Cafeteria Plans

To some extent employers and employees alike have simply had to bear the burden of rising health care benefits costs. To help mitigate these costs, while offering employees more choice in benefits options, many employers have taken advantage of the option to offer cafeteria plans.

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.