Insurance Question
Cat
28 Posts
One of my employees is under our Cafeteria Plan under Blue Saver. (1st 1700.00 is paid by employee and then insurance will pay 100 percent after that) Our open enrollment was Aug. 1st and he signed up for this plan.
Now it is his wife's open enrollment and she wants him to drop coverage with us and put him on her plan. Is this a qualifying event for him to drop our coverage and get onto hers. And if so, why?
I am really confused. I am getting answers both ways. My broker says if you follow the rules for qualifying event, this is not one for him to get off our insurance.
Her Plan Administrator is saying that this does qualify for him to drop us and get on theirs.
Thanks in advance for any and all input!!
Now it is his wife's open enrollment and she wants him to drop coverage with us and put him on her plan. Is this a qualifying event for him to drop our coverage and get onto hers. And if so, why?
I am really confused. I am getting answers both ways. My broker says if you follow the rules for qualifying event, this is not one for him to get off our insurance.
Her Plan Administrator is saying that this does qualify for him to drop us and get on theirs.
Thanks in advance for any and all input!!
Comments
If, however, she is only NOW eligible for coverage by her employer (which would mean she either just started a job or went from part-time to full-time) then that would be a qualifying event.
Under a Section 125 Plan you can NOT drop coverage just for any reason, it has to be tied to a Qualifying Event as required by the IRS.
If there was NOT a qualifying event, his options are: 1) to continue with his health insurance and not enroll on hers, or 2) to continue with his health insurance AND enroll in hers.
Thanks for your help.
Thanks, and I wish everyone Happy Holdiays!
It could be an event, but more info needs to be known and need to know how your document reads.
E Wart