What is a key feature of "Simple Cafeteria Plans" as created by ACA?

The correct answer highlights that "Simple Cafeteria Plans," as established by the Affordable Care Act (ACA), include specific eligibility and contribution requirements. These plans are intended to simplify the cafeteria plan model, making it more manageable for small employers to offer flexible benefits to their employees while maintaining compliance with legal standards.

In the context of the ACA, Simple Cafeteria Plans cater primarily to small employers and provide straightforward options for employee benefits. Specifically, these plans allow for a defined set of benefits and clear rules regarding who can participate and how contributions are made, simplifying the administrative burden for employers.

Furthermore, while non-discrimination testing and coverage options are important aspects of cafeteria plans in general, the specific focus of Simple Cafeteria Plans on eligibility and contribution requirements is what differentiates them and ensures that benefits can be provided in a compliant manner. This focus helps protect against potential discrimination in offering these benefits, making them more accessible to a small employer's workforce without the additional complexities that larger organizations might face.