Cafeteria Plan Training Excerpts
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.
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