Please help, Anyone know where I can find a listing of status changes (what the law considers)? I remember seeing somewhere, a while back that an "increase in premium" to the employee would constitute for a status change..? Sounds sort of odd - but I know I read that somewhere. Where could I find a listing of what the law regulates as a qualifying event for a status change in Health or Dental Insurance. Any help would be greatly appreciated.

The actual Federal Regulation is Prop. Treas. Reg. 1.125-2 in the Q&A it is Q-6(B)(1) Significant cost or coverage changes -(1) Cost changes.

This regulation states that a participant may revoke existing elections and make a new election under a cafeteria plan if the cost of a health plan provided by an independent, third party provider under a cafeteria plan increases or decreases during a plan year and under the terms of the cafeteria plan, employee are required to make a corresponding change in their premium payments. It also states that the premium amount significantly increases, a cafeteria plan may permit participants either to make a corresponding change in their premium payments or to revoke their elections.

The still "gray" area is what actually denotes a "significant" increase in cost. At this time there has been no specific definition for this in the regulations. I think that is something that is at the discretion of the individual employer.

Hope that helps.

One caveat to KClark's answer.

The regulation KClark cited states that the plan may permit participants to revoke their elections "and, in lieu thereof, to receive on a prospective basis, coverage under another health plan with similar coverage." It then says no other revocations are permitted.

Therefore, a plan may allow a participant to elect different coverage but cannot allow a "no coverage" election after a plan year starts on the basis of a significant premium increase.