Medical Reimbursement Plan
Section 105 of the IRS Code may be one of the best kept secrets for managing your company’s healthcare costs. The Medical Expense Reimbursement Plan (MERP) provides sole proprietors, partnerships, corporations and limited liability companies (LLCs) a full tax deduction for employee medical benefits. This includes premiums paid to fund employee and dependent health insurance and other non-insured medical expenses, such as dental and vision care.
MERP allows an employer to reimburse an employee for uninsured health of accident expenses incurred by the employee and their dependents. The primary objective of the plan is for the employer to reduce health plan costs. This plan can be used in conjunction with a health insurance plan and can be set up with a specific plan design that will align with your overall benefit strategy.
MERP important information:
- MERPs are tax deductible by the employer under Section 105 of the Tax Code
- Flexibility in design of the plan’s provisions
- Reimbursement payments are not considered income to the employee
- Can roll over unused funds for use at a later time for medical expenses, COBRA benefits, long term card and Medicare premiums
Hear It For Yourself
“It's so much easier to use our Flex Spending since FBA started to work with us. We love the turnaround time for claims, the card is so easy to use and not having to validate every single card swipe has been AWESOME!”L. McKenzie
“It's so much easier to use our Flex Spending since FBA started to work with us. We love the turnaround time for claims, the card is so easy to use and not having to validate every single card swipe has been AWESOME!”J. Bollen
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