Employee wants to drop spouse and daughter from health insurance plan

[jsb]

Employer provides paid military leave, including benefits. Employee wants to drop spouse and daughter from health insurance plan because they now have TriCare. (This will result in more supplemental pay for employee.)

Would you permit this under your cafeteria plan or do you consider TriCare "governmental coverage" which would preclude this change?

While we would like to accommodate, we're having a hard time with the consistency of this request as the military leave has had no effect on benefits cost or eligibility. If TriCare is just any other "group coverage" (the military being an "employer"), the consistency conundrum is resolved.

Any thoughts (and cites!) appreciated.

[papogi]

A loss of such coverage would be grounds to change medical elections under 125-4(f)(5), but gaining such coverage would not. Without a loss of eligibility for the current coverage, as you said, I don't there are any avenues to drop the coverage. That's my take.