United Benefit Advisors Insight and Analysis Blog

Cafeteria Plans: How to Handle Participant Contributions

Posted by: Danielle Capilla    Oct 20, 2015 12:00:00 PM

Cafeteria plans, or plans governed by IRS Code Section 125, allow employees to pay for expenses such as health insurance with pre-tax dollars. Employees are given a choice between a taxable benefit (cash) and specified pre-tax qualified benefits, for example, health insurance. Employees are given the opportunity to select the benefits they want, just like an individual standing in the cafeteria line at lunch.

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Topics: ACA, section 125 plans, PPACA Affordable Care Act, Danielle Capilla, cafeteria plan

New ACA Implications for Cafeteria Plans: Change in Status and Changing Employee Elections

Posted by: Danielle Capilla    Jul 21, 2015 12:00:00 PM

Cafeteria plans, or plans governed by IRS Code Section 125, allow employers to help employees pay for expenses such as health insurance with pre-tax dollars. Employees are given a choice between a taxable benefit (cash) and two or more specified pre-tax qualified benefits, for example, health insurance. Employees are given the opportunity to select the benefits they want, just like an individual standing in the cafeteria line at lunch.

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Topics: employee benefits, section 125 plans, PPACA Affordable Care Act, Danielle Capilla, cafeteria plan, IRS Code Section 125

Top 10 Blogs of 2014

Posted by: Bill Olson    Jan 16, 2015 1:00:00 PM

 

We’ve rounded up the most popular UBA blogs of 2014, which have garnered thousands of views.

 

10. UBA Releases 2014 Health Plan Survey Executive Summary.

Recent survey data from the 2014 United Benefit Advisors Health Plan Survey, the nation's largest health plan survey, shows that employers continue to shift a greater share of expenses to employees through out-of-pocket cost increases and reductions in family benefits, as well as delay many effects of the Patient Protection and Affordable Care Act (PPACA) by utilizing an early renewal strategy. More

 

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Topics: health plan survey, UBA, section 125 plans, PPACA Affordable Care Act, IRS, Self-Funded, HHS, EEOC, blog, Skinny Plans, out-of-pocket limits, top 10

Is the Advent of the Marketplace a Change-Of-Status Event Under Section 125 Plans?

Posted by: Bill Olson    Nov 13, 2013 11:57:00 AM

The IRS does not consider the availability of the health exchanges/marketplaces a change in status event that would allow an employee to make a mid-year change under a Section 125 plan. However, the IRS has said that it will allow an employer with a non-calendar year plan to amend the plan to allow employees to make mid-year election changes to move from the plan to the marketplace, to allow employees who previously declined coverage to enroll in the plan as of Jan. 1, 2014, or both. (Because coverage purchased in the marketplace will be effective Jan. 1, 2014, calendar year plans should not have this issue.) There had been some question about whether this option was only available to large employers; the IRS has now clarified that employers of all sizes may amend their plan to allow for mid-year changes because of the new marketplace coverage.

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Topics: ACA, health marketplace, health care reform, PPACA, section 125 plans