Health Plan Deduction Error

[Guest YBrunson]

Employee terminates but employer fails to terminate health coverage with the insurance carrier. The employee is rehired, does not reenroll or waive health coverage and no deductions are taken. However, the old coverage is still in force. Employee says she wanted coverage all along and had assumed deductions were being taken (they were not). Do you make the employee make up the deductions (5 months worth)? Are there any pre-tax rule problems with catching up retro deductions or allowing a mid-year "change" to elect coverage even if it's retro'd to the start of the plan year.