Employee drops from full-time to part-time, but still eligible to participate

[Guest cosmo01]

We have a situation wherein an employee's hours have dropped such that he is considered part-time. Part-time employees are eligible to participate in the medical plans, however, the hours he is working are not sufficient to cover the premiums. I know that under 1.125-4, an employee may change his elections if he goes to part-time only if the change effects his eligibility under the plan. The change does not effect his eligibility, but his pay is not sufficient to cover the premiums. Any thoughts? Obviously if his pay isn't enough to cover it, the premiums will not be sent. Has anybody dealt with this situation before?

[jsb]

Did anything change about the employee's cost? Is the employer contribution identical to before the hours change? If not, you may have an out.