Employer encouraging dependents who have coverage available elsewhere to take other coverage

[Guest jchalfant]

I have a client who wishes to encourage those dependents who are eligible for coverage through their employer to take that coverage. In order to succeed in getting dependents to take coverage through their employer, there will likely need to be some financial incentive offered. Does anyone have any experience in doing this? What has worked? Are there any problems or pitfalls to avoid when doing this?

[Kirk Maldonado]

Isn't that a cafeteria plan if you give people the choice of cash or dependent coverage?

[Guest jchalfant]

Yes, I suppose it is. Does anyone have any experience incorporating this feature into their cafeteria plan? If so, are there any rules of thumb to go by and are there any pitfalls to avoid? Thanks.

[QDROphile]

Here's one on the subtle end: Madison v. Resources for Human Development, 39 F Supp 2d 542 (ED Pa. 1999)