[benefits] blog logo

IRS Announces Additional Permitted Election Changes for Health Coverage

In Notice 2014-55, the IRS added two situations in which a cafeteria plan participant may elect to discontinue coverage under the employer?ÇÖs group health plan (the ?Ç£Employer Plan?Ç¥) to obtain coverage on an exchange established under Section 1311 of the Affordable Care Act (the ?Ç£Exchange?Ç¥). In the first situation, the participant?ÇÖs hours of service are reduced such that the participant is expected to work less than 30 hours per week, but will remain eligible for participation in the Employer Plan. In that case, the participant may terminate coverage in the Employer Plan so long as he obtains coverage on the Exchange starting no later than the first day of the second month following the month in which the Employer Plan coverage is terminated. In the second situation, a participant may terminate coverage in the Employer Plan to obtain coverage through the Exchange with no overlap or gaps in coverage.?á A copy of IRS Notice 2014-55 can be found here.

The lawyers of our Employee Benefits and Executive Compensation Practice Group are readily able to assist companies on a nationwide basis with implementing sophisticated benefit plans and providing answers to their most challenging compensation issues. Additionally, our lawyers are well aware of the daily employee benefits challenges facing companies of all sizes and are capable of helping in-house lawyers and human resources personnel with the day-to-day advice and guidance necessary to properly administer employee benefits plans.

Leave a Reply

October 2014
S M T W T F S
 1234
567891011
12131415161718
19202122232425
262728293031  

Archives