Advantages and Disadvantage for Flexible Benefit plans

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Employees are more understandable to benefit increase

Advantage

Employees choose package that stratifies there needs

Advantage

Introduction to new benefits are less costly

Advantage

Creates administrative burdens

Disadvantage

Employees make bad decisions on benefits to choose

Disadvatage

Flexible benefits are subjected to discrimination (HIPPA's) within Section 125 IRS

Disadvatage

Adverse Selection

Dusadvatage


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