Comments Concerning Cafeteria Plan Regulations
Under Internal Revenue Code Section 125 III. Comments E. Comments on the Final 2000 Regulations and previously issued cafeteria plan regulations - Expanding the scope of the cafeteria plan regulations to apply to other types of programs that provide group insurance
The Service has informally requested comments on whether the cafeteria plan regulations should be expanded to apply to other types of programs, besides employer-sponsored benefit plans, that provide “group insurance.” For example, should the regulations apply (i.e., should the permitted election changes apply) if an employee becomes eligible and elects coverage under a foreign government health plan or a military health plan? Although in many instances US employees who work for their employers overseas (expatriates) remain in the employer’s US health plan, there may be instances where the employee moves overseas indefinitely and would prefer coverage under the local foreign government health plan. We recommend that the cafeteria plan regulations be expanded to apply to other types of programs that provide “group insurance” and welcome an opportunity to discuss this issue further with the Service.
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