If enrolled in a group sponsored insurance plan you may hear your HR or benefits department say that you need to have a qualifying event to make changes to your plan, including adding or removing a spouse or child(ren) from your plan.
Qualifying events can include:
- Marriage
- Divorce
- Birth
- Death
- Change in insurance status (loss of coverage under a spouse, for example)
- Change in job status (moving part time to full time, for example)
When a qualifying event (QE) occurs, your have 30 days to notify your employer and make necessary changes to your plan.
The need to have a QE to make changes to your plan stems from how premiums are withheld from your paycheck. Many employers utilize a Premium Only Plan (POP)/Section 125 plan to withhold premiums. A Section 125 plan helps to lower the employee’s taxable income but comes with some restrictions, the need for QE’s in order to make plan changes is one of those restrictions.