- Drop out of their health insurance if they have another option,
- Sign up for insurance if they have not done so,
- Add family members to their plan, or
- Switch to a different health insurance plan.
The IRS has loosened restrictions on employees who want to make changes to their group health plans and flexible spending accounts (FSAs) in the middle of the policy year. IRS rules are typically stringent and rigid, barring changes from being made to health plans except during open enrollment. Under the new rules, the employer would still have to approve letting staff make changes to their plans if they have more than one option to choose from. The IRS issued the new guidance after employer groups lobbied the agency and Congress to loosen the rules because the COVID-19 pandemic has led to profound changes in employees’ health care needs as well as access to childcare. The new rules are temporary and apply only to 2020. All of the following mid-year changes must be approved by the employer; Health plan changes: Employers can let employees make mid-year changes that would be in effect for the remainder of the year. The new guidance allows employees to: