Sponsoring a Plan


There are many benefits associated with offering FSAs, HRAs, or HSAs; however, the main reason many employers sponsor a plan is to enhance their current employee benefit program and share more of the health care costs with the employees in the current environment of steadily increasing costs. 

Since these plans permit employees to reduce their earnings to pay for benefits, they reduce their reported income, and therefore, reduce taxes paid to the IRS. The employee is still paid the same wages; however, by redirecting a specified amount to pay for expected out-of-pocket costs, the employee is able to take home more money with a qualified plan than if they were paid with after-tax dollars.

In the competitive and demographically diverse market for qualified employees, cafeteria plans offer a flexible way to allow your employees to choose the benefits that best fit their needs and the needs of their family.

Recent increases in health care costs have heightened employer awareness and demand for benefit plans and employer reimbursement accounts as part of an integrated strategy to contain cost and provide tax-advantaged benefits to employees. Employees gain appreciation of the benefits package offered when programs like FSAs and HRAs are offered. 

Employers sponsoring plans must first develop a plan that takes into consideration the current employee demographics and benefits available. CareFlex engages all employers to determine what employee benefits program will foster and strengthen their existing benefits package.

Download the Reimbursement Plan Comparison.