MTAs are employer-sponsored employee assistance programs that are specifically designed to pay for medical travel. The accounts are employer-owned and employer-funded and employees will be assessed income taxes for the reimbursements they receive. Since these are after-tax expected benefits, employers have much more flexibility and control over how the program is designed.
Employers choose:
- How much they’ll reimburse and what cadence. Employers can choose if they’ll offer their allowance on a monthly, quarterly or yearly basis.
- The travel expenses for which they’ll reimburse. For example, they choose if they’ll only reimburse for travel that’s outside a certain radius of the employee’s home, whether or not they’ll cover all lodging or only lodging above a certain amount per night, etc.
- Whose medical travel is eligible. Employers can choose whether or not they will cover travel for spouses’ and dependents’ care or solely medical travel necessary for the employees’ care. They can also choose if they will cover necessary or nonessential companion travel expenses.
- Verification requirements for the travel expenses (not the medical procedure).
- Plan duration and plan-end extension options such as offering a runout period or permitting a carryover amount.
MTA eligibility requirements
In order for employers to stay compliant with the ACA, their medical travel benefit must be properly designed. They cannot simply amend their corporate travel reimbursement policy.
- The medical travel benefit must be HIPAA compliant.
- Employees can only access an MTA through their employer.
Here are the two ways a company can add a medical travel benefit:
- It can be added as part of their existing medical plan, subject to copays and coinsurance requirements.
- It can be offered as a stand-alone program like the Lively MTA. If the employer chooses to offer a stand-alone MTA, it must be offered to either all employees, whether or not they’re enrolled in the company’s group health plan, or to a nondiscriminatory group of employees, regardless of whether or not they’re enrolled in the group health plan.
Why offer it
- To extend or maintain access to healthcare services covered under employee health plans.
- Advances the goals of Diversity, Equity, and Inclusion (DEI) programs. For example, offering options for those living in rural areas with a scarcity of specialists or reproductive care access throughout the U.S.
- Lowers employees’ financial burden and stress when traveling for needed medical care.
- Creates a more diverse benefits package with options for everyone’s unique healthcare needs. Plus, they are compatible with any kind of health insurance plan and can be participated in while also participating in an FSA, HSA, or HRA.
- Employers have almost complete control over account administration.
- Any unused funds are reabsorbed by the employer at the end of the plan term.
Lively's MTA Guide
What a Medical Travel Account is, the benefits of offering one, and what employers and employees need to know about participating in one.
The benefits of MTAs.
What a Medical Travel Account is, the benefits of offering one, and what employers and employees need to know about participating in one. Continue reading
Extend your employees' coverage with a Lively MTA
Offer options for everyone’s unique healthcare needs with medical travel benefits. Learn more.