Qualifying Event under Section 125

[Guest mander]

I have an employee who currently has medical coverage for himself and his spouse. The premiums are paid through a Section 125 plan. He is also covered through the Veterans administration and now wants to drop his medical coverage because he considers this to be a qualifying event. I do think it is a qualifying event for 2 reasons:

1. He has been eligible for this coverage for a number of years and is now enrolling.

2. A qualifying event has to be beyond their control such as a spouse loosing employment, divorce, etc. This event is not beyond his control.

Should this be considered a qualifying event under Section 125?

[J Simmons]

No, it should not be considered a qualifying event that permits a mid year change in elected benefits. He had the same options during the open enrollment period for the year as he has now. All that is different is that he has changed his mind. He needs to wait until the next year begins to drop the coverage under your plan.

[oriecat]

changeofstatus.com says you can drop coverage when "Employee Becomes Entitled to Medicare, Medicaid, or Other Federal/State Agency Benefits" but I'm not sure where they are getting the other part, as the actual reg seems to only mentioned Medicare and Medicaid.