Does section 125 health insurance provide coverge? How does it work?!
Question:
Does section 125 health insurance provide coverge? How does it work?
i am confused by sect. 125 health insurance. does it provide coverage of medical procedures? it seems to me if I am setting aside $100 per month in this plan that those fund will hardly cover any medical expenses. are these funds in addition to coverage. please help!
Answers:
Section 125 refers to the tax advantages.
What is covered depends upon the underlying policy. If you are setting $100 per month in this plan you probably have a flexible spending account. This account is used to help pay for the procedures that the underlying policy doesn't pay.
Other than the flexible spending account you can have premium only plans, cafeteria plans, and many other types.
You will need to talk to your HR department or someone in your company that knows because every company can be set up differently and have completely different underlying policies.