What if the employer contributes to a “Cafeteria” plan?
Cafeteria plans do not qualify as a health care plan providing both physician and hospitalization coverage and as such, all hours worked would be considered “uncovered”. One of the underlying goals of the Health Care Reform was to have more employers offering actual health care plans to their employees. As we understand Cafeteria plans, they are a means for an agreement related to different pre-tax options, one of which might be to pay for health care costs. We also understand in many cases it is the precursor of Flexible Spending accounts, which we have steadily maintained is not a “plan” within the intentions of this legislation. Based on prior situations and communications with those who were heavily involved in the process, the employer has to offer “a plan” – a plan that the employer has arranged and contracted with an insurance carrier. Providing the employee with a source to obtain coverage does not fall within this scope. This belief is further supported by the ability of the e
