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.
Strategic Benefit Partners 