As discussed in Lesson 1, t
he terms "cafeteria plan,” “flex plan,” and “section 125 plan” are all words
used to describe a flexible benefits plan. Flexible benefits plans include POP, FSA, HSA, DFSA and HRA. In this lesson we will go into more detail on Premium Only Plans and how to position them to an employer.
[Facilitator Notes: Premium Only Plan:
Allows employees to have their portion of the life and health insurance premiums deducted from their pay on a pre-tax basis.
Flexible Spending Account:
This benefit account allows participants to set aside pre-tax dollars to pay for certain types of qualified medical expenses.
Health Savings Account:
A tax-advantaged account that allows participants to set aside pre-tax funds to pay for qualified medical expenses incurred by the participant, their spouse, and any tax
dependents covered under the participant’s qualified high
-deductible health plan (HDHP).
Health Reimbursement Account:
Employers fund individual reimbursement accounts for their employees and define what those funds can be used for (e.g. specified out-of-pocket expenses such as deductibles and co-pays).
3 Lisa Buonocore EDET 709 Big Redesign