What type of plan is structured to permit the funding of premiums with pretax payroll deductions?

The option that pertains to funding premiums with pretax payroll deductions is a section 125 cafeteria plan. This type of plan allows employees to choose from a variety of pre-tax benefits, including health insurance and other benefits, which effectively reduces their taxable income. By using pretax dollars to pay for their benefits, employees can save on their overall tax liability, making healthcare more affordable.

Cafeteria plans provide flexibility for employees to tailor their benefits according to their individual needs, but one of the primary advantages is the tax benefit derived from using pretax deductions. This setup enhances employee satisfaction and workplace morale, as it allows for a personalized benefits package that can accommodate different family needs or financial situations.

While tiered networks, creditable coverage, and formulary plans relate to health insurance and prescription drug coverage, they do not specifically address the structure that allows for pretax payroll deductions. Thus, the section 125 cafeteria plan is the most relevant option for the question regarding the funding of premiums.