What if there are health insurance provider requirements that prohibit the employer from paying less than 50% of the premium (like Blue Cross, etc.)?
• All Section 125 amounts are “deemed to be employer contributions” per IRS Proposed Reg. 1,129-1 Q &A. The issue of adverse selection is addressed in that LibertySmart actually increases the benefit to the employees so they are encouraged to participate in the group health plan as well as LibertySmart.
