We have indicated that employee choice is a vital element in today\'s medical plans. The one-size-fits-all plan just does not work well with the diverse employee populations in American businesses. Read the following scenario about a hypothetical company struggling with its benefits options.

Bryan Construction, a company of 400 hundred employees, is considering the development of a Cafeteria Plan. The Benefits Committee has met to decide what type of plan will be offered. There are two factions within the committee: those that advocate a full flex credit-based plan and those that support the modular approach. In addition, there is heated discussion as to whether to incorporate flexible spending accounts and who will be responsible for the communication and enrollment activities surrounding the plan.

1. Compare and contrast the advantages and disadvantages of both the flex-based and modular forms of cafeteria plans.
2. Why is it necessary to include flexible spending accounts as part of the new cafeteria plan addressing both Healthcare Reimbursement Accounts and Dependent Care Accounts.
3. What is the importance of having an effective communication cafeteria plan?
4. Create a memo to the SVP of Human Resources outlining all of your recommendations for the Bryan Construction Company Cafeteria plan. Your memo should list your recommendations and the reasons you believe your conclusions are in the best interests of the company.