Section II: BASE® 125 Cafeteria Plan

Chapter 2: Who is eligible for the BASE® 125 Cafeteria Plan?

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The BASE® 125 Cafeteria Plan provides a menu of options for health care savings for both the employer and employee. Any employer who is looking to offer benefits to their employees is eligible whether or not they offer a group health insurance plan, and employees can participate whether or not they are insured under an employer’s health insurance plan. As long as one employee participates in the 125 Plan, and that one employee is not the owner/shareholder or immediate family member, an employer could implement a Cafeteria Plan.

The BASE® 125 Cafeteria Plan allows employers to customize benefits and save money. BASE® has developed three different plan options to compliment any employee benefit program. Employers have the ability to pick and choose what they want from the following options:

FSA – Employee would elect to set aside money from each paycheck to pay for qualifying medical expenses, such as dental, vision, co-pays, etc.

DCAP – Employee would elect to set aside money from each paycheck to pay for qualifying dependent care expenses.

POP – Employee would elect to pay for an employer sponsored benefit, such as group health insurance premiums.

The funding option(s) selected will depict employee eligibility. Depending on the employee’s circumstances based on the above criteria, could mean the difference of whether or not an employee participates in the plan. Employers are able to implement a Cafeteria Plan as a means of enhancing their current benefit plan to attract and retain employees.