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
*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.