Affordable Health Insurance Franklin, GA

Affordable health insurance Franklin, GA

What is a Cafeteria Plan?

Franklin Georgia health insurance

One of the best benefits your employer can give you on your affordable health insurance in Franklin, GA is a cafeteria plan. This provides you with pre-tax benefits. According to Section 125 of the tax code, employers can offer you the opportunity to deposit money from your paycheck into a cafeteria fund to cover your medical expenses. These contributions come off of the top of your salary, lowering your gross income. You won’t have to pay taxes on the money unless you use them for non-medical expenses. Allowable expenses on this benefit of your affordable health insurance in Franklin, GA are:

• Health expenses, and anything to do with health, such as new contacts, OTC medicines, and vitamins. • Help with adoption • Health Savings Accounts

How Does a Cafeteria Plan Work?

To participate in a cafeteria plan, you contract with Coventry One to withhold a certain amount of money from your paycheck every month. A Health Savings Account works the same way. However, an HSA is handled differently once you start making deposits.

When you make your first deposit into a cafeteria fund, you have access to the total amount you’ve contracted to pay for the rest of the year. If, at the beginning of the year, you end up needing every bit of the money you’ve promised to pay, the insurance company will send it to you. This is one of the benefits of affordable health insurance in Franklin, GA. You’ll just pay them back as the year progresses.

Strategies for Planning

Your affordable health insurance in Franklin, GA will probably feature an easy to afford copay. However, the additional benefit of a cafeteria plan will make your medical care even more affordable. Estimate how much money you expect to spend over the next year for medical care and supplies, and divide the amount by 12 months. You can figure in anything in that category except health insurance premiums. This is a good time to figure in those braces for the kids, or your new glasses. The expense of all of these medical services comes off of your pre-tax income.

Just be very careful of one thing: your affordable health insurance in Franklin, GA won’t be very affordable if you leave money, unused, in the cafeteria fund. After the fiscal year is over, you lose any money left in the fund. This is how a cafeteria fund is different from a Health Saving Account.

Your affordable health insurance in Franklin, GA may include a cafeteria fund. If so, don’t hesitate to participate in it. Even if it is just for a single monthly prescription, your savings with a Coventry One cafeteria fund will be worth the time.