Coronavirus Surprise: IRS Allows Midyear Insurance And FSA Changes

From KaiserHealthNews:

You may find yourself in a high-priced health plan you can no longer afford because of a temporary pay cut, unable to get the medical care you might have planned and budgeted for, or not sending the kids to day care. Normally you’d be stuck with the choices you made unless you had a major life event such as losing your job, getting married or having a child. But this year, things may be different.

Last month, the Internal Revenue Service announced it would let employees add, drop or alter some of their benefits for the remainder of 2020. But there’s a catch: Your employer has to allow the changes.

The new guidance applies to employers that buy health insurance to cover their workers as well as those that pay claims on their own, called self-insuring. It’s unclear how many employers will take advantage of the new flexibility to offer what amounts to a midyear open enrollment period. If you’re wondering what your company will do, ask.

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