Important information if you opt out of medical coverage
Before you decide to opt out of your employer’s medical plan, carefully read the provisions included in the new Certification of Other Comparable Coverage form. Your opt-out status is conditioned on the receipt of a signed form every year and proof of other coverage. This is an IRS requirement.
During annual enrollment, you must provide the new, signed form with proof of 2024 coverage. Proof can be an ID card, letter from insurance company, copy of enrollment information, etc., and must include your name and the plan year (2024). Even if you provided this information previously, you must do it again making sure you provide the new certification form and proof of other coverage with your name and year of coverage.
When you opt out, you are certifying you have other comparable medical Minimum Essential Coverage (MEC) as defined by the Affordable Care Act (ACA) that shows you (and anyone else you expect to claim as a tax deduction in 2024) as a covered member. Insurance coverage obtained through the individual market, including through the Health Insurance Marketplace, is not valid as other comparable coverage.
Deadlines matter! You will be enrolled in your employer’s default medical plan (employee coverage only) if you do not provide the signed form and valid proof of other coverage by the deadline. The best time to turn in your opt-out documents is during annual enrollment.
The form answers most of your questions, but if you need assistance, contact your Human Resources Department.