Section 105 Medical Reimbursement Plan

What Does Section 105 Medical Reimbursement Plan Mean?

A Section 105 medical reimbursement plan is a self-funded health insurance arrangement in which employers cover their employees’ healthcare expenses directly, rather than paying for costly group health insurance plans.

Additionally, these reimbursements are often tax-free, providing further cost savings for employers.

Insuranceopedia Explains Section 105 Medical Reimbursement Plan

The Affordable Care Act (ACA) introduced several regulations for Section 105 medical reimbursement plans. For instance, these plans are required to provide unlimited coverage for essential healthcare needs. This means employers cannot impose caps on coverage for costly procedures, such as cancer treatment, ensuring comprehensive care for employees.