Question of the Week

Posted by BAS - 11 May, 2017

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Q.- We offer medical coverage through a cafeteria plan. An employee elected single coverage but wants to add her child mid-year. She said her child lost coverage under a state health program. Can we allow the mid-year enrollment?

A.- The IRS has said that loss of coverage under a state health plan (such as CHIP) is a permitted mid-year election change event. If your plan recognizes the event, you may allow her to add the child to coverage prospectively.


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