What is a medical reimbursement account?

A medical reimbursement account is a type of health insurance plan offered to individuals and businesses in Washington State. It allows the employee to save money on their taxes by setting up a separate account, funded partially or fully by their employer, which can be used to pay for out-of-pocket medical expenses. Medical reimbursement accounts are governed by the Washington State Office of the Insurance Commissioner, and each plan must meet certain standards. Generally, they must provide coverage for any medically necessary care, including preventive care and emergency services. They must also cover services related to mental health and substance use disorder, as well as vision and dental care. In order to be eligible for a medical reimbursement account, the employee must provide proof of need for their coverage. This usually includes medical bills, prescriptions, and other evidence of medical necessity. The money in the account can be used to pay for any pre-approved medical expenses. However, it cannot be used for any other purpose, such as child care, long-term care, or personal items. Additionally, any money not used within the account’s benefit period will be forfeited. Overall, medical reimbursement accounts provide an efficient and cost-effective way to pay for healthcare expenses. They are an excellent option for those looking to save money on taxes while still getting the care they need.

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What is a medical reimbursement account?

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