Are dependents allowed to enroll in an employee’s plan during the federal OEP?

Q: To my knowledge, the federal OEP only applies to the individual market, since employer groups each have their own OEP based on when their plan renews. Are dependents allowed to enroll in an employee’s plan during the federal OEP? The employer’s open enrollment is coming up, but they don’t have any information about the 2017 individual market, so they don’t know if they should enroll in their parent/spouse’s plan or stay on an individual plan.

A: The Marketplace OEP does not afford a dependent an opportunity to enroll in the employer’s plan mid-year. If they enroll in their parent’s plan now and then decide they’d prefer a Marketplace plan, there is a rule that allows an employer to amend its Section 125 plan to allow an employee to drop coverage for himself and/or any dependent who enrolls in Marketplace coverage during an OEP or special enrollment period. Note that it must be in the written Section 125 plan to apply.

Top