The overall benefits of a Medical Expense Reimbursement Plan are as follows:
- Provides flexibility & allows for risk cap
- Allows members to cost share with the employer
- Gives employer control over plan designs
- Provides detailed reporting that an HRA cannot
While a MERP allows the freedom to move carriers and alter plan designs, a carrier-integrated HRA is hard to move or alter.
While a MERP provides detailed data reporting on a daily, weekly, or monthly basis, there is very limited reporting with an HRA. There is no breakdown of specific claim details.
Lastly, a Medical Expense Reimbursement Plan tracks success by savings, while it is very hard to equate the value of an HRA plan.