I was told that the owners of a S Corp can have the corporation pay their out of pocket expenses under Section 105(h) after having their board minutes indicate this is for "officers or owners, etc." but not use specific names. The owners of a S Corp are not eligible for the HRA that they are setting up for their employees. I cannot find much on this concept under 105(h). Is this correct?

An HRA is ok for your client. The business sets up a self-insured account for the employees to use to pay eligible medical expenses with. Employee money cannot be used to fund the account. To get further information either speak with your broker, or just google Health Reimbursment Arrangements, there is plenty on the web.

I need to know if the Owners can set up a "corp pay" account through the company for their own out of pocket medical expeses under section 105h. The HRA is set up for the employees.