Cash in Lieu of Medical Insurance

You have the opportunity to decline medical insurance through Wayne State University and be paid an additional $50 per pay (except on the two "no-deduct" pays each year) in lieu of medical insurance (Graduate Assistants receive $30 per pay).

To be eligible, you must have written proof of other medical insurance. Your other medical coverage cannot be Medicare, COBRA, or your spouse's Wayne State University insurance.

How to enroll in the Cash in-lieu of Medical Insurance benefit:

  1. Obtain written proof of current health care coverage. The best proof is a letter from the employer who insures you under their health insurance plan. For example, a letter from your spouse's employer stating you are currently covered under their health insurance plan. The only exception to this rule is for Canadian citizens covered by OHIP, in which case a copy of the OHIP card and the completed waiver are all that is necessary.
  2. Complete and sign a Cash in Lieu of Medical Form
  3. Submit the written proof and completed form to the HR Service Center just as if you were enrolling in medical benefits. Same deadlines apply. 

Both items must be received and approved by the HR Service Center within the deadlines. A copy of an insurance I.D. card is not sufficient proof of other coverage (except for Canadian citizens covered by OHIP). Upon approval, the cash payment in lieu of medical insurance will be scheduled for the next available pay check date; there will be no retroactive payments. If you later wish to establish coverage, except for death of or divorce from the individual covering you under their plan, you will be subject to the selected plan's normal enrollment and waiting periods.

Receiving your Cash in-lieu of Medical benefit:

As a taxable benefit, it is subject to FICA, federal, state, and city tax. The amount deducted for taxes depends on individual circumstances. We are unable to provide individual calculations prior to the actual payment.

Your pay stub will show a negative $50 ($66.67 for 9-month employees) under the deduction column. Since this is being added to your pay, it is a negative deduction. Your gross pay will increase by $50. Your taxes will increase because the $50 payment is taxable. After the taxes are deducted from the $50, the balance of the $50 is added to your net pay.