Qualifying Events

A qualifying event is described as situations that may bring about a change pertaining to the benefits that the employer is extending to and through their employees. The accurate impact of that scenario is typically positive in the sense that the employees are now eligible to receive more benefits. On the other hand, a qualifying event can also lead o reduction and loss of specific benefits according to the changes of the employee’s personal circumstances.

End of employment is the very common and basic example of a qualifying event. In this case, the employee will no longer receive any benefits form the numerous benefits provided by the employer. This sometimes includes the participation of a group plan insurance. Depending on the situation that caused the termination, the employees may still be catered with the extended coverage in a specific period of time by the employer or the employee can be qualified to participate with a government sponsored insurance plan is a designated period of time. Being a part of this kind of insurance coverage may depend usually as it comes to be optional. The employees are given the responsibility to meet all the requirements needed to be a part of this coverage and pay for the necessary payments in a span of 30 to 60 days right after the termination of the employment.

Sometimes, the qualifying event might include a reduction of the employees’ working hours automatically changing from full time employee to part time status. In this case, all the loss of any events related to the full-time employment will not be catered by the employer but only those events that are related to the part-time status. For instance, the employee might loss that opportunity to avail vacation leave but he / she may still be a part of the group insurance plan.

A qualifying event may include changes of the employee’s personal circumstance. If the employee is under the state of divorce, a certain change will occur in the type of benefits being provided in the group insurance plan. As a counterpart of the divorce, the former spouse usually loses any coverage of the insurance plan although there are numerous plans that will allow employees to continue and retain the coverage for the family as a way of insuring the minor kids. However there are also certain instances that the employee may switch his/ her plan to individual coverage from the family coverage which will directly affect the premium to be paid as well as the inclusion in the group insurance plan.

If a qualifying event is taking place, the employees are usually given time to take the proper steps for the changes that has occurred causing the event. Those individuals whoa re experiencing a qualifying event should always work with the HR personnel at the particular place of employment in order to determine the result of that event to the benefits and status of the employee and to determine the need to do actions while claiming for the benefits under new circumstances.