Question
I don't know if anyone has come across this situation. I live and work in Texas, but my corporate offices are in New Orleans, LA. My work hours were cut from full time (40/wk) to part time (less than 30/wk). To try and make up for the lost income I tried to cancel my health benefits. I was told by my coporate office that I could not cancel my benefits because the governor of LA said no one could cancel their benefits because of hurricanes Katrina and Rita. Can anyone help me! Much appreciation in advance.
Answer
Is your portion of the premium taken out of your paycheck pre-tax or post-tax? It makes a difference.
Answer
What does your plan doc say with regard to eligibility. While I do not agree with your stance in dropping coverage, if your work hours make you ineligible for coverage section 125 rules may not apply here.
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The OP says that SHE tried to cancel benefits, not the the company was doing so. That would indicate that she did not drop below the eligibility limit, whatever it may be on that policy, and Section 125 would continue to apply.
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Is the reason that you need to drop it is because now that you're below 40 hours they make her pay not only her portion BUT the companies portion also. This is not uncommon if you still want insurance but I never heard of it if you no longer wish coverage.
Answer
Is the reason that you need to drop it is because now that you're below 40 hours they make her pay not only her portion BUT the companies portion also. This is not uncommon if you still want insurance but I never heard of it if you no longer wish coverage.
at the time of hire you had to sign up for insurance or prove you had other insurance. Don't know if that's legal but that is their policy.
Answer
Yes, it is legal to require proof of other coverage.
The OP has never come back to answer the question, but if the employee's share of the premium is taken out of his paycheck pre-tax, Federal law severely restricts when an employee can and cannot make any change to his initial elections, and if the employee still qualifies for benefits at his level of part time employment under his employer's insurance policy, this would NOT be a permissable reason under that law.