Premium Only Plans

States mandate employers to set up cafeteria plans

Employers in many states are now, or soon will be, required to adopt a cafeteria plan, meeting the criteria of Section 125 of the Internal Revenue Code. Mandates differ from state to state.

Cafeteria plans, also referred to as Premium Only Plans (POP), allow employees to use pre-tax dollars to pay their portion of the premium for their employer-sponsored health coverage.

States with cafeteria plan mandates

Effective Date

Massachusetts

7-01-07

Connecticut

10-1-07

Missouri

1-01-08

States considering cafeteria plan mandates

California
Kansas
New Jersey
Rhode Island

Watch this site for updates as additional states implement cafeteria plan mandates for employers.

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