Incarceration alone might not affect dependent insurance coverage

Q         If an employee’s dependent is sentenced to incarceration for a specified length of time, does that constitute a valid qualifying life event to remove them from insurance coverage while they are incarcerated?

A   Interestingly, incarceration alone wouldn’t be considered a valid qualifying life event (QLE) to remove an employee’s dependent from coverage. While leaving incarceration is considered a QLE, entering incarceration will only be considered a QLE if it disqualifies the dependent from coverage under the terms of the healthcare plan itself.

Keep in mind that removal of coverage based on such a QLE may allow the dependent to request coverage under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Also of note, some states (not Idaho) prohibit cancelling insurance for incarcerated individuals.

Jason R. Mau is an attorney in the Boise office of Parsons Behle & Latimer. He can be reached at 208-562-4898 or jmau@parsonsbehle.com. Rebecca L. Jensen, a J.D. Candidate 2023, University of Idaho College of Law, is a summer associate with Parsons Behle & Latimer.