- The participant is in a position in which he or she is expected to average 30 or more hours a week but the participant's employment status changes and he or she is then expected to average less than 30 hours a week. However, this situation will only permit the revocation if the employee (and related individuals) enroll in other plan that provides minimum essential employer coverage by the beginning of the second month after the revocation.
- The participant is eligible to enroll in a qualified health plan through a marketplace and does so no later than the day after the original coverage is revoked.
In both cases, the plan permitting the revocation can rely on a reasonable representation from the participant that confirms that the required elements of the situation exist.
Note that plans are not required to permit this additional flexibility, but they may do so as of the date of the Notice (September 18). Plans that use the guidance do not need to be amended until the end of the plan year in which the new rules are applied. In addition, for a plan year that begins in 2014, the plan amendment does not need to be adopted until the end of the plan year that begins in 2015.
The IRS said in the Notice that it intends to amend the 125 regulations to reflect this expansion. Until that happens, plans can rely on the Notice.