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Automatic cost changes for a lost BFWP discount


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Guest steelejared
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Under a bona fide wellness program, an employer provides a group health plan premium discount to employees for either not smoking or, as a reasonable alternative, attending a smoking cessation program. If an employee reports that they are a non-smoker and then subsequently begins smoking, lets say that the plan provides that the discount can be removed prospectively. Alternatively, lets say that someone begins the plan year as a smoker, but subsequently participates in the smoking cessation program and the plan provides that the discount will apply prospectively for that person. Also assume that the cafeteria plan used to pay premiums provides for automatic cost changes to elections under the cafeteria plan. Would this kind of increase or decrease in the premiums be considered to fall within the automatic cost changes as contemplated by the regulations. It seems that it could apply and I have not seen any authority to the contrary. Does anyone have any thoughts on this?

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