A company has a medical reimbursement plan for officers that cover all costs, after the officer has paid the first $2,500 from his or her funds. For all employees who are not officers, the medical reimbursement plan applies only after the employee has paid $1,000 from his or her own funds. An officer incurred $3,500 in medical expenses and was reimbursed for $1,000. An hourly worker also incurred $2,500 in medical expense and was reimbursed $1,500.