Can I reimburse my worker’s medicare premiums? Great query! Knowing what’s reimbursable inside QSEHRA is crucial when planning to supply reimbursement advantages to your small enterprise staff. You might have staff on Medicare and marvel if they’re eligible to obtain the tax free advantages of QSEHRA. The excellent news is sure!
Can I Reimburse My Employee’s Medicare Premiums?
There are a couple of {qualifications} that your staff should meet so as to be in compliance and reap the complete advantages of an ICHRA (Individual Coverage HRA) or QSEHRA (Qualified Small Employer HRA). Employees should have a professional well being plan that meets Minimum Essential Coverage Requirements. They additionally have to be a full time worker (30 hours or extra per week), have labored for 120 consecutive days, and be a US Citizen.
You as a enterprise proprietor will get to put aside tax free cash to reimburse your staff to assist cowl the price of insurance coverage premiums and/or qualifying medical bills.
You learn that proper. Insurance reimbursement shouldn’t be taxable or thought-about revenue.
Medicare and HRAs
There are 4 kinds of Medicare however solely two meet the necessities for reimbursement underneath HRA’s pointers whereas the opposite two are thought-about supplemental protection which are used along side the opposite plans. Let’s break it down under:
- Medicare Part A is taken into account “hospital insurance”. This signifies that inpatient care is roofed, together with a talented nursing facility, hospital, and typically at house care. In order to enroll in Part A you’ll be able to’t be lined underneath social safety or a authorities worker who paid Medicare tax. The premium will be reimbursed on this state of affairs by means of the small enterprise HRA.
- Medicare Part B is also called medical insurance coverage. This is supplemental protection that’s used along side Medicare Part A or Part C. The premiums are reimbursable since they’re thought-about medical bills. Do remember that there are particular situations the place your premium wouldn’t be eligible for reimbursement if in case you have your premium deducted out of your Social Security, Railroad Retirement Board, or Office of Personnel Management Benefits. You can all the time test with the Social Security Administration to seek out our your premium and the way for if it’s deducted straight.
- Medicare Part C often known as Medicare Advantage is your solely non-public insurance coverage choice. Medicare contracts with non-public corporations to insure you. The premiums are in compliance to be reimbursed by means of the small enterprise HRA.
- Medicare Part D is the prescription drug protection choice. This can also be supplemental insurance coverage that may associate with Medicare Part A or C. You can reimburse your premiums that you simply pay out of pocket with QSEHRA.
→ Read extra about ICHRA and Medicare right here
Need assist with HRAs and reimbursing medicare premiums?
We are right here that can assist you navigate your well being reimbursement association choices and handle your staff. Chat with us on the backside of your display screen about tax-free Employee Medical Reimbursement or click on that lovely inexperienced funds under to arrange a name.