How MRPs Work?
Medical Reimbursement Plans operate similarly to other tax-advantaged programs, such as
HRAs or FSAs. Their intent, however, is not to apply a consumer-driven thought process
to employee benefits, rather, they give the employer the flexibility of keeping their defined
benefit plan in place, without incurring the expense of a fully-insured, benefits-rich premium.
MRPs typically start with a high-deductible plan, which yields premium relief, and the employer
then layers in the MRP to make up the difference between the old plan and the new plan. In this way,
employees continue to enjoy the same benefits, while the employer typically pays out less for their
health insurance program.