MORE STATES IMPLEMENT SECTION 125 CAFETERIA PLAN REQUIREMENTS
Following Massachusetts’ lead concerning making health care more affordable, Rhode Island,
Connecticut, and Missouri have recently enacted new Cafeteria Plan mandates.
Rhode Island
Rhode Island now requires employers who have an annual average employment of more
than 25 employees for six consecutive months to adopt a Section 125 Cafeteria Plan. The Plan
design must permit all employees and/or their dependents to purchase and pay for health insurance
premiums. The insurance may be purchased either through the employer or individually.
The effective date is July 1, 2009.
There are no filing requirements under this mandate.
Please see http://www.rilin.state.ri.us/PublicLaws/law07/law07125.htm for more details.
Connecticut
Connecticut now requires all employers who provide health insurance to give their employees
the opportunity to pay their portion of the premium pre-tax through a Cafeteria Plan. The
mandate does not apply to individual policies. The effective date is October 1, 2007.
There are no filing requirements under this mandate.
Please see http://www.cga.ct.gov/2007/ACT/PA/2007PA-00185-R00SB-01484-PA.htm for more details.
Missouri
Missouri now requires all employers who provide health insurance and who contribute to a
portion of the premium to give their employees the opportunity to pay their portion of the premium
pre-tax through a Section 125 Cafeteria Plan. This plan is mandatory for all employers who
provide and pay for health insurance regardless of the number of employees. The law does not
apply to employers who offer insurance through a self-insured plan or a self-funded group, nor to
those who may offer a group health insurance plan option, but who do not pay any portion of the
premium. The effective date is January 1, 2008.
There are no filing requirements under this mandate.
Please see http://www.house.mo.gov/bills071/billpdf/truly/HB0818T.PDF for more details.