Opt-Out Credit

Health Insurance Opt-Out Credit for Retirees

If you are a retiree who is eligible for a state contribution toward your health insurance premium and you have other group health insurance that is comparable to the Texas Employees Group Benefits Program (GBP) health insurance, you are eligible to opt-out of your health insurance and sign up for a monthly Opt-Out Credit.

Eligible retirees can apply the credit toward the premium of certain optional benefits. Full-time retirees can earn up to a $60 credit toward their GBP dental and/or vision insurance premium(s). Part-time retirees can earn up to a $30 credit toward their GBP dental and/or vision insurance premium(s). 

Retirees cannot apply the Opt-Out Credit to Voluntary Accidental Death and Dismemberment (AD&D) insurance unless they return to work at an employer who participates in the GBP and they enroll in the GBP as an active employee.

Opt-Out Eligibility

  • To be eligible for the Opt-Out Credit, full-time and part-time retirees must be eligible for the  state contribution toward their GBP health insurance—100% for full-time employees and 50% for part-time employees.
  • You cannot participate in the Opt-Out Credit if you are not eligible for the state contribution to your health insurance premium. Surviving dependents are not eligible for the Opt-Out Credit.
  • You must be able to certify you have comparable health insurance coverage. Medicare does not count as comparable health coverage; if you have Medicare, you are not eligible for the credit. 

Opting Out: What You Should Know

Remember, your prescription drug benefits are part of your health benefit. If you opt-out of your health plan, you also waive your prescription drug coverage and Basic Term Life Insurance coverage.