|Employers that want to control rising health insurance costs often consider making design changes to their employee benefit plans. Typically, these plan design changes are effective at the beginning of the plan year, and communicated to employees during an open enrollment period that precedes the start of the plan year. However, depending on a number of factors, employers may also be able to make midyear changes to their plans.
Can Employers Make Changes Midyear?
Yes; however, there may be restrictions to those changes. Not all carriers allow employers to make changes midyear. Even if your carrier permits midyear changes, consider the following issues?
What Type of Midyear Changes Should Be Considered?
The following plan design changes can be considered when an employer is looking to control rising costs:
Can Employers Make Changes to Employee Contributions Midyear?
Yes; however, there may be restrictions to those changes. Employers should consider the following steps before increasing employee contributions:
Can Employers Add a Waiting Period?
If your health plan does not include a waiting period before employees can participate in the plan, you may wish to consider adding this plan design feature. Keep in mind that, as a general rule, the Affordable Care Act prohibits waiting periods that exceed 90 days.
Can Employers Cancel a Health Insurance Plan Midyear?
Yes; however, there may be restrictions to those changes. If you are thinking about pursuing this avenue, consider the following:
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