Corresponding with:

OSR Policy 300.7 Direct Costs: Personnel

Procedure Statement

Research Administration Glossary at Carolina

Health insurance estimations are based on the percentage of effort the employee will work on a project and can differ depending on the classification of the UNC-CH employee.

Note: Because health insurance covers a 12-month period, no health insurance charges are necessary for a 9-month employee working in the summer. Thus, it is best to use the annual health insurance rates rather than monthly rates when calculating benefits.


I. Estimating Health Insurance — EPA and SPA employees (fulltime, permanent), Post docs, qualifying Graduate and Undergraduate students, and Part-time employees:

1. First, determine the employee classification annual health insurance rate.

2. Then multiply the applicable premium times the percent of proposed effort.

For example: A fulltime employee with 30% proposed effort.
$4,293.00 x .30 = $1,287.90, rounded to $1,288.

The result (here, $1,288.00) is the estimated amount for health insurance for the proposed percent of effort.

II. Estimating Health Insurance — Clinical faculty and licensed physicians eligible for the Physicians & Associates Supplement.

1. For each qualifying individual, add $1,690 to the applicable annual amount ($4,293.00).

$1,690 + $4,293 = $5,983

For example: A full time MD who will give 45% effort on a grant.

.45 x $5,983 = $2,692.35 estimated amount for health insurance based on proposed percent of effort.

Revision History

The policies in the Office of Sponsored Research Policies & Procedures Manual supersede any OSR policies, procedures and appendices previously included in the University Business Manual, a publication of UNC Chapel Hill’s Division of Finance.