Accounts offered and
administered by employers that provide a way for employees to set aside, out of their
paycheck, pretax dollars to pay for the employee’s share of insurance premiums or
medical expenses not covered by the employer’s health plan. The employer may also
make contributions to a FSA. Typically, benefits or cash must be used within the given
benefit year or the employee loses the money. Flexible spending accounts can also be
provided to cover childcare expenses, but those accounts must be established separately
from medical FSAs.
Flexible benefits plan (Cafeteria plan) (IRS 125 Plan) –
administered by employers that provide a way for employees to set aside, out of their
paycheck, pretax dollars to pay for the employee’s share of insurance premiums or
medical expenses not covered by the employer’s health plan. The employer may also
make contributions to a FSA. Typically, benefits or cash must be used within the given
benefit year or the employee loses the money. Flexible spending accounts can also be
provided to cover childcare expenses, but those accounts must be established separately
from medical FSAs.
Flexible benefits plan (Cafeteria plan) (IRS 125 Plan) –
A benefit program under
Section 125 of the Internal Revenue Code that offers employees a choice between
permissible taxable benefits, including cash, and nontaxable benefits such as life and
health insurance, vacations, retirement plans and child care. Although a common core of
benefits may be required, the employee can determine how his or her remaining benefit
dollars are to be allocated for each type of benefit from the total amount promised by the
employer. Sometimes employee contributions may be made for additional coverage.
Fully insured plan - A plan where the employer contracts with another organization to
assume financial responsibility for the enrollees’ medical claims and for all incurred
administrative costs.
Gatekeeper - Under some health insurance arrangements, a gatekeeper is responsible for
the administration of the patient’s treatment; the gatekeeper coordinates and authorizes all
medical services, laboratory studies, specialty referrals and hospitalizations.
Section 125 of the Internal Revenue Code that offers employees a choice between
permissible taxable benefits, including cash, and nontaxable benefits such as life and
health insurance, vacations, retirement plans and child care. Although a common core of
benefits may be required, the employee can determine how his or her remaining benefit
dollars are to be allocated for each type of benefit from the total amount promised by the
employer. Sometimes employee contributions may be made for additional coverage.
Fully insured plan - A plan where the employer contracts with another organization to
assume financial responsibility for the enrollees’ medical claims and for all incurred
administrative costs.
Gatekeeper - Under some health insurance arrangements, a gatekeeper is responsible for
the administration of the patient’s treatment; the gatekeeper coordinates and authorizes all
medical services, laboratory studies, specialty referrals and hospitalizations.