Can I reimburse my worker’s medicare premiums? Nice query! Figuring out what’s reimbursable inside QSEHRA is important when planning to supply reimbursement advantages to your small enterprise staff. You will 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 Worker’s Medicare Premiums?
There are a couple of {qualifications} that your staff should meet to be able to be in compliance and reap the total advantages of an ICHRA (Particular person Protection HRA) or QSEHRA (Certified Small Employer HRA). Staff should have a professional well being plan that meets Minimal Important Protection Necessities. In addition they 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 is not taxable or thought-about earnings.
Medicare and HRAs
There are 4 forms of Medicare however solely two meet the necessities for reimbursement underneath HRA’s pointers whereas the opposite two are thought-about supplemental protection which can be used along side the opposite plans. Let’s break it down under:
- Medicare Half A is taken into account “hospital insurance coverage”. Which means that inpatient care is roofed, together with a talented nursing facility, hospital, and typically at house care. To be able to enroll in Half A you possibly can’t be coated underneath social safety or a authorities worker who paid Medicare tax. The premium may be reimbursed on this state of affairs by way of the small enterprise HRA.
- Medicare Half B is also referred to as medical insurance coverage. That is supplemental protection that’s used along side Medicare Half A or Half C. The premiums are reimbursable since they’re thought-about medical bills. Do understand 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 Safety, Railroad Retirement Board, or Workplace of Personnel Administration Advantages. You’ll be able to at all times examine with the Social Safety Administration to seek out our your premium and the way for if it’s deducted instantly.
- Medicare Half C generally known as Medicare Benefit 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 way of the small enterprise HRA.
- Medicare Half D is the prescription drug protection choice. That is additionally supplemental insurance coverage that can associate with Medicare Half A or C. You’ll be able to reimburse your premiums that you just pay out of pocket with QSEHRA.
→ Learn extra about ICHRA and Medicare right here
Need assistance with HRAs and reimbursing medicare premiums?
We’re right here that will help you navigate your well being reimbursement association choices and care for your staff. Chat with us on the backside of your display about tax-free Employee Medical Reimbursement or click on that stunning inexperienced price range under to arrange a name.
