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Asked: Apr 23, 2010

Switching family from group coverage after company changed reimbursement.

My company just notified me that they will no longer be paying for my family premium under the company health insurance plan, effective April 1, 2010. My open enrollemnt was 1-1-10 and i put family on this plan with understanding that the company would pay the cost (appro $10,800 year. Now that they are not, can i keep my individual plan with the company and cancel the family portion so that i can buy a cheaper plan on the individual market?

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Yes, you can elect to remove your dependents from your group health plan at any time, for any reason. Removing your dependents will not affect your individual eligibility to remain covered under the group plan. Many people remove dependents from Small Business plans because they find it less epensive to find separate Individuals. There are other advantages in putting your dependents on individual policies, if your employer is not contributing to their premium. Individual plans are permanent issue and not subject to employment of the whims of an employer. If your insurance companies ask you to provide proof of new coverage before they remove your dependents from the group plan, you are not required to provide this

Answered: Apr 29, 2010

 

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