Health benefits are under unprecedented pressure. U.S. employers are bracing for the largest health insurance cost increases in over 15 years, with employer coverage projected to surge approximately 9.5% in 2026 [WSJ]. For modern organizations, the numbers just don’t add up: nearly half of U.S. adults report difficulty affording healthcare, and one-third have delayed or skipped needed care in the past year due to cost [KFF]. Brokers and employers are caught in the middle, facing unsustainable premium hikes while employees encounter a “paywall” of rising out-of-pocket costs.

In this short blog, you’ll learn:

• What is a MERP?
• How Nonstop Health’s approach to the MERP is unique and what differentiates it from a normal MERP.

What Is a Medical Expense Reimbursement Plan (MERP)?

A Medical Expense Reimbursement Plan (MERP) is an IRS Section 105 plan that allows employers to reimburse employees tax-free for qualified medical expenses. It’s a powerful alternative funding strategy that supplements group health plans to fund deductibles, coinsurance, or copays, improving benefit richness without increasing premium costs.

Why Are MERPs Important?

A well-designed MERP delivers three core outcomes:

1. Reduces budget volatility for the employer.
2. Lowers financial barriers at the point of care for the employee.
3. Maintains benefit richness while securing budget stability.

As healthcare costs continue to rise, MERPs have become an attractive way for brokers and employers to design appealing benefits packages that control costs while boosting benefits.

MERP Compliance and Reporting

Because MERPs are considered group health plans, they are subject to several key regulations:

• Internal Revenue Service (IRS) rules
• Employee Retirement Income Security Act (ERISA)
• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• Affordable Care Act (ACA)
• Health Insurance Portability and Accountability Act (HIPAA)

Introducing Nonstop Health^®

Nonstop Health combines an ACA-compliant health plan with a Section 105 MERP. This unique alternative funding strategy blends the cost control of a self-insured plan with the financial predictability of a fully insured plan.

How Nonstop Health Works

A streamlined 3-layer model designed for clarity and control:

1. High-Deductible Plan: Nonstop Health pairs with fully insured, level-funded, or self-funded plans at a lower premium.
2. MERP Layer: The MERP covers employees’ eligible out-of-pocket costs directly, as they happen.
3. Admin Layer: We project claims and bill a predictable monthly rate, with a guaranteed warranty.

Key Benefits of Nonstop Health

• Typical Savings: 8–10%, with long-term premium stability.
• First-Dollar Coverage: Employees access care with $0 deductibles, $0 copays, and $0 coinsurance* using a pre-funded Visa card.
• The Nonstop Warranty™: Level-set predictable monthly payments; any negative balance resets to zero at year-end; protects against unpredictable claims utilization.
• White-Glove Service: Implementation, open enrollment support, training, claims administration, and member services support.

*Depending on employer-selected plan design

Why Employers and Brokers Choose Nonstop Health

• Lower Costs and Budget Predictability: The Nonstop Warranty™ ensures monthly payments remain unchanged, and any negative balance resets to zero at year-end, protecting employers from unexpected costs.
• Recruitment and Retention Edge: Simplified, better health plans that save employees money and provide true peace of mind make your compensation package more attractive.
• Empowered Employees and Improved Access to Care: With first-dollar coverage, employees can confidently seek preventative, maintenance, and emergency care, making healthcare accessible and affordable for all.
• Reliable, Affordable, and Easy to Use: The preloaded Nonstop Health Visa card makes it easy for all enrolled employees to pay for covered medical expenses with no upfront costs at the point of care.
• Improved Health and Wellbeing: Employees can seek care when they need it, no longer forced to choose between their health and their finances.

Better Benefits for Less

Employers are urgently searching for ways to manage costs and design appealing benefits packages. The Nonstop MERP offers an attractive way to deliver top-of-the-line medical reimbursement benefits to attract and retain talent while saving 8–10% on premiums, without changing brokers, carriers, or provider networks.

Contact us today to learn more about the savings your organization can realize with Nonstop Health.