Basics of reimbursement plans

[thepensionmaven]

I do not know terribly much about medical reimbursement plans, but have a client that wants to know a bit more. They want to set up a medical reimbursement program and wish to know how it works.

I assume employee contributions, like 401(K) are withheld from pay. Where do these contributions go? When a physician asks for payment up front, how does the participant get reimbursed.

Where can I get the "basics".

Thanks.

[SLuskin]

Does your client mean a straight medical expense reimbursement plan (employer pays) or a Section 125 Flexible Benefits Plan (can be employer contributions, employee contributions through payroll deductions, or a combination of the 2)

[GBurns]

The basics of medical expense reimbursement plans is found in Treas. Regs 1.105-11.

[thepensionmaven]

I believe the client is speaking of a 125 flexible benefits plan.

I have looked at the Flexible Benefits Answer book. Anything better out there??

[GBurns]

If the client is thinking of a Cafeteria Plan with an FSA to cover out of pocket expenses etc and/or dependent care, I would contact a local competent TPA and let them provide the education.