Cafeteria Plan and Stage Agency--question of Medical FSA liability

[Guest Shawn Bailor]

I have a state agency department in Louisiana that is very interested in adopting a Cafeteria Plan. Louisiana law suggests that the agency cannot be liable for an employee who has claimed more than he/she has contributed into a Medical FSA.

I have heard about an insurance policy that covers the department liability for "unfunded" claims during the plan year. Does anyone know of an insurance carrier with this product? How anyone ever had experence with this kind of group situation and might know of another way to structure a Cafeteria Plan around the issue of liability

Shawn Bailor

Cafeteria Plan Client Representative

225-926-6370

sbailor@omniinsurance.com

[GBurns]

Since the State Employees Group Benefits Program and other large employers in the state of Louisiana have regular FSAs, I suggest that you look again to make sure that there really is such a "suggestion", as you put it, in the law.

In any case how could a state agency that is governed by and participates in the SEGBP set up its own Cafeteria Plan separate from that which is already in place as part of their plan.

I would be surprised that there was such an insurance product. The nearest thing that I have come across was for a discriminatory executive plan (Exec-u-Care and Exec-u-Med) which would not be suitable for youe application.