Managed care plan offered by an employer to his or her employees that allows them to select the type and amount of benefits from among options the employer offers. It also allows employees to make contributions required for their choice of benefits with before-tax dollars. Also called cafeteria plan, flexible benefit option, flex plan , or flexible compensation .
Insurance Encyclopedia
Flexible benefit plan (Health Insurance)
A customizable plan for employee health insurance. Employees can choose benefits to suit their requirements.
Flexible Benefit Program
Allows each employee to choose among types and amounts of employee benefits. The plan sponsor may require minimum amounts of certain benefits such as health insurance to meet its social responsibility goals.
Flexible compensation
See: flexible benefit plan and cafeteria plan .
Flexible premium annuity
Type of deferred annuity investment contract that gives the buyer the ability to vary the amount of each premium payment to the insurance company during the accumulation period.
Flexible premium life insurance
See: indeterminate premium life insurance .
Flexible premium policy (Life Insurance)
A policy wherein the insured can modify the amount and scheduling of premium payments.
flexible spending account (FSA)
See: dependent-care spending account .
Flexible spending account (Health Insurance)
An account made up of funds deducted from an employee’s pretax earnings. This account can be used to pay for child care or medical costs not already covered by the plan. Any money left in the account at the year’s end is forfeited.
Flexible Spending Arrangement (FSA)
-An account that is often funded through a voluntary salary reduction agreement and allows the account holder and dependents to pay or be reimbursed for qualified out-of-pocket medical expenses with pre-tax dollars. FSAs allow $500 each year to be rolled over into an FSA for use in the following year. Beyond that limit FSA dollars are “use-it-or-lose-it” benefits, meaning that they are forfeited if not used for qualified expenses during the year.