The answer is with a Section 105 Medical Reimbursement Plan.
In this article, we’ll discuss how to use a Section 105 Plan to reimburse employees for Medicare health insurance premiums.
What is a Section 105 Plan?
A Section 105 Plan allows tax-free reimbursement of medical and insurance expenses, as allowed under Section 105 of the Internal Revenue Code (IRC).
A popular type of Section 105 Plan is a Qualifed Small Employer Health Reimbursement Arrangement (QSEHRA), in which the plan is designed to reimburse eligible employees (and dependents) for their individually-purchased health insurance premiums and qualified medical expenses. Think of it like a business expense for health benefits.
Section 105 Plans Can Reimburse Medicare Insurance Premiums
A benefit of Section 105 Plans is that they can be used to reimburse employees for a wide range of health insurance premiums, including Medicare Part A, Medicare Part B, and Medicare HMO.
For a full list, see: What Health Insurance Premiums Can Section 105 Plans Reimburse?
Section 105 Medical Reimbursement Plans give employers a way to reimburse employees for Medicare premiums, and other types of health insurance premiums. This is a powerful tool to help employees with the cost of healthcare who are not on the company’s traditional group health insurance policy.
What questions do you have about using Section 105 Plans to reimburse Medicare health insurance premiums? Leave a comment. We’ll help answer them.