How is loss of dependent status defined?

• A. The employee loses eligibility
• B. A dependent ceases to meet the plan’s eligibility criteria (e.g., age, student status)
• C. The plan terminates the dependent
• D. The plan increases premiums for dependents

Answer: (B)

Loss of dependent status means the person no longer satisfies the plan’s rules for who can be covered as a dependent. In most plans, dependents must meet criteria such as being the employee’s child and continuing to meet age limits or student/full-time status. When one of these criteria isn’t met anymore—for example, the child ages out or stops being a full-time student—the individual ceases to be a dependent, and coverage ends according to the plan’s terms. This is about a change in the dependent’s eligibility, not about the employee losing eligibility or the plan automatically changing premiums. The plan defines the exact moment the dependent loses eligibility, and that moment triggers the loss of coverage for the dependent.