Dropping Adult Child's Coverage

[oriecat]

An employee's covered child has turned 18, moved out, and isn't taking his meds, so she wants to drop his coverage (why pay for it, if he won't use it?) Prior to PPACA, I don't think this would be an issue since he would no longer be a dependent, but now with the expanded rules for dependents, I am thinking she cannot drop his coverage until open enrollment because despite it all, he remains eligible. Am I missing something?

[SLuskin]

An employee's covered child has turned 18, moved out, and isn't taking his meds, so she wants to drop his coverage (why pay for it, if he won't use it?) Prior to PPACA, I don't think this would be an issue since he would no longer be a dependent, but now with the expanded rules for dependents, I am thinking she cannot drop his coverage until open enrollment because despite it all, he remains eligible. Am I missing something?

I agree.

[oriecat]

Oh what about if he is employed and could get coverage from an employer?

[dashab]

If this coverage runs through cafeteria, the employer needs to analyze the situation based on whether the removal of the dependent is a permissible election changes under section 1.125-4. Not wanting to pay for coverage is not a permissible change under the cafeteria rules, so the employee would have to wait until the next open enrollment to make the change.