Mid-year Increase In Opt Out Benefit

[Christine Roberts]

Fully flexible Section 125 plan keys its opt-out benefit to the premium cost for group health coverage.

Group health coverage premiums are increasing 30% this month.

Employer wants to increase cash opt-out benefit accordingly.

Is this a basis for employees who have opted out of group health coverage, to make mid-year election changes to allocate the increase $$??

[papogi]

I would say not because the consistency rules (no change in eligibility, etc.) are not met in this case to allow mid-year changes. I can appreciate that there might be different interpretations on this, but that’s my take.