Section 125 Cafeteria Plans

Check out the benefits of these premium only plans and flexible spending accounts.

A Section 125 Cafeteria Plan, which can include a Premium Only Plan and Flexible Spending Accounts, is a great way for employees to save money by using tax-free funds to pay for certain eligible expenses. Employee contributions also save the employer money by reducing payroll taxes.

HealthEquity|WageWorks, a leading provider of Consumer-Directed Benefits, is our preferred partner to manage your company's Premium Only Plan and Flexible Spending Accounts.

Premium Only Plans
This is a tax-savings plan for groups where employees can share in the cost of benefits through payroll deduction. POP plans allow employees' premiums to be deducted on a pre-tax basis.

Benefits of Flexible Spending Accounts (FSA)

  • Employees can set aside a certain amount of each paycheck into an account before paying income tax.  Participants can use their accounts to pay for eligible out-of-pocket medical, vision and dental expenses.
  • Employers save on payroll taxes and can help cushion health insurance increases to lessen the impact on the employee's paycheck.

Types of FSA Plans

  • Healthcare FSA (also known as a Full Purpose Healthcare FSA or all-IRS Healthcare FSA) – This account can be used to pay for eligible FSA expenses such as office visit copays, deductibles, prescription drugs, eyeglasses, dental care, orthodontics and much more.
  • HSA-Compatible FSA (also known as a Limited Purpose FSA) – This plan is ideal for employees who are actively participating in a Health Savings Account (HSA). In order to retain HSA eligibility, the plan is limited to paying for qualified dental and vision services, and options are available to convert to a Full Purpose Healthcare FSA once health plan deductible requirements have been met for the year.
  • Dependent Care FSA – This account can be used to pay for eligible child or elder care expenses while the employee is working.

Premium Only Plan Flyer and Application

Flexible Spending Account Flyer

Blue Cross and Blue Shield of Louisiana offers groups multiple solutions for their employees’ savings and spending needs. To learn more about these solutions, click here.

*HealthEquity|WageWorks is an independent company that offers Section 125 administration. This is not a Blue Cross and Blue Shield of Louisiana product or service. HealthEquity|WageWorks is solely responsible for the services it provides.