Cafeteria Plans

[Guest TML]

We have a client who allows employees to pay preimums pre-tax through the cafeteria plan. The health insurance company has increased their premiums effective 9/1. It's a significant cost increase that would allow the participants to make a change in status and have the premiums increased. However, the cleint has a number of employees who had not participated in the plan at the beginning of the year and would like to automatically enroll them now. Can the employer implement an automatic enrollment mid year?

[papogi]

No. Consistency rules will say that a decrease in costs will allow new participants to enroll, but an increase will not.