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Health Insurance Information 

TAXABLE HEALTH AND DENTAL INSURANCE - MERIT STAFF

Children may be covered through the end of the calendar year in which they turn 26.  Coverage for unmarried children who are full-time students or disabled can continue as long as they continue in that status.

The Internal Revenue Service (IRS) has determined that if an employer allows employees to insure dependent children age 26 and above, there is a value that must be added to the employee’s taxable salary when reporting income earned on the annual W-2.  This income is based upon the following table.

 

AGE 26 AND OVER TAXABLE MONTHLY INCOME

 

PLAN

Number of taxable dependents covered
by the insurance plan

 

BC/BS PROGRAM III PLUS

1

2

3 or more

 

FAMILY

$389.88

$779.75

$1,013.68

 

BC/BS IOWA SELECT

1

2

3 or more

 

FAMILY

$388.65

$777.31

$1,010.50

 

WELLMARK BLUE ADVANTAGE

1

2

3 or more

 

FAMILY

$234.16

$468.32

$608.82

 

WELLMARK BLUE ACCESS

1

2

3 or more

 

FAMILY

$243.18

$486.35

$632.26

 

DENTAL

1

2

3 or more

 

FAMILY

$19.58

$39.17

$47.00


If the child is age 26 and above and a tax dependent, there is no additional income applied to the employee’s taxable salary.  You must inform the University Benefits Office annually if this is the case.

Also, please note that if you participate in the Health Care Spending Account program, you will not be able to submit any claims for a dependent age 26 and above unless they are your tax dependent.

Updated 12/11