Do you ever find yourself wondering if your employer can pay for your Medicare premiums? While your employer can’t pay your premiums per se, you’ll be glad to know that they can and may reimburse you for your premium costs! To compensate you, your employer will need to create a Section 105 Medical Reimbursement Plan.
Should you even enroll in Medicare health coverage if you’re employed? If your company has less than 20 employees, Medicare will work as your primary insurance coverage when you turn 65 years old. Any employer coverage that you have will be your secondary insurance. It will only cover claims after Medicare first pays on the claims.
If the company you work for has 20 or more employees, employer coverage will work as your primary coverage, and Medicare will serve as the secondary coverage.
You could choose to pull out of your employer’s health plan and enroll in Medicare and a Medigap plan. You’ll have to heavily weigh all options, including benefits and costs associated with your employer’s health coverage versus Medicare.
Below, we’ll go over your options for being reimbursed for Medicare premiums you’ve paid out of pocket from your employer.
Medicare Premium Reimbursement with Employer Section 105 Plan
A Medicare premium reimbursement is a fantastic way for employees to receive refunds of their Medicare premiums if they’re actively working in a company.
The Part B premium will now be $144.60 in 2020, and not everyone wants to pay these costs if they have access to health care through an employer.
Often times, Medicare premiums may cost you less than costs for group insurance at your place of employment. If you prefer your Medicare coverage to your group coverage, you may be eligible to receive premium reimbursements if your company has the proper safeguards and programs in place.
Also, it’s important to keep in mind that getting reimbursed from Medicare vs. your employer are two different topics.
Section 105 Plan
A Section 105 Plan is a reimbursement health plan that lets small companies recompense employees for their medical costs on a tax-exempt basis. Although there are several different plan options, the most popular 105 program is a Health Reimbursement Arrangement plan.
A Section 105 plan can provide advantageous benefits and are prevalent in comparison to traditional group insurance. Some Section 105 plans permit reimbursements that are tax-free for any medical services that employees receive.
Medicare Premium Reimbursement Arrangement
A Medicare premium reimbursement arrangement is a system in which your employer will reimburse you for either some or all of your Medicare Part B or D premiums. As long as your employer’s payment plan ties in with the group health plan.
Employer-Sponsored Medicare Advantage Plans
Medicare Advantage plans let employers, government entities, and unions issue complete Medicare Advantage coverage to enrollees. Advantage policies can offer both Part A and B benefits and can also provide supplemental benefits above and beyond traditional benefits.
Medicare Employer Reimbursement FAQ’s
Get the Answers You Need from an Expert
Like so many others, you may have a million and one questions about whether you should enroll in Medicare while you’re still actively working. Making sense of primary and secondary coverages can prove to be exhausting and frustrating.
Our team here at MedicareFAQ can help you make sense of how primary and secondary insurance coverage will work. We can help you prepare for what kind of monthly costs you could face. Call our team for a free quote today! You can also use our online quote tool here to see rates in your area now.