One other benefit would be that you may be able reduce the costs of fringe benefits. So as you can see there are benefits to offering this type of plan. Things offered in Flexible Plans You may be wondering how can it be so personal. Cafeteria plans offer many options to choose from. Below are some brief descriptions of some things that may be offered.
Most plans offer a variety of plans.
There are usually traditional plans, Preferred Provider Organizations, and Health Matinence Organizations to choose from. This allows each meet their needs for medical coverage. This is usually set up as a reimbursement account. You deposit a set amount and it is reimbursed to you without the taxes. Disability Insurance Provides employee with income if they should become disabled These are just some examples of what could be offered in a Cafeteria Plan.