Question
undefinedWhat is the name of your state? I live in Louisiana. My husbands company has United Health Care. We have had family coverage through his employeer for several years. He pays a small portion for himself and a large amount for the dependent coverage on his plan.
I have health insurance through my company that pays for me. We have tried to cancel the dependent coverage on his plan recently and he was told that he is not able to do this since the open enrollment time has passed.
We pay over $10,000 a year for coverage through his plan and we can not afford to continue as it is a financial burden. Is there a law that says we can only cancel during open enrollment ? I spoke with the Human Resource Director of his company and she explains that because it is a cafateria plan she is unable to make these changes even though it is a financial burden and the only way they can make a change to his plan is if there is a job change. She also said that it was a law enforced by the IRS.
Thank you
Answer
Your HR Director is exactly correct. The law DOES say that you can only cancel during open enrollment or within 30 days of a qualifying event (birth, adoption, marriage etc.) This is part of Section 125 of the IRS code and it is strictly enforced.
Financial burden or not, you cannot legally drop the dependent coverage until the next open enrollment period.
Answer
If you're going to carry your child on your plan, that might be considered a qualifying event**************.. ask them! Ask if he shows other coverage thru his spouse for his dependent if he can remove the coverage without waiting for the next open enrollment.
Although if your child is not currently on your plan, you can't probably just go and add him/her - you too will have to wait until the next open enrollment in 2005.
good luck
Answer
No, placing a child on the other parent's insurance is not considered a qualifying event under the law.
What is and is not considered a qualifying event is regulated at the Federal level - it is not the company's decision.
Answer
ok, then divorce situations must be different because my boyfriend was court ordered to carry his kids, and their mom was able to drop them because he picked them up.
I also dropped my ex-husband and all I had to do was say why - I didn't need proof, etc... I just filled out the form said cancel his coverage and they did it like the next week
That is very interesting
Answer
Ablessin, yes, a divorce is considered a qualifying event and gives you a 30 day window to make changes.
Also, Section 125 plans (the OP referred to it as a cafeteria plan) are more strictly regulated by law than plans that are not under Section 125. If the plan is NOT under Sec. 125, the employer has a lot more freedom to allow employees to make changes when and if they want to.