3.4.3 Cash In Place Of Medical Coverage


Some employees who have medical coverage in addition to the medical coverage offered by , may receive cash in lieu of medical coverage from Wayne State University. Employees holding positions represented by the American Federation of State, County and Municipal Employees, Local 1479 are eligible to receive $45 monthly in place of medical insurance. Non represented Personnel, and employees holding positions represented by the Professional and Administrative Union, U.A.W., Local 1979 or the American Association of University Professors are eligible to receive $60 per month in lieu of medical insurance.


Written proof of alternative medical coverage must be submitted to Benefits Administration to be eligible for the cash benefit. Employees wishing to reinstate medical coverage with Wayne State are subject to the normal plan waiting periods, with the exception of those forced to reinstate medical coverage due to the death of, or divorce from the individual providing medical coverage.

Cash benefits are paid in twenty-four (24) equal installments each year for twelve (12) month employees and eighteen (18) equal installments for nine (9) month employees.

Cash in place of medical coverage is considered taxable, and is subject to FICA, Federal, State and City tax. This money is not used when calculating University Retirement contribution or the amount of any supplemental life insurance which an employee may have.





  1. Obtain written proof of alternate medical coverage.

NOTE: For example, adequate proof could be a letter from the employer who carries employee on medical plan.

  1. Complete Election of Monthly Payment in Lieu of Participation in Group Medical Insurance, form 748.

  2. Forward form and written proof of alternate medical coverage to Benefits Administration.

Benefits Administration

  1. Process forms

  2. Distribute Notice of Staff Benefits Change, form 785, to Payroll and employee.