Health Service Board approves Section 125 addendum to allow one 2020 midyear election change

Mitchell Griggs, chief operating officer of the Health Service System, told the Health Service Board that IRS notices 2020‑29 and 2020‑33 provide flexibility for plan year 2020 and that staff recommends an addendum to the 2020 Section 125 Cafeteria Plan and HSS member rules.

"It allows making midyear election changes once," Griggs said, describing that eligible employees and retirees may newly enroll in medical, dental or vision coverage, change plans or coverage level, add or delete dependents, or waive coverage for the rest of the plan year if they attest to having other coverage. He also described similar one‑time flexibility for healthcare and dependent-care flexible spending accounts and noted the IRS guidance increases the usual FSA carryover limit for 2021 planning.

Commissioners asked whether the changes would be revisited at the normal September review. Griggs said the IRS guidance applies only to 2020 and that the items would reappear in the September materials. During the public‑comment period callers backed the flexibility and urged extension of FSA grace‑period relief through the end of 2020.

Commissioner Randy Scott moved to accept the staff recommendation; Commissioner Chris Canning seconded. The board voted unanimously to approve the addendum. The board noted the IRS guidance is optional for employers and that any employer adoption must comply with nondiscrimination rules.

The board’s action directs staff to update the plan documents and communicate the changes to members and employer groups so eligible employees and retirees can exercise the one‑time 2020 election opportunity.