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MERP'S
Medical Expense Reimbursement Plan (MERP)
| | A medical expense reimbursement plan allows employers to reimburse their employees for medical expenses all without taxes! In the OptiLife 105 plan, the employer purchases a "high-deductible" group insurance plan and then covers a portion of the deductible on behalf of their employees. Once an individual's deductible is met, the primary carrier's responsibility begins and the employer's liability stops.
This lets the employer take advantage of the fact that most employees don't fully utilize their health plans. Savings are achieved from significantly lower premiums and the reduction of the employees' portion of costs.
As the employer, you can also design a benefit package specifically tailored for your employees and your budget. Coinsurance, copays and your own plan deductible can be implemented. OptiLife Administrators has a number of standard plan designs to follow. Customized plans can be designed to augment the "Economy" PPO health plans currently being offered in the market or to reimburse for vision and dental expenses.
Total health plan savings of 20%-40% are not uncommon. In addition, employee's maximum out-of-pocket costs can be as much as 60% less than an "off the shelf" plan. Your Benefits Consultant can work with you to determine your maximum and expected claims exposure and craft a plan that meets your objectives.
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