The Top Section 125 Cafeteria Plan Providers

The Top Section 125 Cafeteria Plan Providers

A summary of the top 5 Section 125 Cafeteria plans providers:

1. The Champ Plan

The CHAMP Plan™ is a self-funded, personalized, clinical preventive healthcare program that has been designed to complement an organization’s primary healthcare insurance in such a way that it makes the organization’s healthcare coverage highly cost-effective and beneficial in terms of employee retention and satisfaction rates.

The employers who have employees enrolled in the CHAMP Plan™ will have a dashboard view of their company’s overall health profile. This will give the employer a visual of the health condition of its employees based on their average Life Score and will empower employers to have better group discussions about the health of their employees. Individual employee data will not be exposed to the employer for privacy concerns. However, the average life score of the company’s human capital will be visible to the employer, and they will be able to improve it. They can also know when their employees have an optimum average life score and are ready for a new challenge.

Through all those functionalities, the application helps employers keep track of their employees’ current and projected healthcare concerns and improve their situations to create a healthier and happier team.

2. Zenefits

Zenefits is a benefits insurance company that offers HRIS software and section 125-compliant health insurance options like medical coverage, HSAs, and FSAs. They also provide HR assistance and can handle payroll. Their HR and benefits start at $9 per month per employee, with a $40 monthly service charge. Zenefits seems to be a comprehensive, all-in-one solution for small to medium-sized businesses​1​.

3. SimplyWorks (Justworks)

SimplyWorks, also known as Justworks, is a low-cost PEO service that offers entry-level pricing for small businesses who wish to start delivering employee benefits. Their PEO allows you to pick and choose the services you want, and you pay for different levels of service. This makes them a more flexible option, though not as comprehensive as ADP TotalSource. The cost ranges from $39 to $99 per employee per month​1​.

4. Gusto

Gusto is a payroll service that also provides HR services such as employee onboarding. They provide ACA-compliant health insurance in 24 states. Unlike some other providers, you may need to be more hands-on in ensuring your company satisfies all of the section 125 standards for companies in your industry, size, and region. Pricing for Gusto begins at $6 per month per employee, plus a $39 monthly service fee. They offer a free 30-day trial, which could be a good opportunity to evaluate their services​1​.

5. Aflac (in partnership with WageWorks)

Aflac, in partnership with WageWorks, helps companies administer premium-only plans and Flexible Spending Accounts (FSAs) provided by WageWorks. Aflac offers supplemental insurance policies to employees on a pre-tax basis, and they also extend offerings and savings with Unreimbursed Medical (URM) and Dependent Day Care (DDC) FSAs. Aflac also provides a takecare® Card, which makes accessing Unreimbursed Medical (URM) funds at the point of purchase easy for employees. It functions like a credit card, allowing employees to pay for eligible medical, dental, and prescription expenses without using out-of-pocket dollars​2​.

For information about the specific fees associated with WageWorks’ consumer-directed benefit accounts such as Cafeteria Plans, you may need to contact them directly or visit their website as the information wasn’t readily available online during my search​2​.