Overview of Medical Reimbursement Plans
Health insurance costs in the U.S. are rising at an exponential rate. As such, employers are adopting Medical Reimbursement Plans as a strategy to lower the cost of healthcare without reducing coverage for employees.
What are Medical Reimbursement Plans?
Medical Reimbursement Plans are IRS-approved health plans that allow for tax-free reimbursement for medical expenses.
There are a few different types of Medical Reimbursement Plans including: Health Reimbursement Arrangements (HRAs), Healthcare Reimbursement Plans (HRPs), Health Savings Accounts (HSAs), and Health Flexible Spending Accounts (FSAs).
Medical Reimbursement Plans can be used alongside a group health insurance plan. Or, the Medical Reimbursement Plan can be offered as the main health benefit plan, usually instead of a group health insurance plan. Because the reimbursements occur pre-tax, employees and employers often save up to 50% in combined taxes on the cost of medical expenses.
If you have any questions about Medical reimbursement plans or any other insurance related questions, please call us at (540) 548-3484 or visit us at http://www.abcinsured.com