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Can a company have more than one Section 125 plan Texas

Discussion in 'Health Insurance, HMO, HIPAA & Disability' started by txls, Oct 10, 2017.

  1. txls

    txls Law Topic Starter Well-Known Member

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    Jurisdiction:
    Texas
    So we have an insurance sales rep pitching their products and they are telling us that we can save money with them and it would be "another 125 plan." I asked if it would be the same plan year as our current 125 plan. They said no it would really be better if you do it at a different time so it isn't so much to handle at the same time. Well I'm very skeptical and I'm not really interested in what they have to offer anyway, but my boss is having a hard time telling her no. Anyway, is it possible to have more than one cafeteria plan with different plan years?
     
  2. army judge

    army judge Super Moderator

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    You should advise your boss to seek advice about HIS business with HIS attorney.

    The internet might be harmless to discuss your options about a speeding ticket, an eviction, or a personal debt unpaid of $200.

    No one should seek advice about his or her business from anyone but a professional licensed to dispense such advice.
     
  3. txls

    txls Law Topic Starter Well-Known Member

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    I understand, just doing some preliminary research.
     
  4. hrforme

    hrforme Active Member

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    Is it the one with the duck? If so, run far away.....

    You might post on the forums on Benefitslink... there are some heavy hitters out there
     
  5. txls

    txls Law Topic Starter Well-Known Member

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    No its not the duck, but similar. I could have already told her to go away, but her husband worked here for years, and she's friends with some top people. I'm looking for the way to tell her to go away that is completely out of my hands. "Sorry I don't think the IRS will allow that" would be perfect.
    Thanks for the other reference.
     
  6. ElleMD

    ElleMD Well-Known Member

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    If your question is just can you have have 2 separate plan years for various plans, you may. You could also gouge your eyes out with a rusty spoon. 2 OEs a year with different benefits in each is about as appealing as the spoon.

    Diplomatically, if the powers that be are insistent, you have to pick your battles, but I would advocate at least syncing up plan years using whatever you think will persuade them. Employees being confused, administrative costs, your sanity, etc.

    I personally am not a fan of using a company solely because of an affiliation with a current employee. You've been at this game long enough to know that keeping those relationships separate can be a challenge and that employee could leave at any time, or the service they provide could be less than stellar and lead to problems in your workplace. If you truly want to offer a certain benefit, that should be a business decision and it should go out to bid, with your company contacting past and current clients, comparing rates and services, etc. The last thing you want, aside from double OE, is to sign on with a company that isn't up to snuff and charges too much.
     
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  7. txls

    txls Law Topic Starter Well-Known Member

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    Thanks Elle, I was hoping you would respond here. I really don't want to do this but trying not to hurt feelings-bleh.
     
  8. cynthiag

    cynthiag Active Member

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    We have a supplemental benefits plan that's similar to the duck but our agent for that plan works closely with our life & health agent so when our plan was set up everything was done to coincide with the Section 125 plan year and OE for our medical. Makes it much easier administratively.

    I do agree with Elle about the idea of signing on with somebody who is associated with/related to an employee. There are plenty of things that could go wrong with that situation.

    Good luck!
     
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  9. army judge

    army judge Super Moderator

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    As long as you properly advise those associated with making the decision, good or bad, I don't see why you would be blamed.

    You've always impressed me as diligent and thorough, so just keep doing what you've always done.
     
  10. txls

    txls Law Topic Starter Well-Known Member

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    Thank you sir. I have pretty thick skin. I'm not too worried about it. This same lady used to represent the duck and there was some flap when we did not let her come in and sell that. But then her friend who was bitchy about it is generally bitchy about most everything.
     
  11. cbg

    cbg Super Moderator

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    Is it possible? Yes, it's possible.

    Is it a good idea? Hell, no. Just because you can do it doesn't mean you should.
     
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  12. txls

    txls Law Topic Starter Well-Known Member

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    I agree. Thanks
     
  13. txls

    txls Law Topic Starter Well-Known Member

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    Well that's taken care of and I don't think there will even be hard feelings.
     
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  14. cbg

    cbg Super Moderator

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