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How should a plan correct its eligibility when ineligible dependents are identified?

April 26, 2017dependents eligibility ineligible Plan

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How should a plan correct its eligibility when ineligible dependents are identified?

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A723. Once identified, a plan should only remove ineligible dependents prospectively, and with proper advance notice to affected employees. Retrospective termination might be viewed as “rescission”, an insurance practice which has been severely curtailed by PPACA.