Can I reimburse my worker’s medicare premiums? Nice query! Realizing what’s reimbursable inside QSEHRA is crucial when planning to supply reimbursement advantages to your small enterprise staff. You could 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 just a few {qualifications} that your staff should meet with a purpose to be in compliance and reap the total advantages of an ICHRA (Particular person Protection HRA) or QSEHRA (Certified Small Employer HRA). Staff will need to have a certified well being plan that meets Minimal Important Protection Necessities. In addition they should 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 coverage reimbursement isn’t taxable or thought-about earnings.
Medicare and HRAs
There are 4 forms of Medicare however solely two meet the necessities for reimbursement beneath HRA’s tips whereas the opposite two are thought-about supplemental protection which can be used together with the opposite plans. Let’s break it down beneath:
- Medicare Half A is taken into account “hospital insurance coverage”. Because of this inpatient care is roofed, together with a talented nursing facility, hospital, and typically at residence care. With a view to enroll in Half A you’ll be able to’t be lined beneath social safety or a authorities worker who paid Medicare tax. The premium might be reimbursed on this scenario via the small enterprise HRA.
- Medicare Half B is often known as medical insurance coverage. That is supplemental protection that’s used together with Medicare Half A or Half C. The premiums are reimbursable since they’re thought-about medical bills. Do needless to say there are specific cases the place your premium wouldn’t be eligible for reimbursement you probably have your premium deducted out of your Social Safety, Railroad Retirement Board, or Workplace of Personnel Administration Advantages. You may all the time test with the Social Safety Administration to search out our your premium and the way for if it’s deducted instantly.
- Medicare Half C often known as Medicare Benefit is your solely personal insurance coverage choice. Medicare contracts with personal firms to insure you. The premiums are in compliance to be reimbursed via 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 may 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 handle your staff. Chat with us on the backside of your display about tax-free Worker Medical Reimbursement or click on that lovely inexperienced finances beneath to arrange a name.