A Section 105 plan is an IRS-regulated health benefit.  It allows for the tax-free reimbursement of medical and insurance expenses, as described under Section 105 of the Internal Revenue Code (IRC). These plans can be designed to benefit the employees and employers in multiple ways. It can be used to pay for qualified health expenses, cover the cost of insurance premiums (up to a qualified amount), and it can be offered alongside a group health plan to reduce the cost on the employer. It also offers tax-free benefits to the employer. Employers can also opt for different types of plans based on a consultation with the employee and the benefits that the plan gives.