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Health Insurance Information 

2014 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 over age 26, there is a value that must be added to the employee’s taxable salary when reporting income earned on the annual W-2.  This monthly 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

$441.36

$882.71

$1,036.55

BC/BS IOWA SELECT

1

2

3 or more

FAMILY

$439.68

$879.35

$1,033.24

WELLMARK BLUE ADVANTAGE

1

2

3 or more

FAMILY

$263.29

$526.58

$618.73

WELLMARK BLUE ACCESS

1

2

3 or more

FAMILY

$273.58

$547.17

$642.92

DENTAL

1

2

3 or more

FAMILY

$30.73

$49.16

$49.16

 


If the child is over age 26 and a tax dependent, there is no additional income applied to the employee’s taxable salary.  The Benefits Office will send you a form to verify your dependent's status and continued eligibility to remain on your insurance.  You must verify with the University Benefits Office annually that 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 10/13