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Health Insurance opt out

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The use of a forum such as this does not lend itself to answering this question easily.  There is too little info provided.  Might be better to discuss with a competent advisor in person.  Short answer, an opt-out is allowable, but there are many variables that need to be taken into account when designing.

I do not believe I understand the scenario you outlined.  Are you saying the opt-out is only available to employees who were participating in the plan during the previous plan year?  Or to say another way, to be eligible for the opt-out the employee must take the health insurance for one year?  If this is true, I doubt if it meets the requirements, but again, too many missing pieces to give you a definitive answer.  Or are you asking if an opt-out is allowable?

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