GIC to implement reduced waiting period July 1; agencies must collect missed employee premiums

Erica Chabelli, deputy executive director of the Group Insurance Commission (GIC), told coordinators at a GIC webinar that a provision in the FY2024 budget requires a reduced waiting period (RWP) for eligible new hires, effective July 1, 2024. "If you are a new employee with the Commonwealth and you start on the first of the month, then your benefits will be effective on that very first day of the month beginning July 1," Chabelli said.

The change shortens the average waiting period for coverage from about 73 days to roughly 15 days—an approximate 80% reduction, the GIC presentation showed. Chabelli and presenters emphasized that employees hired before July 1 remain subject to the existing 60-day minimum waiting period with no exceptions; hires whose effective date is any day other than the first of the month will have coverage effective the first of the following month.

Why it matters: the RWP is intended to eliminate gaps in coverage for incoming state employees, but it also shifts collection and reconciliation duties to agencies. Paul Murphy, director of operations at GIC, told attendees that GIC will stop billing individual employees for missed payroll deductions and that agencies will be responsible for collecting retroactive employee-share premiums. "We will no longer be billing employees," Murphy said. Instead, beginning in August agencies will receive an adjustment roster attached to their monthly invoice showing amounts owed retroactively for July enrollments and other adjustments.

Operational details coordinators must know: new-hire records must be entered into the Magic system; doing so triggers a registration email to the new employee (the myGIC link portal) and gives the member 21 days to elect benefits. If a new hire does not receive a registration email within 10 days of their start date, coordinators should have the employee contact the agency benefits coordinator. New hires can be entered into Magic as early as 14 days before the hire date or up to 7 days after the hire date.

Billing and payroll implications: agencies will continue to deduct premiums a month in advance for ongoing employees. Because new hires may be enrolled after the agency’s existing monthly invoice is issued, agencies will need to collect missed premiums shown on the adjustment roster (GIC will list the underpayments and overpayments). Agencies remain responsible for paying the full invoice to GIC and then pursuing collection or refund as appropriate with their employees; GIC will not bill terminated employees for missed deductions.

Eligibility clarifications given on the call included that temporary employees employed 90 days or less are not eligible for GIC benefits; those employed more than 90 days may be eligible. Transfers of employees from one GIC agency to another follow the existing transfer process and are not altered by RWP.

Rulemaking and next steps: Chabelli said GIC’s updated regulations were voted on at the GIC board meeting on May 16 and that an administrative bulletin and further guidance will be issued in advance of July 1. Coordinators were urged to obtain Magic access (magic.help@mass.gov) and to review new reports and the billing calendar in Magic ahead of implementation.

What happens next: GIC said it will distribute the webinar recording, slides and a compiled Q&A to coordinators next week and that new Magic functionality tied to RWP will begin appearing on June 7. The administrative bulletin and mass.gov coordinator tools will provide further step-by-step instructions for agencies.