This program utilizes tax codes that have been in existence for decades, allowing for pre-tax deduction into a medical reimbursement account that will reimburse employees up to 75% of out-of-pocket eligible medical expenses covered under an employer defined group major medical plan. No change to existing group plan, broker or agent is required. Potential savings in health care premiums and payroll taxes for the employer also exist.
Who Qualifies for the Health Care Reform
This is an employer defined benefit plan. The employer must offer a group health plan, but even if the employee is not covered under the employers group plan but covered under an ERISA compliant group plan they may be eligible to participate. Department of Labor rules for participation rates are followed to make sure that all eligible employees’ are offered the opportunity to participate.
Information Needed for Health Care Reform
- Copy of plan documents to verify group plan qualifications are met
- Check stubs showing all income and all deductions, both pre-tax and post- tax
- A payroll journal for all eligible employees
- A payroll register for all eligible employees
- W4 report showing filing status and exemptions claimed