When most people think of medical travel, they picture someone going to a different country to get care for a rare disease. While that certainly applies, medical travel is more common than in those instances. Millions of people have to travel to get quality care. For example, people living in rural areas may need to travel several hours to visit care centers. Others might need to travel to another state to see specialists for cancer treatment.
Whatever the case, those travel costs are another expense that makes getting healthcare challenging. Fortunately, there are ways that employers can help their employees. A medical travel account (MTA) is like travel insurance for medical care. MTAs are employer-sponsored programs that focus solely on travel expenses. How a Medical Travel Account Works If you're familiar with flexible spending accounts (FSAs) and health savings accounts (HSAs), you may have a general understanding of how unique assistance programs like this work. FSAs and HSAs are fantastic ways to cover future healthcare costs. However, they focus more on the care itself. A medical travel account is purpose-built to help pay for any travel expenses related to your care. It's like travel insurance for medical, covering everything from gas to airplane tickets. MTAs work differently than other accounts. First, they're entirely employer-owned and funded. Employees cannot contribute to an MTA. Another big difference is that employees who take advantage of an MTA must pay taxes on the amount they receive as a reimbursement. While an MTA has fewer tax advantages, it offers employers more control and flexibility. Without those tax advantages, employers can design an MTA how they see fit. For example, a company can decide how much reimbursement employees get and what annual, quarterly or monthly limits exist. Employers can also choose when coverage applies and what expenses they'll reimburse. Many companies will limit coverage to a specific radius outside the employee's home. Your employer can also choose whether to repay lodging or only use the MTA for every mile you need to travel. Like FSAs, employers typically require verification for reimbursement. That may include providing receipts for gas purchases and lodging. Read a similar article about premium only plans here at this page.
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