Hi - I was wondering if it is allowable for a COBRA participant to change their elections mid-year. Our Health Plan rates are 2-tier...Single Coverage and Family Coverage (Family being more than one person). A COBRA participant currently has Family coverage (spouse and 1 child). They have applied for the State to insure the child, so he was wondering if he could change his election to just his wife and himself. First, is this allowed or does he have to wait til the annual Open Enrollment? Secondly, if allowed, would it still be family coverage or can they enroll separately under 2 single COBRA health plans to save money?

Thanks for any input!

The plan only has to allow the change during the annual/open enrollment period given to other, active employees to sign up or make changes to their health coverage.

But if the plan would allow the change desired outside of the annual/open enrollment period for active employees otherwise similarly situated, then it should be allowed to the COBRA continuee as well.

Thank you for the reply. We don't allow election changes mid-year for active employees because of Sec 125, so COBRA participants should then be treated similarly, correct?

Thank you for your help!

Your cafeteria plan could permit, under the regulations, certain changes incident to specified 'changes in family status', but your plan is not required to do so. Your cafeteria plan might be required by HIPAA, if applicable, to allow certain mid-year changes, such as coverage for a newborn.

But if a mid-year change is not allowed, either by your plan or the regulations, to active employees, then my understanding is that you would not have to allow mid-year changes to those on COBRA continuation.