What Do MERP's and Georgia Health Insurance Have in Common?

What is a MERP and what does it have to do with Georgia health insurance?

A long time client called the other day with the same question. He has a high deductible health plan with an HSA, but needed a way to extend his tax breaks beyond the limit of the HSA. A family member needed to have inpatient psychiatric care and the $5,000 monthly bill would stretch the limit of his HSA.

Someone had suggested a MERP so he called me for advice.

Frankly, MERP’s are something I have not used, or even thought about, for some time. The Medical Expense Reimbursement Plan (MERP) is allowed under Section 105 of the Internal Revenue Code. We helped clients set up quite a few MERP’s long before HSA’s and HRA’s came along.

So what is a MERP and how does it work with health insurance?

The MERP is a specialized bank account that is established by an employer for the purpose of reimbursing employees (and their dependents) for certain eligible medical expenses. We found several sites that provide information on MERP’s including the one here. We also located a sample MERP document as well as a MERP explanatory PDF.

If you are looking for Georgia health insurance rates and information on MERP’s you have found the right place.

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