Member Article

ALI-ABA Pension, Profit-Sharing, Welfare, and other Compensation Plans; Washington, DC Many of the defined contribution health plans being marketed involve a higher deductible indemnity type of coverage either with or without a network of managed care providers (the “Policy”) accompanied by a “personal care account” or “PCA” which is funded either by employer, employee or both contributing to the PCA. Some PCAs reimburse only medical expenses under section 213 of the Internal Revenue Code of 1986, as amended (the “Code”), some reimburse both medical expenses under section 213 of the Code, and other expenses at the employee’s discretion (e.g., massages, plastic surgery nips and tucks). Many of these are marketed with the PCA rolling over from year to year with an annual increment. Some are marketed without a PCA.