University of Iowa employees can receive University Credits based on the benefits they elect. Through University Credits, the university may contribute funds to an employee’s health care flexible spending account (FSA). If applicable, Credits are applied to the employee’s before-tax cost for health insurance, dental insurance, group life insurance, voluntary term life insurance, and accidental death and dismemberment (AD&D). Unused credits automatically roll into a health care FSA.

If an employee waives health insurance through the university and is not enrolled in another group health plan coverage that provides minimum value as defined in the Affordable Care Act (ACA), the maximum amount of University Credits (General Credit and Shared Savings Credits) that can roll into a health care FSA is $500 per calendar year. 

This is a legal requirement to comply with ACA regulations. Group health coverage is sponsored by your (or your spouse’s or parent’s) employer. To confirm that your plan meets the minimum value standard, review the plan’s Summary of Benefits and Coverage (SBC) or check with your plan administrator.

An employee who waives university coverage

Employee #1 2025 insurance elections:

Employee #1 waived both health and dental insurance. Since the employee was not already on a UI Dental plan, they will receive a monthly $25 shared savings credit. The employee has no out-of-pocket pre-tax premium costs, so the total credit amount remains $155, automatically defaulting into a Health Care Flexible Spending Account.

$155 (total credits) - $0 (Employee #1 benefit costs)  = $155 in credits that will default into a health care FSA monthly or $1,860 for the year. 

Please note when waiving coverage:

• When waiving health insurance: If the employee does not answer the minimum value coverage question when working their enrollment event in Employee Self-Service, the maximum amount of credits they will receive is $500 for the calendar year.
• When waiving dental insurance: When an employee waives dental insurance, they must complete the question of whether the employee is covered under another UI Dental plan when working their enrollment event in Employee Self-Service. If this question is unanswered, the employee will not receive the $25 shared savings credit, even if another UI dental plan does not cover them. In addition, if an employee is covered under another UI dental plan (i.e., a spouse/partner, parent), the $25 shared savings credit will not apply. 

An employee with UIChoice/Dental II Single Coverage

Employee #2 - 2025 insurance elections:

Employee #2 did not use all their remaining general and shared savings credits to purchase other benefits; the remaining credits defaulted into their Health Care Flexible Spending Account (FSA) automatically.

$130 (total credits) - $90 (Employee #2 benefit costs)  = $40 in credits ($480 annually) that will default into a health care FSA monthly.

An employee with UISelect/Dental II single coverage

Employee #3 - 2025 insurance elections:

Employee #3 did not use ANY of their general and shared savings credits to purchase other benefits; the remaining credits defaulted into their Health Care Flexible Spending Account automatically.

$130 (total credits) - $0 (Employee #3 benefit costs)  = $130 in credits that will default into a health care FSA monthly. 

An employee with UIChoice/Dental II (employee + spouse) coverage

Employee #4 - 2025 insurance elections:

Employee #4 benefits elections are over the number of credits they received. The credits are always applied toward pre-tax insurance premiums first. 

$453.40 (Employee #4 benefit costs) - $130 (total credits)  = $323.40 for monthly pre-tax benefit costs for Employee #4. 

• If employee #4 had chosen UISelect for their health plan, it would look like this:
  • UISelect Coverage (Employee + Spouse ) = $320/month.
  • Total benefit costs with UISelect would be = $342.40
  • $342.40 - $130.00 in credits = $212.40 for pre-tax benefit costs.

An employee with UISelect (employee + child) and waiving dental coverage

Employee #5 - 2025 insurance elections:

Employee #5 benefits elections are over the number of credits they received. The credits are always applied towards pre-tax insurance premiums first. Please note that the Spouse/Dep Life insurance is an after-tax deduction, so credits will never apply to that benefit.

$274.00 (Employee #5 benefit costs) - $8.60 (Spouse/Dep Life) = $265.40 (pre-tax benefit costs) 

$265.40 (pre-tax benefit costs) - $155 (credits) = $110.40

$110.40 (total pre-tax benefits after credits) + $8.60 (after-tax for spouse/dep life election) =  $119.00 total deduction for benefits. 

• If employee #5 had chosen UIChoice for their health plan, it would look like this:
  • UIChoice Coverage (Employee + Child) = $352/month.
  • The total benefit costs with UIChoice would be = $365.00
  • $365.00 (total benefit costs) - $8.60 (Spouse/dep Life) = $356.40 (pre-tax benefit costs) 
  • $356.40 - $155.00 in credits = $201.40 for pre-tax benefit costs + 8.60 (after-tax deduction) = $210.00 total deduction for benefits.

An employee with UIChoice and Dental II (family) coverage

Employee #6 - 2025 insurance elections:

Employee #6 benefits elections are over the number of credits they received. The credits are always applied towards pre-tax insurance premiums first. Please note that the Spouse/Dep Life insurance is an after-tax deduction, so credits will never apply to that benefit.

$504.60 (Employee #6 benefit costs) - $8.60 (Spouse/Dep Life) = $496.00 (pre-tax benefit costs) 

$496.00 (pre-tax benefit costs) - $130 (credits) = $366.00

$366.00 (total pre-tax benefits after credits) + $8.60 (after-tax for spouse/dep life election) =  $374.60 total deduction for benefits. 

• If employee #6 had chosen UISelect for their health plan, it would look like this:
  • UISelect Coverage (Employee + Family ) = $343/month.
  • The total benefit costs with UISelect would be = $385.60
  • $385.60 (total benefit costs) - $8.60 (Spouse/dep Life) = $377.00 (pre-tax benefit costs) 
  • $377.00 - $130.00 in credits = $247.00 for pre-tax benefit costs + 8.60 (after-tax deduction) = $255.60 total deduction for benefits.