Employer takes employees off coverage instead of "in leu of"

[Guest]

I suggested an in leu of 125 plan to a company and they are looking at simply denying coveraage to anyone covered under the insurance of a spouse? Does anyone know of any problems with this idea?

[Guest Bill Lewis]

companies that do this usually create alot of problems for themselvees, morale, etc.

legally, i believe it's allowed but also depends upon size of group, funding, ie. self funded or fully insured, etc.

if self-funded, eligibility rules from Plan document would allow it.

[GBurns]

Can you explain what you mean by an" in lieu of 125 plan" ?