Health Option Program (HOP)

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For the following bargaining units: CSEA, MCC, MCU, PEF and UUP

How does the program work?
In calendar year 2002, the Health Option Program (HOP) will give eligible employees in the classified service of the Executive Branch the opportunity to reduce their yearly sick leave accrual rate by three (3) days in exchange for a credit of up to $310.50 that will be applied against the cost of the employee share of their New York State Health Insurance Program (NYSHIP) premiums. Eligible employees must file an election form during the month of November 2001 in order to participate. In the event that the program is renewed in subsequent years, the election period will be November 1 through November 30 preceding each calendar year that the program is available. No single election will be valid for more than one calendar year.

Election to participate in the program is prospective, and applies only to sick leave credits that an employee would otherwise be eligible to earn in the calendar year immediately following each election period. Sick leave credits already accrued cannot be exchanged under this program.

Participating employees, except those in the Income Protection Plan (IPP), will earn sick leave at a reduced biweekly rate in all biweekly pay periods that end on or after January 1 and on or before December 31. For example, in 2002, employees on the Administration payroll cycle will earn sick leave at a reduced rate beginning with the pay period ending January 2. The last pay period in which they will earn sick leave at a reduced rate ends on December 18. For employees on the Institution payroll cycle, the dates will be January 9 and December 25, respectively. Employees in the IPP will be credited with a reduced amount of sick leave on their IPP grant dates that fall during the calendar year.

In exchange, the employee share of a participants health insurance premiums will be reduced by up to $310.50. In each year that they participate, employees will realize this credit via reduced NYSHIP health insurance premium deductions. In calendar year 2002, for employees on the Administration payroll cycle, the first paycheck reflecting the reduced employee health insurance premium will be issued January 2. The last check reflecting the reduced premium will be issued on December 18. For employees on the Institution payroll cycle, the dates will be January 10 and December 26, respectively.

Due to the New Years Day holiday, the administration payroll check that would otherwise have been issued on January 1, 2003 will be issued on December 31, 2002. This will result in 27 administration payroll checks being issued in calendar year 2002. The NYSHIP premium deduction from that check will be covered under HOP for 2003 for employees who elect to enroll if the program is extended for an additional calendar year.

Therefore, all references in this document to the availability of the health insurance contribution credit in the calendar year or the annual cost of NYSHIP premiums in 2002 apply only to premium deductions for the period January 1 through December 18, 2002 for administration payroll employees and January 1 through December 26, 2002 for institution payroll employees.

HOP is a separate program from the Health Care Spending Account program (HCSAccount). The HCSAccount, is subject to a different set of rules. This document addresses ONLY the exchange of sick leave accruals for a credit toward employee health insurance premiums under HOP.

HOP will expire on December 31, 2002 unless the State and employee unions mutually agree to make the program available in subsequent calendar years.

Which employees are eligible to participate?
The program is open to eligible employees in the Administrative Services Unit (ASU), the Operational Services Unit (OSU), the Institutional Services Unit (ISU), the Division of Military and Naval Affairs (DMNA), the Professional, Scientific and Technical Services Unit (PS & T), Rent Regulation Services Unit (RRSU) and to eligible employees designated Managerial/Confidential (M/C). M/C and RRSU employees in the Income Protection Plan (IPP) can participate in HOP under special guidelines described in this document.

What are the eligibility requirements for participation?
In order to exchange sick leave accruals for a credit toward the employee share of NYSHIP health insurance premiums, employees must meet ALL of the following criteria at the time that they elect to enroll in HOP:

Are part-time employees eligible to participate?
Yes. Part-time employees who meet the eligibility criteria described above will be eligible to participate. They must have a sick leave balance of 15 prorated days based on their payroll percentage.

Part-time employees not in the IPP who meet these criteria will forfeit 3 prorated days of sick leave and receive a prorated health insurance contribution credit based on their payroll percentage. Part-time employees in the IPP participate by exchanging 1.5 full-time days of sick leave for a health insurance contribution credit of up to $155.25, regardless of their payroll percentage.

The program will not be available to hourly or per diem employees.

Are employees participating in a Voluntary Reduction in Work Schedule (VRWS) program eligible to participate?
Yes, VRWS participants can participate as full-time employees. If they meet the eligibility criteria described above, they will be eligible to exchange 3 full-time (7.5 or 8-hour) days of sick leave for a credit of up to $310.50. VRWS participants must have a sick leave balance of 15 full-time (7.5 or 8 hour) days at the time they elect to participate.

Can a retiree who has returned to State service participate in HOP?
Retired NYS employees who have returned to work will not be permitted to participate unless they meet all of the eligibility requirements stated above and return to active employee status for health benefits purposes. Re-employed retirees who elect to remain in retiree status for health benefits purposes are not eligible to participate.