Are discount healthcare programs allowable premium expenses?

[Guest msfixit29]

I have a client that is offering an additional discount program to their employees that if they choose to get the additional life insurance they can receive these benefits free, but if they choose not to they have to pay a regular amount weekly for the program. They want to know if they can run this through the premium portion of their flex fund.

Have any of you come across this one. The program also allows for a discounted legal service. Didn't know if this could be allowed either?

Thanks for your input!

msfixit29

[Ron Snyder]

The legal has to be run under a separate plan. See Code section 120.

The discount card premium will be considered a medical expense to the extent that it is used to incur (or reduce) section 213(d) medical expenses. Is it a "premium" or a reimbursable medical expense? While it is arguable that medical premiums to insurance companies or health plans generally include a charge for using their network, the discount card should be legally incorporated into the employer's health plan for its employees in order for it to be called premium.