Change in Residence

This category is exhaustive. Election changes are only permissible where a change in residence affects the employee's eligibility for coverage.

The resulting change must result in either a gain or loss of eligibility of coverage for the employee, spouse, or dependent to request a change. For example, if a dependent goes to college and moves out of the HMO service area, the employee can request that the dependent's coverage be changed or dropped.

This, however, appears to be the only instance under the exhaustive status changes of the regulations where a participant may drop coverage, even if other similar coverage is available. However, a relocated participant cannot make a corresponding change to Health FSA coverage.