Summer Prepay Deductions: Continuing Your Insurance Coverage During the Summer Months
What are Summer Prepay Deductions?
If you are a 9-month employee who will be returning to UW employment in the fall of 2018, or a 12-month employee who has a contract that does not include work for one or more summer months, then you had additional insurance premiums deducted from your March 30, May 1 and/or June 1 paychecks to continue your insurance coverage through the summer months. These additional insurance premiums, taken along with your regular monthly insurance deductions, are referred to as ‘summer prepay deductions.’
You must be expected to return for the fall semester or must continue employment in a summer service/summer session appointment to have benefits coverage continue during the summer contract break.
If you did not have prepayments taken and are returning in the fall, contact your human resources office immediately. If your insurance premiums are not collected through the summer prepay deduction process, you must be set up in benefit billing by your human resource office (benefit administrator) in order for a bill to be generated for you.
Once your bill is generated, you must remit timely premium payments to continue your insurance coverage. If you do not take the steps to set up benefit billing, a bill will not be generated. If you do not pay for your insurance, it will be cancelled due to non-payment.
Verifying Your Summer Prepay Deductions
Check your spring earnings statements to verify if you had summer prepay deductions taken from your paychecks. Summer prepay deductions appear as a lump sum with all pre-tax deductions added together and identified as ‘PREBTX’ and all post-tax deductions added together under ‘PREATX.’ PREBTX stands for before tax or pre-tax and ‘PREATX’ stands for after tax or post-tax.
In the fall, your regular insurance premium deductions will resume as payroll deductions starting with your October 1 paycheck.
What Happens if You Have a ‘Status Change’ During the Summer?
Are you getting married this summer, adopting a baby, terminating employment? If you anticipate a status change during the summer, contact your human resources office immediately about the impact to your insurance benefits.
For example, if you are getting married and need to change from single to family health insurance coverage, you should complete a new health insurance application within 30 days of the date of your marriage. Your new spouse (and family) will be covered as of the date of the marriage. The new rate will be deducted from your prepayments according to the new level of coverage, and you may have to pay an additional portion of the premium if the coverage increases.
If your anticipated fall 2018 employment status changes, refunds may be issued for premiums paid beyond your coverage end date. Your coverage will end at the end of the month in which your employment terminates.
If you will be terminating employment, and will not return in the fall, contact your human resources office immediately to determine when your insurance coverage will end.
If you have questions, contact your human resources office.
Source: UW Service Center