When the employee's total out-of-pocket cost for benefits, is less than the dollar amount of credits, those remaining credits default into a health care flexible spending account for the employee. The employee may designate the remaining credit dollars to a dependent care flexible spending account during the election process. The earnings portion of the employee's paycheck will reflect the credits applied.
General Benefit Credit
Every employee in an eligible position (except house staff and temporary staff) will receive $90 in credits.
Shared Savings Credits
Shared Savings Credits are based on selections of health, dental, and life insurance plans, where applicable.
General Benefit Credit
Each benefits-eligible employee (faculty, Professional and Scientific, and Merit) will receive a $90 per month, up to $1,080 per year, General Benefit Credit.
- Credits may be used to reduce the cost of health and dental insurance, additional life insurance, accidental death, and dismemberment insurance, or to fund a flexible spending account.
- Unused credits automatically roll into a health care flexible spending account or can be designated to a dependent care flexible spending account.
Shared Savings Credits
Depending on the choices a faculty or staff member makes, they may be eligible for Shared Savings Credits which they can use in the same manner as the General Benefits Credits.
- Dental Insurance Credit
Individuals who have dental insurance but are not enrolled in a university dental insurance plan may receive a Shared Savings Credit as an incentive to remain with their current insurance provider. In addition, individuals who elect not to enroll in the university’s dental insurance plan may be provided a $25 per month of Shared Savings Credits.
- Double Spouse Credit
Under the double spouse credit benefit, spouse/partner #1 is the policyholder for both health and dental insurance for the family; spouse/partner #2 is covered under spouse/partner #1 along with the dependent children. Therefore, electing the Double Spouse Credit will result in little or no out-of-pocket premium cost depending on which health plan the employee chooses and no cost for the dental plan.
Double Spouse Credit is only a benefit when electing family coverage. If you only need employee and spouse coverage, there is no benefit to enrolling with the Double Spouse Credit, as each employee may select single health and dental plan at little or no cost.
- Life Insurance Credit
Individuals whose salary is over $25,000 who elect $50,000 in group life insurance receive an additional $40 per month in Shared Savings Credits.
Shared Savings Credits
Depending on the choices a regular benefit-eligible employee makes, they may be eligible for shared savings credits, which they can use in the same manner as the general benefits credit.
- Waiving Dental Insurance Credit
Individuals who have dental insurance but are not enrolled in a university dental insurance plan may receive a shared savings credit as an incentive to remain with their current insurance provider. In addition, individuals who do not enroll in the university’s dental insurance plan may receive $25 per month of shared savings credits. To ensure the employee receives this credit, the employee MUST work the enrollment event and answer the attestation about other coverage. - Group Life Insurance Credit
Individuals whose salary is over $25,000 who elect $50,000 in group life insurance receive an additional $40 per month in shared savings credits.
Waiving health and dental insurance and university credits
If you waive coverage through the University, you must complete an attestation regarding your health insurance status in Employee Self-Service when completing your enrollment.
If you indicate that you are not enrolled in another group health insurance plan that provides minimum value coverage or did not complete your new hire benefits enrollment in Employee Self-Service and answered the attestation, the following will apply:
- You will be eligible for the applicable credits based on your elections; however, the maximum amount of credits that will roll into a health care FSA will be $500 (prorated to $41.66/month) for the calendar year.
- You may also contribute your funds in addition to the $500 you receive in credits during the online enrollment.
- You may also designate credits over $500 to a dependent care FSA.
If you waive health insurance and have coverage through another University of Iowa or another plan outside the university that provides the minimum value coverage, the $500 maximum does not apply. You are still eligible for the full, applicable credits based on your benefit elections.
You must notify University Benefits immediately if your enrollment status in other health insurance changes.
Please note that a spouse or dependent child for whom you seek reimbursement of expenses through the health care FSA must be enrolled in a plan that provides minimum value coverage when the costs were incurred.
Minimum Value Coverage
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.
Double Spouse Credit
Double Spouse Credit is only a benefit when electing family coverage.
Double Spouse Credit (DSC) is a program available to married employees (or domestic partners) who both work for the University of Iowa.
Therefore, electing the Double Spouse Credit will result in little or no out-of-pocket premium depending on which health plan the employee chooses and no cost for the dental plan.
If you only need employee and spouse coverage, there is no benefit to enrolling with the Double Spouse Credit, as each employee may select a single health and dental plan at little or no cost.
Read more about the double spouse credit program and how to apply.
Paycheck Examples
An employee who waives university coverage
Employee #1 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #1 is a regular benefit-eligible employee | Receives the $90 general benefit credit | |
| Health Insurance | Waives coverage. Answered the question about minimum value coverage on another health plan. (if the min value question is not completed, the employee will be limited to receiving a maximum of $500 in credits for the year) |
$0 |
| Dental Insurance | Waives coverage. The employee is not on another UI dental plan and answered the question about other coverage under dental. (if the question regarding the employee's dental coverage is not completed, they will not receive the $25 credit even if they are not covered under another UI dental plan. The credit will also not apply if the employee is enrolled under another UI Dental plan.) |
Receives a $25 shared savings credit. |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | Waive | $0 |
| Accidental Death & Dismemberment Insurance (AD&D) |
Waive | $0 |
| Spouse/Dependent Life Insurance | Waive | $0 |
| Long Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $0 in benefit elections and $155 in credits | ||
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 you 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 - 2024 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #2 is a regular benefit-eligible employee | Receives the $90 general benefit credit | |
| Health Insurance | UIChoice, Employee Only | $86 |
| Dental Insurance | Dental II, Employee Only | $0 |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | Waive | $0 |
| Accidental Death & Dismemberment Insurance (AD&D) |
Waive | $0 |
| Spouse/Dependent Life Insurance | Waive | $0 |
| Long-Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $86 in benefit elections and $130 in credits | ||
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) - $86 (Employee #2 benefit costs) = $44 in credits ($528 annually) that will default into a health care FSA monthly.
An employee with UISelect/Dental II Single Coverage
Employee #3 - 2024 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #3 is a regular benefit-eligible employee | Receives the $90 general benefit credit |
|
| Health Insurance | UISelect, Employee Only | $0 |
| Dental Insurance | Dental II, Employee Only | $0 |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | Waive | $0 |
| Accidental Death & Dismemberment Insurance (AD&D) |
Waive | $0 |
| Spouse/Dependent Life Insurance | Waive | $0 |
| Long-Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $0 in benefit elections and $130 in credits | ||
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 - 2024 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #4 is a regular benefit-eligible employee | Receives the $90 general benefit credit | |
| Health Insurance | UIChoice, Employee + Spouse | $411.00 |
| Dental Insurance | Dental II, Employee + Spouse | $20.10 |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | 1.0 Times Salary | $1.40 |
| Accidental Death & Dismemberment Insurance (AD&D) |
Waive | $0 |
| Spouse/Dependent Life Insurance | Waive | $0 |
| Long-Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $432.50 in benefit elections and $130 in credits | ||
Employee #4 benefits elections are over the number of credits they received. The credits are always applied towards pre-tax insurance premiums first.
$432.50 (Employee #4 benefit costs) - $130 (total credits) = $302.50 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 ) = $316.00/month.
- Total benefit costs with UISelect would be = $337.50
- $337.50 - $130.00 in credits = $207.50 for pre-tax benefit costs.
An employee with UISelect (Employee + Child) and Waiving Dental Coverage
Employee #5 - 2024 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #5 is a regular benefit-eligible employee | Receives the $90 general benefit credit | |
| Health Insurance | UISelect, Employee + Child | $258.00 |
| Dental Insurance | Waiving | Receives a $25 shared savings credit |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | 1.0 Times Salary | $1.40 |
| Accidental Death & Dismemberment Insurance (AD&D) |
100K, Family | $3.00 |
| Spouse/Dependent Life Insurance | Spouse/Dep Life 20/10 After-tax | $8.60 |
| Long-Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $271.00 in benefit elections and $155 in credits | ||
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 towards that specific benefit.
$271.00 (Employee #5 benefit costs) - $8.60 (Spouse/dep Life) = $262.40 (pre-tax benefit costs)
$262.40 (pre-tax benefit costs) - $155 (credits) = $107.40
$107.40 (total pre-tax benefits after credits) + $8.60 (after-tax for spouse/dep life election) = $116.00 total deduction for benefits.
- If employee #5 had chosen UIChoice for their health plan, it would look like this:
- UIChoice Coverage (Employee + Child ) = $335/month.
- The total benefit costs with UIChoice would be = $348.00
- $348.00 (total benefit costs) - $8.60 (Spouse/dep Life) = $339.40 (pre-tax benefit costs)
- $339.40 - $155.00 in credits = $184.40 for pre-tax benefit costs + 8.60 (after-tax deduction) = $193.00 total deduction for benefits.
An employee with UIChoice and Dental II (Family) Coverage
Employee #6 - 2024 insurance elections:
| Election item | election | Cost of benefit |
|---|---|---|
| Employee #6 is a regular benefit-eligible employee | Receives the $90 general benefit credit | |
| Health Insurance | UIChoice, Family | $440.00 |
| Dental Insurance | Dental II, Family | $28.40 |
| Group Life Insurance | $50,000 | Receives a $40 shared savings credit |
| Voluntary Term Life Insurance (VTL) | 1.0 Times Salary | $1.40 |
| Accidental Death & Dismemberment Insurance (AD&D) |
100K, Family | $3.00 |
| Spouse/Dependent Life Insurance | Spouse/Dep Life 20/10 After-tax | $8.60 |
| Long-Term Disability (LTD) | Provided by UI | $0 |
| Health Care Spending Account | Waive | $0 |
| Dependent Care Spending Account | Waive | $0 |
| Total = $481.40 in benefit elections and $130 in credits | ||
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 towards that specific benefit.
$481.40 (Employee #6 benefit costs) - $8.60 (Spouse/dep Life) = $472.80 (pre-tax benefit costs)
$472.80 (pre-tax benefit costs) - $130 (credits) = $317.90
$317.90 (total pre-tax benefits after credits) + $8.60 (after-tax for spouse/dep life election) = $342.80 total deduction for benefits.
- If employee #6 had chosen UISelect for their health plan, it would look like this:
- UISelect Coverage (Employee + Family ) = $339/month.
- The total benefit costs with UISelect would be = $380.40
- $380.40 (total benefit costs) - $8.60 (Spouse/dep Life) = $371.80 (pre-tax benefit costs)
- $371.80 - $130.00 in credits = $241.80 for pre-tax benefit costs + 8.60 (after-tax deduction) = $250.40 total deduction for benefits.