Cash Options
If you already have qualifying health or dental coverage through another source, such as a spouse, domestic partner or parent, you can decline your state-sponsored coverage and receive cash instead. This is called a Cash Option. Cash Options give you cash in lieu of state-sponsored coverage.
There are two Cash Options: CoBen Cash Option and FlexElect Cash Option (Non-CoBen). They work the same way, but which one applies to you depends on your bargaining unit or employee designation.
Who Can Enroll?
Your bargaining unit or employee designation determines whether your Cash Option is available through CoBen or FlexElect.
Permanent Intermittent (PI) employees can enroll if they meet all these conditions:
- You have qualifying group health and/or dental coverage through another source.
- You’re eligible for state health and/or dental coverage.
- You have a PI appointment that is effective during the applicable control period.
- You are credited for at least 480 hours during the applicable control period.
Which One Applies to You
-
CoBen Cash Option covers excluded employees and Bargaining Units 2, 7, 8, 16, 17, 18, and 19.
-
FlexElect Cash Option covers Bargaining Units 1, 3, 4, 5, 6, 9, 10, 11, 12, 13, 14, 15, 20, and 21.
If you’re not sure which bargaining unit or designation applies to you, contact your departmental personnel office.
CoBen Cash Option
If you decline both state health and dental coverage, you will receive $155 a month. If you decline health coverage only, you will receive $130 a month. There’s no cash payment for declining dental only. Cash Option payments are not available in lieu of vision coverage. Vision coverage cannot be declined for cash.
CoBen Cash is included in your regular paycheck and is subject to the same payroll taxes as your regular salary. The payments are reported on your W-2 for the tax year you receive them. CoBen Cash payments are not considered compensation for retirement purposes.
FlexElect Cash Option (Non-CoBen)
If you decline both state health and dental coverage, you will receive $140 a month. If you decline health coverage only, you will receive $128 a month. If you decline dental only, you will receive $12 a month. Cash Option payments are not available in lieu of vision coverage. Vision coverage cannot be declined for cash.
FlexElect Cash is included in your regular paycheck and is subject to the same payroll taxes as your regular salary. The payments are reported on your W-2 for the tax year you receive them. FlexElect Cash payments are not considered compensation for retirement purposes.
What Counts as Qualifying Coverage
Your other health coverage must meet these requirements:
- The coverage must be offered through an employer or employee organization. Individual coverage or coverage you purchase on your own does not qualify. This includes Covered California, Medi-Cal, Medicare and TRICARE.
- Exception: Rank-and-file employees in Bargaining Unit 2 may use TRICARE to qualify for the CoBen Cash Option.
- The plan must meet the Affordable Care Act’s minimum value standard, meaning it covers at least 60% of allowed costs. All CalPERS health plans meet this standard. If your other coverage is through CalPERS or a similar employer-sponsored plan, it likely qualifies.
How to Enroll
Contact your departmental personnel office to confirm your eligibility and complete the appropriate Cash Option Enrollment Form.
If you are currently enrolled in the Cash Option and want to continue next year, you do not need to do anything unless you are a PI employee.
If you are a PI employee and you want to continue receiving the Cash Option next year, you must re-enroll during the Open Enrollment period.
For more information, including current handbooks and flyers for both programs, visit the CoBen and FlexElect Bookshelf.
