Dropping from the Pool ???

[Mike Siegal]

Hey Buds....

QUESTION: In what cases may a qualified employee drop out of a group plan? (obviously if he gets fired or leaves the company but)...

• WHAT OTHER CASES may an employee leave a group plan?
• What are the consequences to the Group Plan in this event...?
• Does the employee have to stay with the plan all year... suppose they aren't happy with the Insurance Co.

Anyone Know...?

thanks for your input..

 

[somarco]

Hey Buds....

QUESTION: In what cases may a qualified employee drop out of a group plan? (obviously if he gets fired or leaves the company but)...

• WHAT OTHER CASES may an employee leave a group plan?
• What are the consequences to the Group Plan in this event...?
• Does the employee have to stay with the plan all year... suppose they aren't happy with the Insurance Co.

Anyone Know...?

thanks for your input..

Other than an SEP, usually an employee can voluntarily quit the plan during open enrollment.

 

[Mike Siegal]

Other than an SEP, usually an employee can voluntarily quit the plan during open enrollment.

I thought a certain percentage must be on the plan to make it ACCEPTABLE to Group Rules ?

 

[somarco]

I thought a certain percentage must be on the plan to make it ACCEPTABLE to Group Rules ?

SMALL group plans have strict participation and employer contribution requirements. Large groups (300+ lives) not so much.

If someone is in a 2 person group and they want to drop off that would probably kill the plan. One dropping off a 10 person group, usually no impact.

Also, plan administrators often want documentation you have somewhere to go if exercising an SEP.