Frequently Asked Questions2021-08-30T16:14:43+00:00
What does MERP cover?2021-10-20T15:53:30+00:00

MERP enables employees to buy individual health insurance policies or buy healthcare services/products, for which they are reimbursed by their employer (up to a pre-decided amount for pre-qualified services/products). Employers can pay for a portion of or for the entire cost of their employees’ health plan deductibles, co-pays, and coinsurance, as well as other qualified medical expenses on a tax-free basis.  

What is the difference between an HRA and a MERP?2021-10-20T15:53:07+00:00

An HRA or Health Reimbursement Account is an arrangement between the employer and employee, where the former reimburses the latter for specific medical expenses, on completion of a filing process. A well-planned Health Reimbursement Arrangement (HRA) facilitated by your employer can definitely help reduce the cost of overall healthcare spending. It only covers the cost of deductibles and coinsurance.

An MERP, on the other hand, is more flexible. Employers and employees can create multiple member plan designs with multiple benefits, with the employee being directly reimbursed, tax-free, for all expenses (up to a pre-decided amount for pre-qualified services/products). While the benefits for the employees are diverse, the employer also benefits from a lower cost of group health insurance. Employers can also buy one single MERP plan and create multiple funding arrangements and benefits designs. They can also assign different levels of contribution for each employee.

Can employees contribute to a MERP?2021-10-20T15:52:39+00:00

Employees can also contribute to the MERP to gain even more flexibility. Premium equivalent rates are usually considered to decide on the minimum and maximum limits of the employee contributions.

How does a Section 105 plan work?2021-10-20T15:52:07+00:00

A Section 105 plan is an IRS-regulated health benefit.  It allows for the tax-free reimbursement of medical and insurance expenses, as described under Section 105 of the Internal Revenue Code (IRC). These plans can be designed to benefit the employees and employers in multiple ways. It can be used to pay for qualified health expenses, cover the cost of insurance premiums (up to a qualified amount), and it can be offered alongside a group health plan to reduce the cost on the employer. It also offers tax-free benefits to the employer. Employers can also opt for different types of plans based on a consultation with the employee and the benefits that the plan gives.

What is the difference between an HRA and a MERP?2021-10-20T15:50:12+00:00

An HRA or Health Reimbursement Account is an arrangement between the employer and employee, where the former reimburses the latter for specific medical expenses, on completion of a filing process. A well-planned Health Reimbursement Arrangement (HRA) facilitated by your employer can definitely help reduce the cost of overall healthcare spending. It only covers the cost of deductibles and coinsurance.

An MERP, on the other hand, is more flexible. Employers and employees can create multiple member plan designs with multiple benefits, with the employee being directly reimbursed, tax-free, for all expenses (up to a pre-decided amount for pre-qualified services/products). While the benefits for the employees are diverse, the employer also benefits from a lower cost of group health insurance. Employers can also buy one single MERP plan and create multiple funding arrangements and benefits designs. They can also assign different levels of contribution for each employee.

What does MERP cover?2021-10-20T15:48:22+00:00

MERP enables employees to buy individual health insurance policies or buy healthcare services/products, for which they are reimbursed by their employer (up to a pre-decided amount for pre-qualified services/products). Employers can pay for a portion of or for the entire cost of their employees’ health plan deductibles, co-pays, and coinsurance, as well as other qualified medical expenses on a tax-free basis.  

What is the best way to contact DEBS?2020-02-14T18:07:45+00:00

Via phone (210) 558-3377 and email [email protected]

Do I need a Tax ID to implement a group plan?2020-02-14T18:07:20+00:00

Yes, a Tax ID is required to implement a group plan.

What carriers does DEBS work with?2020-02-14T18:06:54+00:00

Aetna, BlueCross BlueShield, Cigna, Guardian, Humana, Kemper, MetLife, Reliance Standard, United Healthcare, Unum

What other coverage does DEBS offer other than medical?2020-02-14T18:06:36+00:00

DEBS offers Medical, Dental, Vision, Basic Life, Voluntary Buy Up Life, Dependent Life, Short Term Disability (STD), Long Term Disability (LTD), Medicare

How much does it cost to implement a MERP?2020-02-14T18:06:13+00:00

There is a $1,500 start up fee

How much does it cost to implement the cafeteria plan?2020-02-14T18:05:40+00:00

There is a $500 start up fee

How do I start the process of getting a health plan for my group?2020-02-14T18:04:49+00:00
  • Fill out the online census and send it to Karen Geri – [email protected]
  • For currently insured, please submit the most recent bill and any plan summaries you have.
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