Overview
Under ESR, units are required to affirmatively report any new full time temporary hires using the ESR Eligibility Certification eForm (updated February 8, 2023) but do not have to track or report other types of hires or employee schedules. A full time temporary employee is hired to work at least 30 hours per week as defined by the facts and circumstances of the position. Other employees may be identified as eligible and offered coverage based on tracking of hours worked.
Eligibility for medical benefits under ESR is determined at the university level, across all jobs worked. In addition, for many employees, eligibility during a given 12-month stability period will have been determined by hours worked in the previous year, which may not correspond to their current employment. The current employing unit(s) is responsible for the university contribution to medical benefits for employees who are offered coverage and subsequently enroll. If an employee works multiple jobs, the university contribution will be divided among employing units proportional to the employee’s earnings from each unit on a per-paycheck basis.
Process for Reporting Full-Time Temporary Hires
Under the policy, any unit that newly hires a full time temporary employee must complete the ESR eligibility certification form and return it as instructed on the form within 60 days of hire. An employee newly hired into a full time temporary position will be eligible for medical benefits as of the first of the month following receipt of the ESR eligibility certification form, as long as they are receiving biweekly paychecks (otherwise, the first of the month following the first paycheck). This form is intended to be completed for new hires who will be working full time throughout their employment, rather than variable hour employees who may fluctuate between part time and full time.
An employee who has another U-M position or is returning to U-M following a break in service of less than 26 weeks may be considered an ongoing employee who is subject to measurement. Departments should not use the ESR eligibility certification form in this situation. Further guidance is available by calling the Shared Services Center at (734) 615-2000 to request an ESR eligibility evaluation.
A full time temporary hire meets all of the following criteria:
- At the time of hire, employee is expected to work 30 or more hours per week consistently for the duration of the appointment
- Position expected to last three months or longer
- Position is not seasonal (lasting six months or less and beginning in the same part of each calendar year)
In cases where a part-time temporary employee is increased to full time, the temporary employee’s hours will be tracked during a measurement period to determine future eligibility.
New Medical Benefits Eligibility Under ESR
There are different ways that an employee could potentially meet the 30 hour per week threshold to become eligible for medical benefits under ESR. All eligible employees will be notified at their University of Michigan email address and receive information on how to enroll.
Medical Benefits Eligibility for New Hires Under ESR
| Work schedule |
Type of position |
How many hours worked? |
Over what period of time? |
When does eligibility begin? |
When does eligibility end? |
| One full-time position |
Temporary position (not seasonal) |
30 hours per week consistently |
For the duration of the appointment, which is more than 3 months |
First of the month after receipt of the ESR eligibility certification form, as long as the employee has received their first paycheck (otherwise, first of the month following first paycheck) |
End of appointment or applicable stability period |
| One position, hours vary from week to week |
Regular or temporary position |
Average of 30 or more hours per week |
12 months from the date of service (initial measurement period) |
30 days after the measurement period ends |
End of 12 months (initial stability period) |
| More than one position |
Any combination of regular or temporary positions |
Average of 30 or more hours per week total |
12 months from the date of service (initial measurement period) |
30 days after the measurement period ends |
End of 12 months (initial stability period) |
Notes: Units should not use the ESR eligibility certification form for employees who are returning to U-M after a break in service of less than 26 weeks. Administrators can receive further guidance by contacting the Shared Services Center at (734) 615-2000 to request an ESR eligibility evaluation.
Extended Medical Benefits Eligibility Under ESR
Certain employees may also be able to extend eligibility for medical benefits through the end of the calendar year or current stability period under ESR.
| Type of change |
New position details |
What happens to eligibility under ESR? |
When does eligibility under ESR end? |
| Reduction in hours or change to benefits-ineligible position |
In the absence of ESR, ineligible for medical benefits |
Maintain eligibility (will receive a confirmation statement mailed to their current address on file) |
December 31 of the current or following year, depending on when qualifying hours were worked |
| Break in service less than 26 weeks (not longer than previous employment), returning to benefits-ineligible position |
In the absence of ESR, ineligible for medical benefits |
Resume eligibility (will be notified at their U-M email address with instructions on how to enroll) |
December 31 of the current or following year, depending on when qualifying hours were worked |
Tracking Employee Hours to Determine Eligibility (Measurement Period)
To make sure that all non-seasonal employees who work at least 30 hours per week are offered medical coverage under the policy, the Benefits Office tracks hours worked over the course of a measurement period for all employees. For new employees, the initial measurement period is the 12 months following the date of service. For ongoing employees, the standard measurement period is October 15 to October 14. A new measurement period starts every year or after any break in service that lasts longer than 26 weeks (or longer than the employee’s previous employment at the university).
Period of Eligibility (Stability Period)
Employees who work 30 or more hours per week during a measurement period receive an offer of medical coverage from the university. Eligibility for medical benefits lasts for the next 12 months, as long university employment continues, regardless of actual hours worked during that time. This period of eligibility is called the stability period. For new employees, the initial stability period starts 30 days after the end of the measurement period. For ongoing employees, the standard stability period is the calendar year.
Special Note on Hiring Retirees
Retirees who come back to work as temporary employees are treated the same as other employees under ESR. As a result, they may become eligible for health benefits under ESR, particularly if they return to employment within 26 weeks of retirement.
Important: A retiree may not elect to continue retiree health benefits if he or she receives an offer of coverage under ESR.
When a retiree becomes eligible under ESR, the Benefits Office will convert the retiree health plan to ESR coverage effective the date of service or eligibility and mail a confirmation statement regarding the change. The monthly health plan premium under ESR may be higher or lower than the retiree premium, depending on individual circumstances. Retiree medical benefits will be reinstated when the individual is no longer eligible under ESR, or when he or she stops working. Note: ESR applies only to medical and prescription drug coverage. All other retiree benefits would continue without interruption for an ESR eligible retiree.
For more information,
Special Note on Cost to Departments
Employee charges that go to arrears because of lack of a paycheck or earnings that do not cover deductions will be set up in billing. The department shortcode will become responsible for the employee contribution, in addition to the university contribution, for health plan coverage if there is failure to collect from the employee after three months of arrears notifications.