Some big insurance companies and eleven state insurance exchanges announced limited special enrollment to help more people get insurance coverage. Should you do the same? It could be tempting to say yes when one of your employees, who previously waived coverage, comes to you asking to enroll. Keep the following information in mind, and don’t do anything without discussing with your account manager.
- Cafeteria plan elections are irrevocable during the plan year unless there is a qualifying event. The National Health Emergency is not a qualifying event.
- An employee who opted out of the plan at the beginning of the plan year can’t enroll and expect to have pre-tax contributions.
- If you still want to let the employee enroll, can your payroll system handle after-tax premiums?
- Your stop-loss vendor might not like this. The vendor’s consent is vital.
- If you offer a window of enrollment, what if it isn’t long enough? You’re back to square one with new decisions to make.
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