Guest taylorjeff Posted October 18, 2002 Posted October 18, 2002 I think the answer to this is no, but thought I would ask anyway. Group's 125 plan year is June 1 to May 31. Insurance renewal is Nov. 1. There is a significant change in rates effective Nov. 1. Could an employee who is presently not participating in the 125 plan, but is covered on the medical plan, enroll in the 125 plan effective Nov. 1? The only reason he was not enrolled in the first place was concern about reducing his future soc. sec. benefits.
Sandra Pearce Posted October 18, 2002 Posted October 18, 2002 Health FSA coverage can never be changed on account of cost or coverage changes.
papogi Posted October 18, 2002 Posted October 18, 2002 The post is not specifically about FSA's, but that statement is true. If the cost decreases significantly, the employee may begin participating in the 125 plan. If the cost increases significantly, the employee may only drop coverage or change coverage to a similar plan. This means that significant cost increases do not allow employees to begin participation in the 125 plan. In that case, they would have to wait until June 1.
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