EE Dropping Coverage

[Guest scm2005]

We have an employee who is asking to drop her coverage due to finding cheaper individual coverage. We have told her this is not a qualifying status change since no real 'event' has occured -- and I believe finding individual coverage does not apply. She has now told us that her husband's employer is providing new insurance. Normally I think this second fact would qualify, however, he is self-employed and it is their company; he is perhaps the only full-time employee (or perhaps there is one more). Thoughts on whether this would qualify her to drop coverage?

[Guest matthew222]

I believe his election would need to be through a Section 125 plan. So if it's an individual plan, no. But even if it's a "group" plan, the election would need to be made through a Section 125 plan. A good question for your Section 125 administrator.