Health flexible savings accounts (FSAs) offered as part of a cafeteria plan
Due to the cost of healthcare and other benefits available under the cafeteria plan
, cafeteria plans
are widely used and employees enjoy the benefits.
Second, cafeteria plans
and voluntary benefits (such as life or disability or cancer insurance) tend to come further down the list of fringe benefits that firms offer (Abraham, DeLeire, and Royalty 2009).
Therefore, it was legally unclear whether cafeteria plans
could be used to fund medically underwritten health insurance without violating HIPAA.
Qualified Health Plans' May be Offered Through Cafeteria Plans
: A ''qualified health plan" offered through a health insurance Exchange will not be a qualified benefit that may be offered through a cafeteria plan
Kushner argued that when owners of small businesses realize that they will not be able to benefit from cafeteria plans
which they might want to offer to their employees, they simply lose interest.
A cafeteria plan
allows employees to contribute a certain amount of their gross income to a designated account before taxes are calculated.
Department of Treasury and the Internal Revenue Service issued proposed regulations to provide guidance under section 125 of the Internal Revenue Code relating to cafeteria plans
WHAT IT INCLUDES: In addition to health insurance, cafeteria plans
can cover automobile, group term life insurance and business travel accident insurance.
are "fringe benefits" under which employees may choose from various options to fit their health-care needs, up to a specified dollar value.
An employer can now add a "grace period" to its cafeteria plans
of up to 2 1/2 months immediately following the end of the plan year.
The AICPA said cafeteria plans
should be offered to small business employees as well as employees of larger companies and government agencies.