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Post Retirement Medical Expense Plan

Post Retirement Medical Expense Reimbursement Account

  1. Tax Deductible
  2. Tax Deferred Growth
  3. Tax Free Distributions

Post Retirement Medical Expense Reimbursement Account Benefit is the most overlooked benefit in the industry. One of the largest expenses a retiree faces is their health care costs in retirement.

Health Care Costs For Average American Couple Retiring Today

The average lifetime retirement health care premium costs for a 65-year-old healthy couple retiring this year and covered by Medicare Parts B, D, and a supplemental insurance policy will be $266,589. If we were to include the couple’s total health care (dental, vision, co-pays, and all out-of-pockets), their costs would rise to $394,954. For a 55-year-old couple retiring in 10 years, total lifetime health care costs would be $463,849.

IRC Code Section 401(h) Medical Expense Account can currently accumulate up to $594,000 that can be distributed tax free for post retirement medical benefits. Employers can create an account and take a 100% deduction, grow the funds tax deferred, and then distribute the funds tax free for post retirement medical benefits.

Example of Medical Expense Reimbursement Benefits
AcupunctureHospitalization Insurance
ADD Counseling and AssistanceHospital Bills
Air Lift TransportationInsulin
AlcoholismLaboratory Fees
Alternative HealthcareLaetrile by Prescription
Alternative MedicinesLasik Eye Surgery
AmbulanceHire Lead Base Paid Removal-Children
Artificial Limbswith Lead Poisoning
Artificial TeethRetirement Home for Medical Care
Assisted Living Facilities

Long Term Care, Nursing Homes

Asthma and Allergy TreatmentMedical Information Plan
Birth Control PillsMedicines
BracesMembership Fees for Medical Services,
Braille-Books and MagazinesHospitalization, Clinical Care, Health
ChiropractorsMaintenance, Health club memberships
Christian Science Practioners’ FeesNurses Fees, Nurses Room and Board
Contact Lenses Including Exam FeeS.S. Tax (Where Paid by Taxpayer)
Co-PaysObstetrical Expenses
Cosmetic Surgery (Even Though 

Operations (100% of All Costs)

  not by a Physician)

Orthopedic Shoes

Cost for Care Outside the United States


Cost of Operations & Related Treatments

Personal Trainers


Physical Therapy


Physician Fees


Premiums for LTC
Dental Cosmetic SurgeryPreventive Care including but not limited to

Dental Fees

Spa Facilities, Usage Fees for Facilities
Dependent Care

Psychiatric Care

Dermatologist CarePsychologist Fees
Diagnostic Fees“Seeing-eye” Dog and its Upkeep


Specialists and Specialized Treatments
ElectrolysisSpecially Equipped Cars
Experimental CareSpecial Care Costs for Disabled Dependents
Eyeglasses, Including Examination Fee,Special Diets
Laser Surgery for Vision CorrectionSterilization Fees
Fees of Practical NurseSupport Groups
Fees for Healing ServicesSurgical Fees
Fees of ChiropractorsTherapy Treatments
Fees for Fitness Programs and Facilities

Transport Expenses for Medical Services

Fees of Licensed Osteopaths>including Preventative Care
Flu ShotsTuition at Special School for Handicapped
Hair TransplantsViagra
Health Insurance PremiumsVitamins
Hearing Devices and BatteriesWheelchair
HospiceWeight Loss Programs
In Home CareX-rays


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