ArmadaCare’s Executive Health is a fully insured supplemental policy that reimburses members for health care expenses beyond what is covered by a company’s underlying health plan(s). This may include (but is not limited to): Out-of-pocket expenses created by exclusions, limitations, reductions and cutbacks in primary health plans R&C allowances as well as dental and vision.
Underwritten in NY by Transamerica (A+ by AM) it is currently available in 44 states (excluding CT, NH, VT, KS, WA, MT)
Although ArmadaCare’s Executive Health policy has been available for many years, the applications of it in the market place have continued to expand.
More and more it is being used in the following situations:
- For Executives who are faced with significant cutbacks in reasonable and customary allowances (percentage of Medicare and balance billing).
- For Executives who are making tough decisions about the group health plan for their employees and are finding more out-of-pocket expenses for themselves.
- For partners/shareholders who may not be eligible to participate in flex plans or HRA’s.
- For 501(c) three organizations who are looking for alternative ways to compensate employees.
- Employee Retention: especially for the following industries: Finance, Advertising, Law, Public Relations, Media & Fashion.
- Foreign Based Companies who need to provide comprehensive coverage for employees as well as reimbursement for executive physicals.
What is a Medical Expense Reimbursement Plan (MERP)?
Section 105 of the Internal Revenue Code provides a way to save taxes, for both employer and employee, through a Medical Expense Reimbursement Plan (MERP). Such a Plan should not be confused with a Flexible Benefits or Cafeteria Plan because they are two different programs. Section 105, a little known part of the tax code, allows a 100 percent deduction for health insurance and allows companies to write off other non-insured medical, dental and vision expenses as well. Employers and employees can save Federal Taxes, State Taxes, FICA, Medicare, Workers Compensation, Unemployment and State Disability Insurance payroll taxes – up to a 50% savings for some. While any company can take advantage of the plan, smaller companies, particularly self-employed individuals that can employ their spouse in their business, can benefit greatly. Howell works with employers to design and implement MERPs after assessing their needs.
For any additional details, be sure to contact us at (914) 207-6161.