Drop Kids/wife from Group Coverage After Open Enrollment?

[yorkriver1]

The restriction on this is typically from plans that are pre-tax to employee through POP/Section 125. Tax favored status can be revoked if EE's are allowed to go in/out of plan other than through qualifying events.

Most employer groups of any size are going to have POP in place. Any current known exceptions?

Just got a referral from someone I helped get less expensive insurance for their kids at open enrollment. The referral will most likely be disappointed, as ER 99% won't allow dropping family until next open enrollment. If I find out the ER has a POP and doesn't know the rules, I still won't write the employee's family, unless I find a solid exception.

 

[leevena]

The restriction on this is typically from plans that are pre-tax to employee through POP/Section 125. Tax favored status can be revoked if EE's are allowed to go in/out of plan other than through qualifying events.

Most employer groups of any size are going to have POP in place. Any current known exceptions?

Just got a referral from someone I helped get less expensive insurance for their kids at open enrollment. The referral will most likely be disappointed, as ER 99% won't allow dropping family until next open enrollment. If I find out the ER has a POP and doesn't know the rules, I still won't write the employee's family, unless I find a solid exception.

Sorry, but I am a little confused by your post so my reply may be off a little bit. But an employer cannot stop an employee from changing their coverage. The pre-tax deduction will remain. Depending on the timing, the amount of the pre-tax deduction, and the cost savings of the other option, it may still be worthwhile for the employee. Just pencil it out.

 

[yorkriver1]

Well, moot point, just spoke to prospect, open enrollment now, 3/1/15 group renewal date. Thanks!