Medical Expense Reimbursement Plan ( MERP ). A MERP is an IRS Section 105 Plan that allows employers to reimburse their employees on a tax-free basis for medical expenses. Conceptually, an employer purchases more cost effective plan designs from their group medical insurance carrier to achieve premium savings and reimburses their employees for the medical expenses that were insured under their previous rich plan designs. Through a proprietary reinsurance policy, the employer’s reimbursements are capped at a maximum amount in order for them to achieve guaranteed savings. Establishing a MERP helps companies save an average of 18% on their healthcare costs while maintaining or enhancing their current benefit plans.
A Health Insurance Consultant You Can TrustWith 30+ years experience in employee benefits and specialized knowledge of Medical Expense Reimbursement Plans, we are uniquely positioned to help companies innovate and save money in this period of exponentially rising health insurance costs.
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