Cancer Insurance in a POP?

[Dawn Hafner]

Has anyone ever looked at if Cancer Insurance premiums can be an included benefit in a POP? I wasn't even aware of what this was. Cancer insurance provides for reimbursement of travel, meals & lost wages associated with their cancer treatment. It does not seem like this type of coverage would be allowed, but wondered if anyone else was familiar with this. Thanks.

[Joe Priselac]

This type of insurance is a permitted tax-free expense.

[KJohnson]

IRS recently ruled that similar "cancer" policies were permitted in a flex plan in TAM--199936046. This TAM gives a decent discussion of when supplemental policies will be considered a accident and health plan (o.k) and when they will be considered deferred compensation plans (not o.k.)