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Premium Redirection Plan

If you meet the definition of an Employee, as defined by Texas Insurance Code, Chapter 1601, you are qualified to participate in the UT Premium Redirection Plan. Through the Premium Redirection Plan, your taxable income on OASI will be reduced.

The plans for which the employee's portion of premiums can be paid through the Premium Redirection Plan are:

  1. Health (Employee and Dependents)
  2. Dental (Employee and Dependents)
  3. Vision (Employee and Dependents)
  4. Accidental Death and Dismemberment (Employee and Dependents)
  5. Group Term Life (Employee only for the first $50,000 coverage)
  6. Long Term Disability (Employee only)

Please note, Long Term Care (LTC) premiums are not eligible for the premium redirection plan.

What is Redirect?

Redirect is the portion of insurance that reduces an employee's OASI and Withholding gross.

How is it Calculated?

Add: Medical premium
        Dental premium
        Term life up to $50,000 only
        Vision premium
        Accident premium
Less: Premium Sharing
Equals: Redirect

Example:

An employee has the following coverages:

UT Select BCBS HEALTH INSURANCE FOR EMPLOYEE AND CHILDREN
Delta Standard DENTAL HEALTH INSURANCE FOR EMPLOYEE AND FAMILY
TERM LIFE INSURANCE FOR EMPLOYEE AND DEPENDENT
    ($3.92 for $50,000, $18.69 for $292,000, and $2.50 for dependent coverage)
VISION SERVICE PLAN FOR EMPLOYEE AND FAMILY
ACCIDENT INISURANCE FOR EMPLOYEE AND DEPENDENT
DISABILITY INSURANCE FOR EMPLOYEE
LESS PREMIUM SHARING
TOTAL DUE




$567.86
$78.59
$25.11

$18.48
$14.43
$19.17
-$439.45
$284.19

To calculate redirect:

Health:
Delta:
Term Life:
Vision:
Accident:
Premium Sh:


$567.86
78.59
3.92
18.48
14.43
(284.19)
Redirect $243.83


 

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