A MERP is a medical expense reimbursement plan. Interestingly, MERPs lack a well-defined meaning under the Code, ERISA, and other laws, which often causes confusion. However, as the term is commonly used in the industry, a MERP is understood to be an HRA. As such, A MERP is a 100% employer-funded account that reimburses employees (and their spouses/dependents, if applicable) for incurred medical expenses on a tax-advantaged basis.
Accordingly, compliance issues posed by MERPs are considered to