12-month limit will end at such time as the employee returns to pay status or fails to resume State employment in a timely fashion, or [end of the MOU term], whichever occurs first."

The MOU states any employee called to active duty by the Governor of New York State or the federal government, including all branches of the United States military, are eligible to continue dependent coverage at no cost to the employee for the duration of their active duty. Since the inception of the benefit, this has been interpreted as no-cost family coverage to the employee. The duration of the leave is not bound by a set time limit (e.g., 12-months as stated in union contracts); the employee qualifies for no-cost family coverage until they return from leave or separate from State service. No-cost family coverage could end upon the expiration of the MOU; however, the MOU has been renewed annually since its inception. Should the MOU not be renewed, this memo will be revised.

Regarding employees enrolled in individual coverage, the State cancels coverage for those employees, rather than force employees to incur premiums when eligible for health insurance through the military. However, the State understands employees placed on State active duty may not be offered health insurance though the military. Therefore, the Employee Benefits Division (EBD) has elected to allow employees with individual coverage, at their own discretion, to continue their NYSHIP coverage during a period of military leave by submitting a written request to their HBA to reactivate coverage and paying employee share premium charges.

POLICY:
When a health benefits administrator (HBA) is provided with a copy of military orders confirming an employee was placed on active military duty by the federal government, including all branches of the Unites States military, or by the Governor of New York State, the HBA must write “Enrollee is on active duty by order of the federal government or Governor of New York State” in the comment section of NYBEAS.

When this comment appears in NYBEAS, along with a processed appropriate military leave transaction, EBD will update the NYBEAS record to allow for no-cost NYSHIP coverage for those enrolled in family coverage. When the comment applies to an employee enrolled in individual coverage and is accompanied by a reactivation of NYSHIP benefits, EBD will ensure the employee share premium rate is charged to the employee during the leave.  Whether enrolled in family or individual coverage, the enrollee will be responsible for the full share of premium while on military leave if no comment is left in NYBEAS indicating they are on active military duty.