Guest Cindyd Posted January 21, 1999 Posted January 21, 1999 I understand after HIPAA that cafeteria plans cannot include LTC insurance as a qualified benefit. However, are employers allowed to included LTC insurance on an after-tax basis in a cafeteria plan, as a type of taxable benefit, treated similarly to cash? [This message has been edited by Cindyd (edited 01-21-99).]
SLuskin Posted January 21, 1999 Posted January 21, 1999 Actually, LTC policies were always prohibited from Cafeteria Plans. After Congress/IRS decided that they would give the LTC plans tax qualification, they just restated that "LTC Plans can still not be a part of a Cafeteria Plan". Therefore, I would not put it in, even as a taxable benefit. It can be offered on a group basis outside of the plan just like UL should be offered outside the plan. The Benefits and Health Insurance lobbies are working on this issue.
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