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Health Insurance FAQs
Health Insurance FAQs

questions and answers about health insurance and employee benefits

MERPs

Medical Expense Reimbursement Plans (MERPs) are a type of Health Reimbursement Arrangement (HRA) that allow employers to self-fund a portion of employees’ out-of-pocket medical costs—often to offset high deductibles. These FAQs explain how MERPs work, when to use them, and how they can be paired with traditional or high-deductible group health plans.

What’s the difference between an HRA and a MERP?

HealthInsuranceFAQs, March 27, 2025March 28, 2025

A MERP is a type of HRA used to reimburse part of a deductible. It’s a cost-sharing strategy that helps employers lower premiums while softening the blow for employees.

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Tax-Advantaged Accounts

  • POPs – Premium Only Plans
  • FSAs – Flexible Spending Accounts
  • DCAs – Dependent Care Accounts
  • HSAs – Health Savings Accounts
  • HRAs – Health Reimbursement Arrangements
  • MERPs – Medical Expense Reimbursement Plans
  • MPRAs – Medicare Premium Reimbursement Arrangements
  • ICHRAs – Individual Coverage HRAs
  • QSEHRAs – Qualified Small Employer HRAs

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