Best answer: Can I use my HRA to pay for Medicare premiums?

Can an HRA pay for Medicare premiums?

The following types of insurance premiums are all HRA-qualified, provided they’re not already paid with pre-tax dollars: Major medical individual health insurance premiums. Dental care and vision care premiums. Medicare Part A or B, Medicare HMO, and employer-sponsored health insurance premiums.

Can you use HRA with Medicare?

You can have an HRA if you’re enrolled in Medicare or a healthcare flexible spending account (HCFSA)Credits in an HRA do not earn interest. Credits in an HRA are forfeited if you switch health plans, or if you leave federal employment other than to retire. Your HRA is administered by the health plan.

Can HRA reimburse premiums?

HRAs can reimburse many health care products and services, including the following types of insurance premiums, provided they were not already paid with pre-tax dollars: Major medical individual health insurance premiums; Dental care and vision care premiums; Qualified ancillary premiums (e.g., accident policies); …

Is HRA primary to Medicare?


HRA pays (reimburses) first, then Medicare, then Medicare supplement (if any). You are still working and you, or your spouse, or a dependent are on Medicare.

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What is a Medicare HRA plan?

HRAs consist of funds set aside by employers to reimburse employees for qualified medical expenses, just as an insurance plan will reimburse covered individuals for the cost of services incurred. HRAs are considered to be Group Health Plans (GHPs) and thus HRA coverage is subject to Section 111 Medicare.

What can I use my HRA to pay for?

HRAs can be used to pay for qualified medical expenses, which include prescription medications, insulin, an annual physical exam, crutches, birth control pills, meals paid for while receiving treatment at a medical facility, care from a psychologist or psychiatrist, substance abuse treatment, transportation costs …

How do I reimburse an employee for Medicare premiums?

To be eligible for an Individual Coverage Health Reimbursement Arrangement, you’ll need Part A and Part B, or Part C. You can use the ICHRA to reimburse premiums for Medicare and Medigap as well as other costs. Employers have more choice in which medical costs are eligible for reimbursement under an ICHRA.

Are Medicare HRA reimbursements taxable?

Individual Coverage HRAs can help enable businesses to focus on what they do best— serve their customers—and not on navigating and managing complex health benefit designs. Individual Coverage HRAs provide tax advantages because the reimbursements provided to employees do not count toward the employees’ taxable wages.

What is the difference between HSA and HRA?

An HRA is an arrangement between an employer and an employee allowing employees to get reimbursed for their medical expenses, while an HSA is a portable account that the employee owns and keeps with them even after they leave the organization.

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What is the Medicare reimbursement program?

The Medicare Part B Reimbursement program reimburses the cost of eligible retirees’ Medicare Part B premiums using funds from the retiree’s Sick Leave Bank. The Medicare Part B reimbursement payments are not taxable to the retiree.

How does Medicare reimbursement account work?

Traditional Medicare reimbursements

Instead, the law states that providers must send the claim directly to Medicare. Medicare then reimburses the medical costs directly to the service provider. Usually, the insured person will not have to pay the bill for medical services upfront and then file for reimbursement.