Section II: BASE® 125 Cafeteria Plan

Quiz 2: Who is eligible for the BASE® 125 Cafeteria Plan?

1.Only employers who offer a group health insurance plan can offer a BASE® 125 Cafeteria Plan.

1. Answer: b. False

Any employer who is looking to offer benefits to their employees is eligible whether or not they offer a group health insurance plan, and employees can participate whether or not they are insured under an employer’s health insurance plan.

2.Only one funding option can be selected for an employer to provide a BASE® 125 Cafeteria Plan.

2. Answer: b. False.

Employers have the ability to pick and choose what they want from the following options: FSA, DCAP, and POP.

3.Which funding option would an employer provide through a 125 Cafeteria Plan if an employee sets aside money from each paycheck to pay for dental, vision, co-pays and other medical expenses?

3. Answer: c. FSA

The FSA allows employees to set aside money from each paycheck to pay for qualifying medical expenses, such as dental, vision, co-pays, etc

4.How many funding options allow for employees to pay for health insurance premiums?

4. Answer: a. 1

The POP allows employees to pay for group sponsored health insurance premiums, while DCAP allows for dependent care expenses and FSA allows for medical expenses.

5.Which option would an employee with dependent care expenses possibly want to consider?

5. Answer: b. DCAP

An employee with children might consider electing DCAP to set aside money from each paycheck to pay for dependent care expenses.

6.Employers are able to implement a Cafeteria Plan as a means of enhancing their current benefit plan to:

6. Answer: b. Attract and retain employees.

Employers are able to implement a Cafeteria Plan as a means of enhancing their current benefit plan to attract and retain employees.

Congratulations!

You have successfully completed the BASE® Certification program.

You will be receiving a certificate of completion that will be mailed to your Agency Manager’s office.

For further questions, please contact BASE® at 1-877-342-5105 or visit us on the web at www.BASEonline.com.

Thank you for taking this quiz.

Continue to Section II: Chapter 3!