Family Status Change: Consistency

[Guest Steven7]

Employee Jane requests a change in her medical election under our Sect 125 plan. She states that her husband has enrolled himself and their children under his medical plan (he recently changed jobs). Jane wants to drop the medical plan for spouse and children but keep her coverage here because it is cheaper.

It would seem to me that dropping coverage altogether would be consistent with her husband's new eligibility as he could add her to his plan. He chose not to.

I'm really on the fence on this one. If I was jane's friend (as opposed to being the decision maker here) I would advocate on her behalf. Any thoughts would be greatly appreciated.

[This message has been edited by Steven7 (edited 06-01-99).]

[Guest TamraCS]

Looking at the regs and consistency issues, I think you could argue that she could cancel her spouse & children based on their 'gain' of eligibility through her husband's employment. Even though Jane also gained eligibility, she does not have to cancel her own coverage. Just an opinion and what we would allow based on our interpretation...

[Guest Steven7]

Wouldn't you know it -- the whole thing is moot now. We requested a letter from her husband's employer asking for the start date of his medical coverage. They're asking for the change more than a month after the deadline.

Thanks for the reply, TamraCS.