fbpx

Frequently Asked Questions - General Questions

Please select your question category

Search FAQs

Interested in BeniComp Select Executive Medical Reimbursement but have questions about the application process?

FAQs - General Questions
What is a Medical Reimbursement Plan?

A Medical Reimbursement Plan is a fully insured reimbursement plan that allows an employer to reimburse key employees for most medical, vision, hearing and dental expenses not otherwise covered by their existing benefit plan.

How Does BeniComp Select work?

BeniComp Select allows employers to reimburse their key employees for most medical expenses not otherwise covered by their base health insurance plan. Rather than reward all employees at a company, the employer is able to reward individual employees or groups of employees by class. For example, an employer could create three classes:

  • $100,000 policy for the president
  • $50,000 policies for the vice presidents
  • $10,000 policies for the directors

These "classes" are created by the employer.

An employer pays a $250 annual premium for each of the executive participants. When a participant has eligible reimbursable expenses, they are submitted to BeniComp Select for reimbursement. The approved claim + 11% is paid by the employer, and BeniComp Select reimburses the key executive directly if they have signed up for direct deposit. 

Is the underlying plan required to be employer based?

No. The underlying plan can be an employer group plan, individual policy, spousal policy or Medicare.

What is the Flexible Benefit Schedule?

The employer selects the desired benefit level for each of the classes designated to the participating employees from the plan maximum schedule.

Plan Maximums: $10,000, $15,000, $20,000, $25,000, $35,000, $50,000, $75,000, $100,000, $200,000

Accidental Death Benefit: Included with each BeniComp Select policy equal to the plan maximum up to $100,000

Who is covered under this policy?

The policy covers the participant and any qualified dependents, and is based on specific state mandates.

Some plans have an expanded definition for dependents between ages 19-26. How does a BeniComp Select policy manage these dependents?

BeniComp Select follows the primary plan. If the primary plan allows for dependents up to the age of 26, then so does the BeniComp Select policy.   

Why should I choose BeniComp Select instead of an FSA or HRA?

 

 Flex/125105HRABeniComp Select
Participation* Everyone Everyone Everyone Class defined by Employer
2% Shareholders* Ineligible Ineligible Ineligible Eligible
Pre Funding Yes Yes Yes No
Use it/Lose it Yes No No No
Admin Premium Monthly Monthly Monthly $250 + 11% of Claims

 

*The following individuals are ineligible to participate in a Cafeteria Plan, including a Premium Only Plan (POP) or any of its qualified benefits, which include FSAs and HRAs:

  • More than 2% shareholder of an S-Corp (or any family member)
  • Sole Proprietor
  • Partner in a partnership
Do I have to purchase this policy for all employees?

No, this policy can be placed on as few or as many employees, based on class, as the company chooses. Further, the company has the option of choosing different benefit levels on different classes of employees. Classes are determined by the company. If a policy is being offered to a class, everyone eligible for the designated class must be offered the plan. 

Is there an age limit or waiting period?

A BeniComp Select policy does not have an age limit or a waiting period.

Can I use an HSA (bank account) with BeniComp Select?

Concerning the use of a Health Savings Account (HSA) on a high deductible primary health plan (HDHP) that also has BeniComp Select supplementing the HDHP, it is our belief that you should seek the advice of your HSA advisor or tax adviser on the tax implications to also use an HSA when BeniComp Select supplements the primary plan. BeniComp’s underwriting only considers the primary plan to determine the eligibility for BeniComp Select to be an eligible supplement to the base medical plan. BeniComp makes no representations about other ancillary products or services not under our control.