Open Enrollment and non-Section 125 Benefits

[Guest wekiva]

We've been having a discussion in our Benefits Department about this topic and I would love to get some outside input.

We offer our employees six supplemental policies through Allstate. Three are offered through our S125 plan (Cancer, Supplemental Health Options, and Heart/Stroke) and three are not (STD, Accident and Universal Life). Employees can enroll in or drop any of the six at hire and during Open Enrollment.

Our discussion and questions surround the three plans that are offered outside of the S125 plan. Since they are offered outside of the S125 plan, is it permissible to allow employees to enroll in or drop coverage outside of OE -- at any time during the year? We don't have any written policy/procedures on this; it has just always been done that way.

How do other companies treat these benefits?

Thank you for sharing your opinions and expertise.

Wekiva

[MARYMM]

We've been having a discussion in our Benefits Department about this topic and I would love to get some outside input.

We offer our employees six supplemental policies through Allstate. Three are offered through our S125 plan (Cancer, Supplemental Health Options, and Heart/Stroke) and three are not (STD, Accident and Universal Life). Employees can enroll in or drop any of the six at hire and during Open Enrollment.

Our discussion and questions surround the three plans that are offered outside of the S125 plan. Since they are offered outside of the S125 plan, is it permissible to allow employees to enroll in or drop coverage outside of OE -- at any time during the year? We don't have any written policy/procedures on this; it has just always been done that way.

How do other companies treat these benefits?

Thank you for sharing your opinions and expertise.

Wekiva

It would depend on the contract you have with the carriers. I think most carriers would not allow it unless evidence of insurability is provided.

[oriecat]

I would think they could certainly drop the coverage at any time. By revoking their election, they will stop paying for it, and I think most policies have a provision that coverage ends when the premium isn't paid. But in terms of enrolling, that would depend upon the policy and how the carrier handles it. They might not allow enrollments at any time.