section 125 controlled group question

[wsp]

Forgive me for I'm still new at this medical stuff..

I have a client, Company A, that has another company, Company B, pulled into their medical plan as a sister company in order to obtain the reduced premium rates. The two companies share common ownership but there is no controlling interest on the part of any 3 owners thus no controlled group environment

If Company A sponsers a section 125 plan can they allow the employees from Company B to particpate even though there is no controlled group relationship? Do they by default?

Now, assuming they are not part of Company A's 125 plan, if Company B has been taking out the premiums to pay the medical premiums pre-tax and there is no governing 125 plan...what do they do?

[Guest kwn]

Does your group qualify as an Affliated service group?