Many websites claim that if health insurance premiums are paid for
with pretax dollars, then the person cannot cancel their insurance
unless they have a "qualifying event", or once per year (usually
January, or during an annual open enrollment).  Here is an example:
http://naples.cc.stonybrook.edu/Admin/HRS.nsf/0/5fece5b8344695e085256c72005cae0f?OpenDocument

I haven't been able to find an actual IRS publication that states
this, however.  I'd like a link to an actual government regulation
stating this rule, ideally from the IRS, Treasury Dept., etc.  A
sufficient answer will give a link to an IRS or Treasury document that
states this rule (i.e. an IRS publication for consumers, businesses,
etc.)  An excellent answer will also give a link for the actual US
code, IRS ruling, etc. that defines this.

I'm not interested in the rules about cafeteria plans ("125 plans")-
the situation I need an answer for is a non-125, normal health
insurance plan.

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Clarification of Question by formica34-ga on 21 Dec 2004 08:48 PST

If the answer to the question is that it's NOT an IRS requirement,
then an acceptable answer would be a link to the relevant tax code
where such a rule would likely be if it existed.  It's difficult to
prove that something's not a rule (especially with the enormous IRS
code!), so I'd be pretty flexible with this.

I spent a while looking into your question, and I've come to the
conclusion that limiting the open enrollment period to once-a-year
isn't anything that the IRS requires.  I think SUNY imposes this rule
as a matter of administrative convenience.
Google Answers Researcher
Richard-ga