Q&A: What's a cafeteria health plan?

Adopting a cafeteria plan will allow you and your employees to not only pay health insurance premiums on a pre-tax basis, but also unreimbursed medical expenses, dental expenses, eye care, and pharmaceuticals.

Q: A couple employees asked about adopting a "cafeteria" health plan so that the portion of our insurance premium that they pay can be handled on a pre-tax basis. What's that?