Are there participation requirements for voluntary benefits plans?

Yes. Voluntary benefits (those for which the employee pays 100% of the premium) can be a great way for employers to begin offering benefits if they currently do not. And for those that have a robust offering, “voluntary” can round out that offering by giving employees access to coverages not available on an individual basis. Keep in mind though that there are participation requirements for voluntary plans just as there are for employer-sponsored plans.

The following are examples showing how participation requirements differ between voluntary and employer-sponsored Dental and Life plans from carriers in the small group market:

Dental Coverage

Delta Dental

• Voluntary: A minimum of five eligible employees must participate, except if there are less than five eligible, then a minimum of two must participate.
• Employer-Sponsored:
  – If the employer pays 100% for both employees and dependents: 100% of eligible employees and 100% of their dependents must participate.
  – If the employer pays 75-99%: 75% of eligible employees and 50% of their dependents must participate.

Principal

• Voluntary: Must have 10 or more eligible employees, 25% of whom participate, but with no less than five participating.
• Employer-Sponsored:
  – If the employer pays 100%: 100% of eligible employees and 50% of their dependents must participate.
  – If the employer pays 50-99%: 75% of eligible employees and 50% of their dependents must participate.

Humana

• Voluntary: Two must participate.
• Employer-Sponsored: 50% of eligible must participate.

Life Coverage

MetLife

• Voluntary: 25% of, but no fewer than 10, eligible employees must participate.
• Employer-Sponsored: 100% of eligible must participate.

Principal

• Voluntary: 20% of, but no fewer than five, eligible employees must participate.
• Employer-Sponsored:
  – If the employer pays 100%: 100% of eligible employees must participate.
  – If the employer contributes <100%: 75% of, but no fewer than three, eligible employees must participate.

Reliance Standard

• Voluntary: 10% of, but no fewer than five, eligible employees must participate.
• Employer-Sponsored: 100% of eligible must participate.

As you can see, the participation requirements for voluntary plans are quite reasonable, making them a good solution for employers looking to offer coverage for the first time or to expand on what they currently offer.