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The Opt-out Program

Program Overview

The Opt-out Program allows eligible employees who have other employer-sponsored group health insurance to opt out of NYSHIP coverage in exchange for an incentive payment. This incentive payment is:

  • $1,000 for opting out of Individual coverage or $3,000 for opting out of Family coverage;
  • prorated and credited to your biweekly paycheck throughout the year and
  • payable only when you are eligible for NYSHIP coverage at the employee share of the premium

Eligibility Requirements

To participate in the Opt-out Program, you must:

  • be a member of a group eligible for the Opt-out Program*
  • have been enrolled continuously in NYSHIP since either April 1, 2023 or your first date of NYSHIP eligibility (if that date is later than April 1)
  • have other employer-sponsored group health insurance coverage

* Employees who are represented by UUP and employees of Participating Employers (PEs) are not currently eligible to participate in the Opt-out Program.

How to Enroll

If you meet the eligibility requirements and want to opt out of NYSHIP coverage for the upcoming plan year, you must:


Additional information about the Opt-out Program, including answers to Frequently Asked Questions, can be found in the following publications:

Planning for Option Transfer 2024

Health Insurance Choices for 2024

General Information Book (NY Active)

General Information Book (PE Active)

Please Note: This is a general overview only. If you are thinking about enrolling in the Opt-out Program for the 2024 plan year, it is strongly recommended that you review the related sections in the above-listed publications prior to making your final decision.