Significant Cost Increase
Posted 10 February 2003 - 01:32 PM
Posted 10 February 2003 - 02:28 PM
Posted 18 February 2003 - 12:29 PM
A number of questions have arisen based on changes being proposed. The biggest of these concerns the ability to make mid-year changes in their 125 election.
1. If ee has signed up for benefits under 125, can they drop their medical coverage due to the significant increase of cost to them at the time they change to PILB status even if change is mid-year? ie - they used to pay $20/pay for ind. coverage but now, without employer contribution, they would be responsible for the full $68.
2. If so, then do we have to offer the same option for them to elect medical coverage if they choose to drop this status mid-year. Does this become a qualifying event because of the decrease in their cost of the insurance?
3. Can this full amount fall under 125 for pre-tax deductions?