Pros:

  • Provides employees with choice and flexibility.
  • Helps employers control healthcare costs.
  • Tax-free reimbursements for both employers and employees.
  • Can be structured to meet compliance needs.
  • Allows for employer-defined employee classes.

Cons:

  • Employees must shop for their own coverage, which may require guidance.
  • Some individual markets may have limited plan options depending on the region.
  • Employers need to set up and manage the reimbursement process. however it is recommended that employers use a compliant Benefits administrator to do this.