Medicare Premium Reimbursement Arrangements

MPRAs can be offered to both active employees and retirees. However, the arrangement’s structure might differ based on the employee’s status. For active employees, the MPRA should be carefully designed to comply with Medicare Secondary Payer rules, which dictate that an active employee’s health coverage cannot be coordinated with Medicare….

Employers offering MPRAs need to ensure compliance with various federal regulations, including the Affordable Care Act (ACA), Medicare Secondary Payer (MSP) rules, and tax codes. One key compliance aspect is ensuring that the MPRA is offered only to employees who are actually enrolled in Medicare. Furthermore, the arrangement should be…

Under an MPRA, an employee enrolled in Medicare can receive reimbursements for their Medicare premiums, such as Part B and Part D premiums as well as Medigap premiums. These reimbursements are usually made on a tax-free basis, provided that the arrangement meets specific legal requirements. The employee pays their Medicare…

A Medicare Premium Reimbursement Arrangement (MPRA) is a type of program that allows employers with fewer than 20 employees (where Medicare is primary and the group plan is secondary) to reimburse their employees for Medicare premiums, including Part B, Part D, and Supplement premiums. This arrangement is typically offered to…