Is this a Qaulifying Event for FSA?

onvoy

I have an employee who is currently covered under our Medical Insurance, as well as her spouse. Her husband is not changing jobs, however since he is a Veteran, he is planning on adding VA Insurance for prescriptions. Our employee has elected to participate in our FSA. My question: She would like to change her election under the FSA due to the VA Insurance covering more for prescriptions. Is this a qualifying event that will allow the change?

I have looked at our SPD and it does not specifically address just picking up different insurance without changing or losing jobs. My gut tells me it is a qualifying event. What do you all think?

Thanks!

Pearce

Changes in cost of coverage and/or changes in coverage are not reasons that would allow a change in FSA election mid-year. See the Permitted Changes in the Final Regulations.