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Cafeteria Plans

To a great extent, you may have to swallow the cost of rising health care benefits. But one alternative that many employers are taking advantage of is the cafeteria plan. These plans can reduce your costs and give employees more choice and flexibility of benefits. Unlike traditional one-size-fits-all benefits – which offer employees a choice only between accepting or rejecting an employer’s benefits package – cafeteria plans offer employees an array of tax-free “qualified benefits" from which to choose and a “benefit allowance” with which to purchase them.