Proof of Coverage

[Guest CSB390]

What legal requirements would arise if an employer requires an employee to provide proof of medical coverage from another group source when the employee is declining the company's health plan. My company is considering defaulting all employees who decline coverage in an employee only benefit plan. The employee only contribution would be deducted from the employee's paycheck if no documentation of another group plan is presented to HR by the end of the open enrollment period.

[QDROphile]

Qualifed retirement plans may need terms to deal with "deemed" cafeteria plans and effect on compensation.

[GBurns]

QDRO

Can you explain what you mean ?

The employee is not getting any cash-out or any other benefit.

[QDROphile]

Rev. Rul. 2002-27. The post did not give a lot of details, so the warning must be evaluated depending on circumstances.

[Don Levit]

QDROphile:

Thanks for providing that very interesting revenue ruling.

It provides a definition I have been looking for: deemed compensation.

CSB390:

If the employees can verify individual coverage, do you have a "default" to provide another benefit, or can the employee select another benefit?

Doing so can make the option of allowing the employee to use the cafeteria plan to pay his individual premium a relatively moot point.

Don Levit

[GBurns]

There is no individual coverage and no individual premium.