As we approach Medicare’s Annual Enrollment Period, it’s the perfect time to review benefit options for clients with older employees who may be moving onto Medicare.
One great strategy we see this time of year is employers using a Health Reimbursement Arrangement (HRA) to reimburse Medicare premiums. Whether the client has under or over 20 employees, there’s an HRA solution that can work—and both options have no contribution limits.
Here’s a quick snapshot:
Groups with fewer than 20 employees:
IF Medicare is primary
Employers can offer an HRA to cover Medicare premiums and qualified expenses
Groups with 20 or more employees:
IF Medicare is secondary
Members can use an ICHRA to reimburse Medicare plan premiums
Must be in a class that is not eligible for group medical benefits (Medicare itself is NOT a class
