Yes, you can drop your coverage whenever you have a qualifying life event. You will lose any money in your Section 125 that you do not use before the end of the qualifying time period.Ê
No
qualifying event
No, an employer cannot harass their employees into dropping coverage. It is not the employers business to get involved in the personal insurance details of their employees.
Masters Qualifying Event was created in 1990.
Masters Qualifying Event ended in 2009.
Assuming the employer offers coverage to spouses, then the employer would not have the right to turn a spouse away. The spouse's loss of coverage is a "qualifying event" and the employer's insurer would allow the spouse to join.
You can apply for Cobra medical insurance from the Department of Labor when a qualifying event entitles you to a claim. Some examples of qualifying events include termination of your employment through no fault of your own or reduction in the number of hours available to work.
In a health plan with multiple options, the health coverage that is considered to be in effect on the day before the qualifying event is the option the employee previously selected. If the employer offers participants a choice among indemnity coverage, PPO coverage, or HMO coverage, and the qualified beneficiary elected HMO coverage for the plan year in progress at the time of the qualifying event, the qualified beneficiary generally may not change to the indemnity or PPO coverage at the time of the COBRA election. Even if the PPO and indemnity coverages are separate plans, the qualified beneficiary did not have coverage under them at the time of the qualifying event and cannot continue that coverage. At an annual enrollment period occurring during the continuation period, however, the qualified beneficiary will be entitled to switch options in the same manner as an active employee and could then elect the PPO or indemnity coverage in place of the HMO coverage. (Qualified beneficiaries' election and enrollment rights are different in some circumstances, so ask about that if you are considering the rights of dependents rather than the ex-employee alone.)
A qualifying life event change is defined as a change in your status due to marriage, birth or adoption of a child(ren), death of an immediate family member, divorce, loss or gain of insurance coverage by your spouse, or termination.
You generally need to turn to private medical insurers. Many of these plans will offer you coverage with high deductibles and low premiums so that you'll be covered in the event of a major medical event but you won't be able to get coverage for minor medical events without paying a lot out-of-pocket. These insurers should also cover you even if you have pre-existing medical conditions.
You can always drop due to a qualifying event. If you did not have a qualifying event, check your Section 125 Plan (AKA Cafeteria Plan). This document dictates the contributions that you make pre-tax through payroll deduction... so your ability to stop paying may be the key to your decision.
divorce