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AB 2208 - Employee or DP must experience "Family Status Change" in order to drop DP mid-year (even though pre-tax premium for DP's isn't typically allowed)?


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Guest benefitsnerd
Posted

Curious if anyone has heard whether employees with covered dp's can drop dp mid year for any reason or does employee & dp need to have a Family Status Change to do so.

Posted

Is this under a section 125 cafeteria plan or not?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

We cover DP's where state laws and carriers permit us to. Participants are allowed to enroll DP's only when the participant is initially eligible to enroll or during annual enrollment. We do not all enrollment of a DP due to a family status change. Because a DP is not considered a legal dependent (in most cases) under Federal law, we require that the coverage be paid for on an after-tax basis. Since the coverage is after-tax, it is not under the 125 plan and the DP may be dropped at any time.

Posted

benefitsnerd

What did you mean by "dp's"?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

I wondered what benefitsnerd meant because of the use of the phrase "Family Status Change" which, to me, implied a legal dependent hence family member and also that it was under section 125 "Change of Status" rules, rather than any other situation especially since there should be a problem with most carriers etc otherwise.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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