Health Plan dependent student eligibility

[Guest jmjoyce]

Our dependent eligibility rules allow for full-time students over the age of 18 but under 23 to be enrolled in our health plans. We have an employee who a student is enrolled in an distance learning program for a vocational certficate as a Veterinary Assistant.

Would you consider this student as a "full-time student" or do they have to be in a "bricks and mortar" school to qualify?

[jeanine]

We use IRS support guidelines as a guide. According to the IRS, to qualify as a student, your child must be, during some part of each of 5 calendar months during the year (not necessarily consecutive):

1) a full-time student at a school that has a regular teaching staff and course of study, and a regularly enrolled body of students in attendence],.......

The term "school" includes elementary schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. It does not include on-the-job training courses, correspondence schools, or night schools.

Since this is the criteria we use, I would vote "no"

[GBurns]

Can you give any cites to these IRS support guidelines.

I know of many large employers who have "on-site" programs which are referenced in their employee handbook and employment contracts as being part of the "on the job training" and which programs are also degree granting courses run by recognized colleges/universities as off campus locations yet qualify under the various tax credits and allowances etc for deductibility etc.

If they qualify for the employee and employer I wonder why not for a dependant.

[jeanine]

I am basing this on IRS definition as "dependent" for basis for declaring as a dependent on Federal income tax filing. Can't really tell you why our employers choose to follow this particular way of determining eligibility, but I got this from IRS publication 504 (for use in preparing 2000 returns, maybe it's changed a little since), page 7. I know this publication is titled "Divorced or Separated Individuals" but I believe the definition of "dependent" and "student" is the same. However, I am open to the argument that perhaps we are not following the right guidelines. All I know is that we are told by our Self-funded plans to follow IRS definitions for determing dependent student status.