Loki Anderson asked:

Eva, do you or anyone else on the list know what is
meant by "cafeteria-style" benefit plans? That
particular phrase is new to me.

[TB]  A cafeteria plan is a plan where each employee is given a sum of
money and allowed to "spend" it on his/her choice of benefits.

Each benefit has a price.  For example medical insurance may cost
$1,800, dental $400, disability $1,000, dependent medical $1,500, child
care $4,000.  Sometimes even vacation days are included in the mix.

Each employee will then decide which of the benefits they want, it gets
the name because it is like going down a cafeteria line and picking out
what you want to eat.

In the Minneapolis case the theory is that it does an end run around
the prohibition against offering health insurance to anyone other than
a married spouse and children.  

The plans are generally popular with employees because they can get
what is important to them.  Maybe they don't have kids and don't
particularly care about daycare benefits but they generally have high
medical bills and want the best coverage they can get.



Terrell Brown
Loring Park





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