IRS Section 105 plan
One tool available to the public entities and non profits we work with is called a MRA (Medical Reimbursement Account).
These are IRS-approved plans wherein an employer reimburses an employee, their spouses, and dependents for medical expenses.
How could you use a MRA to be cost effective to your business?
A Section 105 plan pairs nicely with a high deductible self -insured medical plan.
How is there a savings realized by the employer if they are funding the MRA?
Here’s the beauty of the plan- just as with the self-funded medical plan discussed previously, unused funds in the MRA are returned to the employer! (in this case it is 75% of the balance in the MRA at year end.)
Just a few strategic adjustments like this can save thousands annually.