Husband Drops Kids From Coverage

[Chaz]

Employee and husband divorce. Husband drops children (residing with employee) from coverage under his plan during open enrollment (end of '07). Employee doesn't find out children had no coverage until now (i.e., May '08). Assuming cafeteria plan permits all election changes that are in accordance with the Code, can employee cover her dependent children mid-year under her plan under the "Change in Coverage under Other Plan" exception to the irrevocability rule? If so, can it be done retroactively? (I doubt it.)

Second, assuming the answer to the first question is "no" and the employee obtains a QMCSO directing the plan to add the dependents mid-year, can the QMCSO properly require the dependents to be added retroactively?

Any help is appreciated.

[JanetM]

The first inquiry should be to the husbands employer. Why didn't the kids get COBRA notice? Did husband not tell the truth as to where the kids lived? Depending on language in divorce there should have been language regarding child support, medical, and all that stuff. If husband was required to carry the coverage, employee would have recourse in court since he didn't follow the order.

Since the situation doesn't fit the caf plan change rules the employee would not be able to add kids since too much time has passed.

As tot the QMCSO - in my experience the order has always applied to non custodial parent. That isn't the case here. Full disclosure - I have only handled about a dozen QMCSOs so my experience is limited.

[J Simmons]

JanetM,

If the kids are yet eligible under husband's plan, but husband chose not to renew their enrollment for the next year (albeit in violation of the divorce order not presented as a QMCSO), what would be the COBRA qualifying event?

Losing coverage because no longer eligible as a dependent is one thing, but the parent simply non re-enrolling an otherwise eligible child--is that a COBRA qualifying event?

[Guest SHaddon]

Dropping a dependent at open enrollment is not, in and of itself, a qualifying event for COBRA. However, your employee should have received a Notice of Creditable Coverage from the carrier that would indicate that coverage had been terminated.

[JanetM]

John,

I was target locked on the divorce angle. glossed over the OE issue.

[J Simmons]

JanetM,

"target locked"? That's a synonym for 'focused' I haven't heard before. But I like it--as long as I'm not the target your firing at.

[Guest Kabert]

I'd make sure to look at the COBRA regs regarding termination of coverage "in anticipation of divorce."

[JanetM]

John,

Focused is good analogy - fixated is a bit better. Target lock is military term - when an ordiance guidance system is locked on target and responds to nothing else in the universe.

[Kimberly S]

Who knew that the angelic looking kitten was masking a mercenary?

[J Simmons]

It's a feline v canine thing! My avatar is what provoked it.

[JanetM]

Mercenary, not quite. Only qualifed as expert marksman on M16 and .22 pistol. John, I like your avatar.