What Types Of Insurance Can Be Offered In A Cafeteria Plan?

The benefits most often included in a Cafeteria Plan are health insurance and the ability for the employee to pay employee-paid premiums with pre-tax dollars.

Typically, the employer will pay a share of the monthly health care insurance premium and the employee will pay the remainder of the monthly premium. A primary purpose of a Cafeteria Plan is to allow employees to pay their share of insurance premiums on a pre-tax basis.

Health Care plans, also referred to as accident and health care plans by the Internal Revenue Code (the Code), that may be offered in a Cafeteria Plan include:

• Medical insurance including premium only plans, self or fully insured plans, indemnity plans, HMOs, PPOs, stop-loss plans, and Health Flexible Spending Arrangements (HFSAs)
• Vision care
• Dental insurance
• Specific disease coverage (e.g., insurance policies that pay a specified amount if the individual is stricken with cancer)
• Intensive care and hospital reimbursement policies
• Accidental death and dismemberment insurance
• Medicare supplement plans

The regulations specifically include Premium Only Plans (POP). This term is typically used to refer to a fully insured health insurance premium where the employee pays a portion or the entire health care premium through the Cafeteria Plan.

Related Links

• The Cafeteria Plan Training & Certification Program
• The Leave Management Training & Certification Program

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