Employees generally cannot change individual health insurance plans whenever they choose during the year.
Outside the annual Open Enrollment Period, a plan change usually requires a qualifying special enrollment period or another permitted enrollment opportunity.
A change in an employee's:
ICHRA allowance
Payroll information
Work location
Employment status
does not automatically create a right to select a different policy.
If a permitted plan change is available, confirm the new policy's effective date before canceling the existing policy. Canceling existing coverage too early can create a coverage gap.
The same consideration applies when an employee changes plans after submitting an application: confirm the available correction or enrollment process before submitting another application.