Navigating employee benefits can be challenging, especially when life changes unexpectedly. However, under a cafeteria (Section 125) plan, employees may be able to adjust benefits outside the annual enrollment period if they experience specific midyear qualifying events. Employers are not required to allow all changes, but they must accommodate those under HIPAA special enrollment rights. Understanding the circumstances that allow midyear alterations is essential for maintaining adequate coverage. Click here for article.
Midyear Qualifying Events: Certain life changes, like marriage or birth, allow employees to modify benefit elections outside of open enrollment.
Common Events: Changes in marital status, number of dependents, employment, dependent status, or residence may qualify.
Possible Adjustments: Employees can add/remove dependents, enroll/drop coverage, change plans, or adjust coverage levels during qualifying events.
Employer Guidelines: Employers may have stricter rules than IRS guidelines, and changes typically must be made within 30 days of the qualifying event.
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