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SECTION 125
QUALIFYING EVENTS
DEPENDENT ELIGLIBITY AND AUDITS
SECTION 125
Health Insurance premiums deducted on pre-tax basis fall under Section 125
Employees must opt out of Section 125 if they do not want to participate
Opting out allows the employee to terminate their medical and dental enrollments at anytime
QUALIFYING EVENTS
Marriage
Divorce
Birth/Adoption
Change in employment status for employee or spouse to include termination, employment or employment category change
Spouse Open Enrollment Period different timeframe
Approval for enrollment into State sponsored benefits
QUALIFYING EVENT FORM
Qualifying Event Form (MCCS FORM 510) is required when an employee is updating their health plans during a qualifying event.
Form 510 should be kept in the OPF along with the 499 and provider forms
SAD is exempt from the HIPPA Portability Rules and does not fall under the qualifying event rules.
DEPENDENT ELIGIBLITY
Dependent Eligible Family Members
Spouse
Children up to age 26 (medical & dental)
Children up to age 19 or 23 if a full-time student
• Children may be biological, adopted, step children or other children who are not biological but depend on the employee financially or are legally considered a dependent
Parents do not qualify as eligible dependents, even if the employee is financially or legally responsible them
DEPENDENT DOCUMENTATION
Dependent documentation and verification is required for all dependent enrollments.
The employee is required to provide evidence of that dependent’s relationship to the employee.
The following list are acceptable documentation to add Children:
Birth Certificate
Adoption Papers
Official Court Guardianship Designation
DEPENDENT DOCUMENTATION CONT’D
The following list is acceptable documentation to add a spouse:
Most recent 1040 reflecting spouse as a dependent
If new marriage and no 1040 is available, however marriage certificate is required
2010 AETNA DEP AUDIT RESULTS
Total Number of employees Affected – 115
Total Number of Dependents removed – 197
Estimated Financial Savings for MCCS for the Aetna Plan Audit only is $420,000 per dependent
2011 LIFE AUDIT RESULTS
Total Number of Employees Affected - 19
Total number Employee Removals – 6
Total number of Dependent Removals – 15
Numerous enrollments allowed erroneously
Employees forced to terminate
Employees forced to make up missed contributions