Open Enrollment Required for Medical Plan?

[Guest RWC]

Companies have generally have open enrollment for medical insurance elections once per year because that is when employees are permitted to change their elections under the cafeteria plan rules. But is open enrollment required? 401(k) elections are kept from year to year.

Any cites for your assertions?

[Linda]

HIPAA special enrollment is mandatory but annual open enrollment is not mandatory. No specific cite, just no mandate. That is, in the absence of a mandate for annual open enrollment, you don’t have to do it. Of course, there are reasons you would want annual open enrollment.

[Guest Chata]

If a company is tax exempt, under code section 125, is open enrollment required? If so in the event that participants make errors in benefits selections, will the company lose their tax exempt if they allow corrections?