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Opt Out

What Is It?

The NYSHIP Opt Out program allows eligible employees who have other employer-sponsored group health insurance to opt out of their NYSHIP coverage in exchange for an incentive payment.

The annual incentive payment is $1,000 for opting out of Individual coverage or $3,000 for opting out of Family coverage.

The incentive payment is prorated and credited through your biweekly paycheck throughout the year. Opt-out incentive payments increase your taxable income.

You may enroll in the Opt Out Program during the annual Option Transfer Period. 


2022 Planning for Option Transfer 


How to Apply

If you meet all the eligibility criteria, you may enroll in the Opt-Out program during the annual Option Transfer Period. You must submit a completed Health Insurance Transaction (PS-404) and Opt-out Attestation (PS-409) forms to us to enroll in the Opt-out program. Please note, it is no longer necessary to re-enroll in the Opt-Out program each year. No action is required for current Opt-Out enrollees who are still eligible and wish to remain in the program during the upcoming year. 

Contact Business Services Center – Human Resources Department

Still have questions? Try the BSC Help Center where you can send a question to our support team or search a database of FAQs.

Contact us by email:

Mailing Address:

Business Services Center – Human Resources
1220 Washington Ave
Building 5, Floor 4
Albany, NY 12226-1900

Contact us by fax:

(518) 457-1879