Which event is considered a permitted change in status for revoking a Cafeteria plan election?

When it comes to Cafeteria plan elections, a permitted change in status allows employees to make adjustments to their benefit elections in response to significant life events. The loss of other health coverage qualifies as a permitted change in status because it directly affects an employee's need for health insurance. This type of situation provides justification for modifying their elections to ensure they are covered without a gap in health insurance.

The loss of other health coverage, whether due to losing a spouse's employer-provided insurance, eligibility changes, or other circumstances, enables an employee to enroll in or adjust their Cafeteria plan benefits to secure necessary health coverage. Federal regulations, such as those set by the IRS, outline specific qualifying events that must be met to ensure that changes in plans or benefits are in compliance with tax advantages afforded to Cafeteria plans and their flexibility.

Other options like changes in benefits offered by the employer or changes in health care providers do not meet the criteria for a permitted change in status as they do not represent a loss of coverage or a qualifying event that significantly impacts the employee’s health insurance status. Similarly, a change in the employee's job title typically does not affect their coverage options under a Cafeteria plan unless it coincides with a different qualifying life event