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
• 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, 2025 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:

• Complete and submit an Health Insurance Transaction Form to elect the Opt-out option
• Complete and submit an Opt-out Program Attestation Form to provide information about your other health insurance coverage prior to the Option Transfer deadline

Questions?

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

Planning for Option Transfer 2026

Health Insurance Choices for 2026

General Information Book (NY Active)

General Information Book (PE Active)