Employers Increase Usage of Cafeteria Plans Due to New Federal Regulations
Summary
In order to qualify for premium reimbursement, the employee will provide proof the insurance was purchased on an individual basis; it cannot be tied to a group plan in any way.### Adel, IA, August 05, 2009 --( PR.com )-- Proposed regulations went into effect on January 1, 2009 that enabled businesses not offering group health care to help employees with the cost of rising insurance premiums.In order to qualify for premium reimbursement, the employee willprovide proof the insurance was purchased on an individual basis; it cannot be tied to a group plan in any way.Since January 2009, BASE has seen a 25% increase in the use of Cafeteria plans, and 70% of those employers off er the HCPR option.BASE® President, Terry Harrington, explains the potential savings: “Since the Health Care Premium Reimbursement option allows an employee to choose their own insurance plan and pay for it on a pre-tax basis, that already savesthe individual about 25%.Both parties save valuable dollars.”To learn more about the Health Care Premium Reimbursement Plan contact BASE® at 800-309-8012 or visit www.baseonline.com.About BASE®Established in 1999, BASE is one of the nation’s leading employee benefit administrators.