Governments that already have a Section 125 plan
in place and offer personal health care or dependent care spending accounts to employees need to make sure they are promoting the benefit and educating employees about how to take full advantage of this resource.
To overcome these barriers, several states in the past few years enacted laws that either require or assist employers to establish section 125 plans covering employees' health insurance premiums (Canchi 2008; Robert Wood Johnson Foundation 2009).
By reducing the effective price of insurance, section 125 plans might increase compliance with the new federal mandate to purchase coverage.
PPACA states that Section 125 plans
may not be used for individual insurance purchased through exchanges, but it is silent about individual insurance purchased outside an exchange.
In addition to medical expenses, dependent care expenses can also be paid through a Section 125 Plan
Heller and Jay Olin are on the staff of the Alpha Benefits Group, which specializes in Section 125 Plans
and is headquartered in Warrington, PA.
So, by structuring a flexible benefit plan with choice among nontaxable benefits only, you can create a so-called "benefits-only plan" that is less restrictive than Section 125 plans
Because of the tax revenue loss associated with Section 125 plans
, most of the current health care reform proposals debated in Congress call for the elimination of these plans as they pertain to health expenses.
In addition, they will have access to CompuPay's much broader selection of payroll products and related services including 401(k) retirement plans, workers compensation insurance, COBRA administration services and section 125 plans
KPO clients will see a seamless continuation of payroll services with CompuPay as well as an enhancement in additional employer-related services such as health benefits, workers' compensation insurance, 401(k) plans, section 125 plans
Kathryn has particular expertise in the areas of plan design for group health insurance and flexible benefits as well as section 125 plans
Established in 1959, Byerly & Company offers conventional group benefits consulting services as well as administration of health purchasing cooperatives, association group medical, life and disability programs, and Section 125 plans