Partner alternatives to participating in a cafeteria plan

[RPA67]

Hello,

We have a law firm client that is looking for options to making their partners whole because they have to pay 100 percent of the cost of their coverage outside the cafeteria plan. This may not make them whole, but  the only option I can think of might be for the partnership to pay a flat amount to each partner (or maybe just the cost of EE only coverage)  for the coverages as a business expense? I would recommend the same flat amount as each partner shares in the partnership’s profits, so the dollar amount contributed to the partnership should not favor family coverage over single or spousal coverage. The partner may need to include the payments in gross income, which he should be able to deduct on his income tax return.   Are there any other options?

Thanks in advance!