Dependent Ordered Off Plan

WMcEntee

We have a client who came to us with this issue. The employee signed a salary reduction agreement in October of 2000 stating that he was refusing all medical coverage. In October of 2001, they received a court order stating that the employee had to provide medical coverage for his child. He enrolled himself, his spouse, and the child. In January of 2002, they received another court order demanding that the child be removed from the plan. My client did remove the child, but left the employee and the spouse on the plan. The employee is angry because he does not want the coverage. The deductions are being taken pre-tax, so the employer is telling him that he is stuck in the plan until open enrollment. Doesn't the court order qualify him for a life event? If that is so, he should be able to drop all coverage. Any ideas?

Dianna

I work very closely with our insurance plan here, and my understanding is that court orders do count as life status changes, but ONLY for the named individual in the court order. I believe he and his spouse are stuck with the premiums until open enrollment. However, all insurance plans have there own sets of rules, and you might want to discuss it with them.

Hope that helps.