QUESTION

My family signed up for my employer-sponsored plan, but I'd like to switch them to a more affordable Marketplace plan. My employer's open enrollment period is ending soon. If I switch my family to a Marketplace plan, can I drop them from my employer plan?

Individuals with coverage | Individual and Marketplace Health Coverage | Coverage for Employees of a Large Employer | Coverage for Employees of a Small Employer |
ANSWER

That depends. Once your employer's annual open enrollment period has ended, your employer may, but is not required to, allow you to revoke your election of an employer-sponsored family plan before the start of the plan year as long as your family is enrolled in marketplace coverage effective January 1st (for calendar year plans) or the day immediately after the final day of your employer-sponsored insurance (for non-calendar year plans). Before signing your family up for a marketplace plan, you should confirm with your employer that they will allow you to revoke their enrollment in the employer's family plan. When you disenroll your family from your employer plan, ask your employer for proof of the disenrollment so you have documentation of that decision should the marketplace request it. (IRS Not. 2022-41)

Related Tags

Individuals with no coverage
Individuals with coverage
Coverage for small employers
Post enrollment issues