Section 125

[Guest TimJay]

Does employer's health insurance plan qualify for section 125 when the only benefit for the employee is that his contribution(20%) is pre-tax? This is a H.M.O. which is negotiated with the employer through collective bargaining.

[SLuskin]

It will qualify if the employee has a choice of whether or not to pretax that 20%.

It will also qualify if the employee is given any sort of cash for not participating in the plan.

Is there also an option to add coverage for dependents and pretax that, or is this an "employee only" insurance plan?