Direct Payment Under Acc./Health Plan?

[chris]

Employer has a medical expense reimbursement plan. The written document appears to be outdated in that it references the 1954 Code. One provision of the plan allows for the Corporation to directly pay the medical provider. Since it is a medical expense "reimbursement" plan, is direct payment permissible? Thanks for any help.

[chris]

Reg. §1.105-2 (last two sentences) appears to allow for a direct payment by employer to provider.