Policies and Procedures
Procedure 1112.4 – Paying Graduate Student Health Insurance Program Insurance Premium
May 16, 2005
June 30, 2016
June 30, 2016
Associate Provost for Finance and Academic Planning
Executive Director of Campus Health Services
This procedure describes the GSHIP insurance premium payment process and subsequent distribution of charges to the departments.
The Plan Administrator bills the University on a monthly basis for the insurance premium costs of the Graduate Student Health Insurance Program. The University pays the premium from a central clearing account, and a journal entry is processed by Accounting Services to distribute the premium expenses among the departments.
The same sources of funds that provide financial support to the graduate student must also pay the proportionate cost of the health insurance premiums. A summary of the funding sources used and the premium payment process are as follows:
Academic Affairs Budget Code
- Appropriations and General Receipts Supported - Premium expenses are charged to the departmental account. Budget is automatically transferred from central budget code pool to the departmental account to fund expenses.
- Receipt-Supported - Premium expenses are charged to the departmental account.
Health Affairs Budget Code
- Appropriations and General Receipts-Supported - Premium expenses are charged to the departmental account. Expense is automatically reimbursed from central budget pool to the departmental account to fund expenses.
- Receipt-Supported – Premium expenses are charged to the department account.
Contracts and Grants, Overhead Receipts, other Institutional Trust Funds and Special Funds
- Contracts and Grants, Overhead Receipts, other Institutional Trust Funds and Special Funds - Premium expenses are charged to the contract or grant, institutional trust, or special fund account.
Premium expenses for a particular month are prorated among each student’s salary, and non-service award sources of the same month. For example, the premium expenses for the enrollment month of March 1 through March 31 are posted in March and are prorated based on the student’s salary and non-service award sources for the calendar month of March.
The first premium expense posting for the new plan year will not occur until October and will represent the premiums paid for the two-month period from August 1, through September 30. The student’s salary and non-service award sources for the calendar months of August and September will be used to prorate the first premium.
Cost Allocation Process
The cost allocation process will use data from the GradStar System, as well as the Human Capital Management and Accounts Payable systems. The GradStar System will provide data for non-service awards for the Fall Semester allocated over the five month period August through December, and for the Spring Semester allocated over the five month period January through May.
The GradStar data will be combined with monthly data from the Human Capital Management and Accounts Payable systems. The monthly Graduate Student Health Insurance Plan expense transactions will be calculated and then posted in ConnectCarolina. The following example of the calculation is provided:
Spring Semester – student receives a $1,000 fellowship, a $100 trainee stipend and a TA appointment
|Time Period||Spring Semester||March Disbursement||March Payroll|
|Awards/Payments||$200.00 (1/5 of $1,000)||$100.00||$300.00||$600.00|
|Premium Expense posted in ConnectCarolina in March||$63.09||$31.55||$94.64||$189.28|
|Percent of Total||33.33%||16.67%||50.00%||100.00%|
Forms and Instructions
Separate accounts are used when the payment to the graduate student represents a salary (e.g. 515540) and when the payment to the student represents a fellowship (e.g.569220).
- 1112.1 - Verifying Student Eligibility for the Graduate Student Health Insurance Program (GSHIP)
- 1112.2 - Enrolling in the Graduate Student Health Insurance Program (GSHIP)
- 1112.3 - Paying Graduate Students
June 30, 2016: Reviewed for accuracy
July 29, 2015: Updated system information.
July 23, 2014: Updated timeline for posting premium expenses, cost allocation process.
July 8, 2013: Updated dates in Contracts and Grants section.
July 20, 2011
July 9, 2010
June 30, 2009