Change in status question

[Guest bmatt]

Under our cafeteria plan, our employee chose to receive cash in lieu of health insurance coverage. The employee's ex-spouse carried health insurance for the dependent children. The ex-spouse will be losing his insurance coverage through his employer, so our employee would like to pick up full family medical coverage for herself and the children under our health insurance. The dependent's loss of insurance would be a change in status. My question is, if the employee currently does not have the medical insurance would the dependent's loss of insurance qualify her to now pick up full family coverage which would include coverage for herself?

[J Simmons]

Does your plan offer 'dependents-only' coverage configuration without the employee also being covered? That would be unusual. If the only way that the dependents can be covered is in a family configuration that also includes the employee, then so be it--the employee gains coverage mid-year incidental to the dependents getting coverage.