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We've updated one of our most popular materials. See what's new in our guide to MERPs.

A Guide to Section 105 Plans

Section 105 Plans Implementation Strategies

This section outlines how to implement a Section 105 Medical Reimbursement Plan.

How to Implement a Section 105 Medical Reimbursement Plan

There are three simple steps to implement a Section 105 Plan.

1. Complete Plan Setup & Generate Plan Documents

  • Complete plan setup with your Section 105 software administrator.

  • Download and distribute required Plan Documents.

2. Enroll EmployeesSection_105_medical_reimbursement_implementation_strategy

  • Enroll employees online.

  • Send Welcome Kits to employees (electronically or printed packets).

3. Employees Submit Reimbursement Requests

  • Employees incur qualified healthcare expenses and submit proper documentation for reimbursement.

How to Administer a Section 105 Medical Reimbursement Plan

To administer a Section 105 Plan you need to:

  • Have legal, written Section 105 Plan Documents, and

  • Have safeguards in place to stay compliant with the IRS, ERISA, HIPAA, and the ACA.

Businesses have three main options for plan administration:

  1. A traditional third party administrator ("TPA")

  2. An Administration Software provider

  3. Self-administration

Because of compliance reasons, and for ease of use and time savings, most businesses use a third party to administer the plan.

In the next section, we’ll discuss Section 105 Administration Software in more detail.

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