Guest RxGuy Posted October 24, 2007 Posted October 24, 2007 I have a client that allows thier members to drop coverage that is under a Section 125 plan for any reason. Example, they have an employee that is covered under AFLAC per tax, and if an employee decides that they dont want it anymore, they are allowing the member to drop with a 30 day notice. Is this allowable under section 125?
leevena Posted October 24, 2007 Posted October 24, 2007 An employee may drop their insurance coverage (AFLAC) any time they would like. The premium they were having pre-taxed would still need to be collected.
Guest RxGuy Posted October 24, 2007 Posted October 24, 2007 If they drop coverage, they are still responsible to pay the premium?
leevena Posted October 24, 2007 Posted October 24, 2007 If they drop coverage, they are still responsible to pay the premium? They can cancel the coverage, but they still need to have the premium dollars deduction from their pay. Since the plan has been canceled, the premium collected remains with the plan. You can contact the 125 administrator for help with this.
Guest RxGuy Posted October 24, 2007 Posted October 24, 2007 If they drop coverage, they are still responsible to pay the premium? They can cancel the coverage, but they still need to have the premium dollars deduction from their pay. Since the plan has been canceled, the premium collected remains with the plan. You can contact the 125 administrator for help with this. Alais, I am at a health fair and the administrator did not not show up today. Thanks for your help
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