Employees

How to Maximize Your Health Benefits with Medical Reimbursement Plans

Tyler Jones
Oct 23, 2023
Resource

Every morning, as you manage your family's schedules, navigate health needs, and juggle those unexpected doctor's appointments, you carry an unspoken title with pride and dedication: the Chief Medical Officer (CMO) of your home.

While it's not an official role stamped on a business card, and perhaps the last anatomy class you took was in high school, it’s a position you embrace wholeheartedly. Yet, amidst the love and concern, there's an underlying stress – managing health expenses not covered by your insurance. This is where medical reimbursement plans can make a significant difference.

Perhaps you've heard of medical reimbursement plans (MERPs for short) before, and today, the opportunities to leverage them to offset high healthcare costs are apparent: Between 2022 and 2023, healthcare costs are predicted to grow by 5.61

To put that into perspective, individual annual healthcare costs rose from $6,472 in 2021 to $7,221 in 2023. For a family of four, the costs increased from $28,310 in 2021 to $31,065 in 2023.

While introduction of healthcare legislation Obamacare Act led to a 12.0% decrease in out-of-pocket health spending two years after it went to market, challenges persist. Prices for doctor consultations, treatments, and prescription drugs are continually on the upswing, adding to the financial strain and burden the household CMO has to manage. 

Let's dive into how a medical reimbursement plan can be a game-changer for your family's healthcare.

Medical Reimbursement Healthcare Plan ICHRA - A mom and her son

Understanding Medical Reimbursement Plans (MERPs)

A Medical Reimbursement Plan, commonly referred to as MERP, offers a way for employers to reimburse their employees for their medical expenses tax-free. This doesn't replace health insurance, instead, complements it. Think of it like a financial buffer - providing flexibility for expenses not typically covered. 

Here are a few scenarios of how MERPs can be used in real life:

  • The unexpected medical procedure: Your daughter, Lily, returns home from school one day with a recommendation from the school dentist – she needs braces, and soon. The estimated cost? A staggering $5,000. While your insurance covers some orthodontic procedures, it doesn't come close to covering this expense in its entirety. With a MERP in place, you could submit the bill for the balance, and get reimbursed. You may even be able to afford more expensive brands like Invisalign following ‘strong protests’ from Lily they're less embarrassing than metal braces.  
  • Seeking a second opinion: After experiencing chronic back pain from a snowboard fall you took on your family’s annual winter vacation, you decide to consult a specialist renowned in the field. But there's a catch: she’s out-of-network. The visit incurs a cost that isn't fully covered by your insurance. In situations like this, a MERP can step in, reimbursing you for that invaluable second opinion which might hold the key to your relief.
  • Alternative treatments: Your spouse has been researching alternative treatments for migraines and finds a holistic therapy that has shown promising results. Traditional insurance often doesn’t cover alternative treatments, but with a MERP, you can get reimbursed for these treatments, giving your loved ones the best chance at health without the accompanying financial stress.

Empowering the Household's CMO: The Rise of ICHRAs and Why They Matter

Every household's CMO is faced with the challenge of ensuring their family gets the best healthcare while navigating the complexities of medical expenses. The introduction of the Individual Coverage Health Reimbursement Arrangement (ICHRA), a type of MERP that is growing in popularity with employers and their employees, might just be the game-changer you've been looking for.

Gone are the days of traditional health arrangements that felt like trying to squeeze your family’s diverse needs into a one-size-fits-all box. ICHRAs are tailor-made with the nuances and specific requirements of families in mind. 

Here's why they shine:

  • No annual limit worries: Whether it's an unexpected dental procedure for your child or a therapeutic yoga session you've contemplated, ICHRAs ensure you aren't constrained by reimbursement caps, provided it aligns with the plan's stipulations.
  • Unparalleled flexibility: Need physical therapy or considering a homeopathic treatment? With ICHRA, you're in control, choosing healthcare coverage that mirrors your family's distinct health and budgetary concerns.
  • Tailored to unique needs: Considered a therapeutic yoga retreat for mental rejuvenation? ICHRAs can even cover treatments that fall outside the traditional spectrum, offering care that truly resonates with individual preferences.
  • Buffer against soaring medical bills: For families with members requiring specialized care or procedures, ICHRAs can act as a financial safety cushion, ensuring that high costs don't come in the way of quality healthcare.
  • Simplified and smart reimbursements: After settling your healthcare bills, it's as simple as filing a claim for reimbursement. With platforms like Venteur, this process is even more seamless. And here’s the cherry on top: every reimbursement is tax-free.
  • Empowerment in your hands: Being the family's CMO isn't just about overseeing general healthcare. It’s about making informed choices and ensuring your loved ones get the very best. With ICHRAs, you have the power to decide where and how your healthcare dollars are spent, guaranteeing optimal care while enjoying intelligent financial perks.

Maximizing the Potential of MERPs with Venteur

Navigating the labyrinth of healthcare decisions becomes a tad bit easier with medical reimbursement plans in your arsenal. Especially when unexpected needs arise, having the flexibility and empowerment that MERPs and ICHRAs offer can make all the difference. 

As the CMO of your household, it's worth exploring these tools to ensure holistic, comprehensive, and financial-savvy care for your loved ones.

Platforms like Venteur’s are ensuring that families can easily manage their MERPs providing insights, offering suggestions, and helping optimize the way you utilize your medical reimbursement plans.

Want to learn more? Read about the Venteur platform here.

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