What Is A Cafeteria Plan For Health Insurance? 
A `` cafeteria plan '' refers to the section 125 of the tax code . A cafeteria plan allows you to have dollars deducted from your payroll at your employment to pay for some health insurance costs with `` pretax dollars '' like child care or prescriptions and doctor visits expenses , and to save for retirement . While the plans may vary from employer to employer in exact details you would be smart to utilize that `` cafeteria plan '' . One word of caution - make sure any dollars saved if not used this year rolls over to the next year and that you DO NOT LOSE THE DOLLARS 