What is a Medical Expense Reimbursement Plan (MERP)?

One of the first differences members notice with the ClaimLinx solution is that they now have two cards to show at the doctor instead of one. This is because ClaimLinx uses a medical expense reimbursement plan (MERP).

Related Post: ClaimLinx Glossary: Common Health Insurance Terms

MERP is the key to the ClaimLinx Solution for providing more cost-effective health insurance.

The medical expense reimbursement plan, a Section 105 plan of the tax code, is any arrangement under which a business reimburses an employee for out-of-pocket medical expenses. And all of these reimbursements are paid to the employee 100% tax free.

ClaimLinx uses the MERP to lower insurance costs but still cover employees’ qualified medical expenses.

Related Post: Why did my employer purchase a MERP?

Normally if a business reduces medical insurance coverage to lower premiums without adding a MERP, the expense shifts from employer to employee. The MERP allows for employees to receive the same coverage while employers save money.

If you have questions about your plan, email or call 513.677.6262.

Defined Contribution Health Plans

Tom Quigley, National Business Consultant, provides consulting services, and is in charge of recruitment and new business for ClaimLinx.

Today he’s discussing Defined Contribution Health Plans and how they can be utilized to save a company and its employees thousands in tax dollars.

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

There is no reason to buy a traditional group health insurance plan as of January 1, 2014.  If you would like to attract & retain good employees by offering health benefits without the high cost & requirements of Group Health Plans, then Defined Contribution Health Plans are a good solution. Employees choose their own health plans with the carrier and coverage that work best for them, and pay for it with tax-free dollars. Using a private exchange online portal, it’s easy to set up.

You can now add extra revenue to your bottom line by going to our healthcare exchange to learn more; or contact Tom Quigley.

ClaimLinx is proactively ready for the many changes of Health Care Reform.  Our Health Care Exchange has its own call center to enroll individuals in the many policies that are available to them. Please visit the site for more information.

Related Post: What is the difference between primary and secondary coverage?

ClaimLinx is positioning its clients to move in the right direction.  We can structure benefits in their favor to ensure they are in full compliance with the law without cutting benefits or employees.  Feel free to contact Tom at or (800)858-1772 X 25 with your questions. Look for our new book, “How to Beat Obamacare” to be released later this year.

Obamacare May Require More Creative Savings

Controversy is swirling around the Affordable Care Act as the market exchanges open with the beginning of next month: Will it be more or less expensive? Will it work?

But one man is looking at a quirk in the system he thinks many may benefit from.

Jonathon Wu, co-founder of the price comparison site, said that for some people, it will be more economical to have an employer cease offering health insurance subsidies for them and their families. In this case, the entire family is then free to buy insurance with government subsidies on the Obamacare state health exchanges.

“For a lot of people, that may be a better deal,” Wu said.

Under the ACA, a worker whose employer offers company-subsidized health insurance that costs the worker less than or equal to 9.5 percent of household income is considered to be receiving affordable coverage.

Related Post: ClaimLinx reclaims thousands of dollars for consumers

The availability of this coverage makes employees ineligible for the state exchanges using government subsidies. However, the affordability test considers only the cost to the worker of buying insurance from the company’s plan, not the cost of insuring the entire family.

Therefore, even if the cost of purchasing coverage for a worker’s entire family exceeds 9.5 percent of the household income, the family cannot potentially save money by buying government-subsidized insurance on the state health exchange.

The potential financial hit or benefit that families may see is becoming more apparent with the approach of Oct 1, the date when all the federal and state-run Obamacare exchanges are scheduled to begin enrolling people in plans.

Related Post: Budget Deal Cuts Potential Health Law Tax Revenue

There are always many strategies to purchasing health insurance in order for employers and employees to save money. If you have any questions about how the Affordable Care Act could help or hurt your plan purchasing, please contact Tom Quigley at Look for his book How to Beat Obamacare to be released soon.  Also, please view our Health Care Reform guide here.

You may also be interested in reading some of the options Jonathon Wu explains in the article by Dan Mangan this information was taken from.