MERP ClaimLinx

ClaimLinx Glossary: Medical Expense Reimbursement Plan (MERP)

A medical expense reimbursement plan (MERP) is part of the ClaimLinx Solution. A MERP allows business owners to make a tax-deductible contribution to employees’ medical expenses. Our employer benefits consultants combine a high-deductible health insurance plan from a national carrier with a MERP. This arrangement gives both workers and owners an optimal choice for health insurance benefits. Today’s ClaimLinx blog defines and explains how a MERP works with regards to health benefits.  

Short Definition of a MERP

A MERP lets business owners deduct any portion of medical expenses paid by the company or employees for their medical care. The idea is to reduce the out-of-pocket expenses that employees pay for medical care before health insurance starts to cover the costs. Contributions to these costs lower the amount of money the IRS calculates for a business’s income taxes. ClaimLinx helps you find the optimal funding levels for MERPs to give you the best way to provide health insurance for workers.

Related Post: Why did my employer purchase a MERP?

Example of How a MERP Works

Suppose ClaimLinx has determined a plan with a $3,500 deductible works best for your company. That means the employee would normally pay $3,500 before the health insurance coverage starts paying for his or her medical care. A MERP can help lower someone’s up-front costs for medical care. ClaimLinx designs a custom schedule of benefits for you and your employees based on medical needs and company budget. In this case, the employee would actually have a much lower deductible and may even experience copays for regular visits and procedures. Business owners receive the tax deduction only when an employee has a qualified medical expense when they pay part or all of the medical expenses.  

Why Employers Need a MERP

All the time, employers tell ClaimLinx they would not be able to have viable health insurance benefits without a MERP. Small businesses often have slimmer margins and can’t afford good benefits when premium costs go up. MERPs allow employers to keep offering great benefits on a smaller budget. When you take the administration of first-dollar benefits like copays for office and specialist visits away from the insurance company, you don’t have to pay as much for those benefits. The flexibility of MERPs let companies fund their employees’ medical expenses based on the budget and needs. And as a bonus, MERP funds transfer from year to year. So a company can build up funds over time. 

Related Post: HSA vs. HRA vs. MERP

The benefit to the company is also that MERPs lower the income that goes towards a tax liability. For example, a business owner has $500,000 in income in one year. The owner has $10,000 of qualified expenses he reimbursed for employees through the funding program. The owner does not pay income taxes on the $10,000 he contributed to that fund. At a 23.6 percent tax rate, the business owner pays $2,360 less in taxes for that $10,000.

ClaimLinx Navigates MERPs for You

The employee benefits consultants at ClaimLinx help business owners select the correct funding levels for MERPs, so employees save money on health insurance costs. Not only do owners lower their costs, but they also help retain employees with lower-cost employer-paid benefits. Contact ClaimLinx or call toll-free 1-800-858-1772 for more details on our ClaimLinx Solution.

ClaimLinx Health Insurance Strategy

ClaimLinx Offers a Full-Service Insurance Strategy

ClaimLinx offers more than just a way to provide health insurance to your employees. We offer a holistic solution to give great benefits to employees while saving money for business owners. Our ClaimLinx Solution blends a high-deductible insurance plan with a company-funded medical expense reimbursement plan (MERP). The result is an optimized health insurance plan for everyone at your business. ClaimLinx explains how we make this full-service insurance strategy work in today’s blog.

High-Deductible Health Plan

A high-deductible health plan allows for lower monthly premiums. Lower premiums mean you pay less money to have the health insurance plan in place. Normally, higher deductibles mean employees must pay more money before insurance coverage begins to pay for medical expenses. But ClaimLinx has a different strategy.

In 2019, the IRS defined a high-deductible plan as one with at least $1,350 for an individual or $2,700 for a family. These minimums mean individuals must pay the first $1,350 of medical expenses before the health insurance plan starts to cover certain costs. But ClaimLinx typically chooses plans with deductibles much even higher to really slash expenses on premiums. This is a part of our full-service insurance strategy.

Related Post: What is an employer-sponsored, or self-funded, plan?

MERP

Employers can use a MERP to help fund an employee’s costs before reaching his or her deductible. When paired with a high-deductible plan, MERPs offer a health insurance strategy that is cost-effective for employees and employers. 

For example, John Smith goes to the emergency room for a minor injury and receives a bill for $2,500. His insurance carrier sends him an Explanation of Benefits (EOB) that says he owes the full amount because he has not yet met his high deductible of $3,500. John’s employer, Acme Brick, has a MERP that covers emergency room visits with a $350 copay. That means John only pays $350 instead of $2,500. 

The ClaimLinx Solution is a win for everyone. John Smith experiences lower costs for medical expenses. Also, John’s employer is happy because he can afford to offer such great benefits since the cost of the company’s monthly premiums has gone down so much. Our full-service insurance strategy identifies the optimal combination of high deductible plan and MERP.

Related Post: What Is a MERP?

How This Strategy Saves Money

A high-deductible health plan lowers the monthly premiums for each employer. Instead of paying $1,000 per month for a family’s coverage, an employer might pay $700. A MERP continues the savings because it’s a tax deduction. Every time an employer reimburses an employee’s medical expenses, it lowers the amount of money the IRS figures into business taxes. Business owners not only pay lower income taxes, but they also lower onboarding costs by retaining employees for longer periods of time. Employees who remain healthier are more productive and miss less work. ClaimLinx shows you how we deliver for both business owners and employees with our full-service insurance strategy.

The ClaimLinx Solution: A Full-Service Insurance Strategy

ClaimLinx is here to find the best possible solution for health insurance at your business. We educate business owners and employees on the best practices for combining health insurance plans with a MERP. Our team provides third-party administration, employer benefits consulting, and complimentary elite services to our clients. Contact ClaimLinx or call toll-free 1-800-858-1772 for more details about our full-service insurance strategy.

ClaimLinx Health Insurance Rates

Why Insurance Rates Are So High and How to Start Cutting Them

ClaimLinx understands that health insurance rates are high, and they keep going up every year. Our experienced benefits consultants work with business owners to keep insurance costs low for you and your employees. In today’s blog, ClaimLinx explains why insurance rates are so high and how to start cutting them.

Why Health Insurance Rates Are So High

Health insurance rates are high for several reasons. Investopedia states that administrative costs are the number one reason why health insurance costs skyrocket. Healthcare companies need billing clerks to determine what is or is not covered by health insurance. Around one-fourth of healthcare costs are due to administrative costs. Considering overall healthcare costs were a whopping $3.65 trillion in 2018, administrative costs were around $912.5 billion. 

Related Post: ClaimLinx saves small businesses $4.5M on health care in 2018 

Defensive medicine is another reason for high health insurance rates. Doctors err on the side of caution when it comes to trying to diagnose patients. Someone might get an MRI, bloodwork, and a biopsy just for one visit to the doctor’s office. When more people get more tests, health insurance costs increase. Defensive medicine adds nearly $50 billion to the costs of healthcare in the United States. 

How to Cut Health Insurance Rates at Your Company

Health care and insurance costs are increasing at an unprecedented rate, and that’s why you need a creative solution. ClaimLinx devised a method for savings that works. It’s called the Simple Option Solution. It combines a high deductible health plan with a self-funded plan, and it saves small businesses 20 to 40 percent on their health plan. There’s no reason to keep giving your company’s hard-earned money away to the insurance company. You can take back control with a new method of buying employee benefits that is less expensive and more flexible.   

Related Post: We are the full service insurance benefit solution

Be Flexible

Flexibility is a way to save money on health insurance rates. While group health insurance might work well for some small businesses, individual benefits consulting and shopping for plans in a marketplace might make more sense for others. Implementing the ClaimLinx Solution is about looking at all aspects of the plan, from the plan with a carrier to the prescription coverage, from the copays for office visits to the overall plan deductible. ClaimLinx can help you find the right options for the best possible costs.

Educate Your Employees

Educate your employees on how to seek healthcare options and take better care of their health. Consider anti-smoking or anti-tobacco campaigns if your company has smokers on staff. Where employees seek medical care can also affect their health insurance rates. ClaimLinx can explain how someone’s choices to seek medical care can make health insurance rates go up. We go over urgent care versus an emergency room visit, out-of-network versus in-network care, pre-tax payroll deductions, and wellness initiatives for workers. 

Hire ClaimLinx to Lower Health Insurance Rates

ClaimLinx offers the ClaimLinx Solution to help lower your health insurance rates. Our experienced health benefits consultants can find you the best possible rates on employer-paid benefits while also educating your workers on how to save money on healthcare costs. Contact ClaimLinx or call toll-free 1-800-858-1772 to see what we can do.

How Employer-Paid Benefits Affect Your Bottom Line

ClaimLinx helps business owners save money on employer-paid benefits for health insurance provided for workers. Our ClaimLinx Solution develops a holistic strategy designed to save companies the most money possible while giving employees quality health insurance. In today’s blog, ClaimLinx explains how employer-paid benefits affect your bottom line as a business owner.

Bottom Line Savings

Employee benefits are one of the top five expenses of any business. Saving money on employer-paid benefits can open up huge opportunities for your firm for hiring new workers, purchasing new equipment, increasing wages, or investing in tools to help your employees work more effectively. By cutting costs on this big ticket item, there is a huge opportunity to reinvest in your employees and your business. You may even have the opportunity to improve benefits by adding a supplemental insurance benefit.

Related Post: Start a path to savings on insurance

Retaining Employees

Employee retention is a huge deal, especially in a robust economy with plenty of high-paying jobs. Having employer-paid benefits is a way to retain employees for the long-term. Long-tenured employees have more expertise and can be cross-trained to help more of the business. As they improve their efficiency and expertise, retained employees may accomplish more work over time compared to a new hire. The cost of hiring a replacement for a highly trained employee may exceed a whopping 200 percent of their annual salary. That’s not a small thing when you think about an annual salary versus providing a health insurance benefit.

Cost Analysis

Nationally, the average cost to onboard a new employee is $4,129, according to the Society for Human Resource Management. Consider the average cost of onboarding a new employee. You have the staff hours needed to post a job description, narrow the search, interview candidates, train a new person, and then get the new hire up to speed. The right benefits plan can help you avoid all this. Perform a cost analysis of onboarding versus employer-paid benefits. You may realize that keeping people at your firm with great benefits saves you money on recruitment and retention, even if you’re a small business.

Employee Wellness

Employer-paid benefits, including health insurance, improve overall employee wellness. Improved wellness leads to workers who stay on the job, work more productively, and have fewer sick days. One national survey states 66 percent of companies see a return on investment from their health initiatives, with 35 percent of firms seeing improved productivity and morale. Health insurance for workers helps them to stay engaged and happier at their jobs, which is a huge factor when it comes to employee retention and well-being.

Related Post: Have a happy healthy summer with these tips

ClaimLinx Saves You Money

ClaimLinx, with the ClaimLinx Simple Option Solution, looks at your business holistically. Our experienced benefits consultants take into account your costs, the number of employees, and your current situation. We find the best health insurance fit for you, the business owner, and your employees. Contact ClaimLinx or call toll-free 1-800-858-1772 to see how we can save your company 20 to 40 percent on employer-paid benefits.

Health Insurance Employer Benefits Consulting

ClaimLinx Offers More Than Just Employer Benefits Consulting

The most important part of the ClaimLinx Solution revolves around employer benefits consulting. This means our experts advise you, the business owner, about the benefits to offer your employees. We are a full-service insurance agency specializing in health insurance. ClaimLinx discusses what we offer beyond employer benefits consulting for your company.

What Is Employer Benefits Consulting?

Employer benefits consulting is all about finding the best solution for each client. You hire us to advise you on the best possible health insurance plan for your employees. Our flagship product is the ClaimLinx Simple Option Solution, which combines a high deductible health plan with a self-funded plan. The self-funded plan is administered completely in-house with ClaimLinx as the third-party administrator. Buying your company’s health plan this way means two things. You get huge savings and you get to customize your benefits to fit your employees’ needs. We help you understand the strengths and weaknesses of each benefit, so you can make the best choice for your people and your business.  

ClaimLinx’s Holistic Strategy to Save You Money  

ClaimLinx can save your small business 20 to 40 percent on employer-paid benefits for your workers. But it’s not just about setting up a plan when it comes to health insurance. It’s also about being there to help you and your employees become better health care consumers. With each new client, our first priority is education. We teach employees about getting their claims processed and how they can do more to save money on care. We also take a look at which prescriptions employees need to find new savings opportunities using discount cards or drug programs. Employer benefits consulting means we work with company owners and employees for the ideal situation for everyone involved.

We Help Companies Shop for the Best Plan

The ClaimLinx Solution starts where every health insurance plan starts—with a plan from a major carrier. We know how important insurance networks are and we work hard to find the best plans at the lowest price. Unlike other insurance agents, we’re not looking for the biggest commission for us. We’re looking for the biggest savings for you. As an employer benefits consulting firm, we give you and your workers customized attention and health insurance plans that fit your needs. We find the best value for owners while keeping in mind how important keeping certain doctors or specialists in network is to the use of the plan. We are a full-service insurance agency, whether you need advice for choosing health insurance or you need someone to oversee your employees’ plans.

ClaimLinx Is Your Employer Benefits Consultant

Experts at ClaimLinx are not loyal to one particular insurance provider over another. We strive to give you the optimal deal and lower costs while allowing your employees to have affordable health insurance through your firm. Contact ClaimLinx or call our office at (800) 858-1772 to find out how we can save you money and offer your employees peace of mind for their healthcare needs.