A: Medicare Supplement coverage cannot be paid for by your employer directly. However, you can receive a refund for your monthly premiums by your employer. As stated above, your employer must have a Section 105 plan in place for employee insurance.
Part B will cover 80% of your health care expenses, but that still means that you’ll be responsible for the remaining 20%. However, if you arm yourself with enough supplemental insurance coverage, you’ll be more likely to alleviate some of those medical expenses. Health insurance through your employer could be an excellent option to help relieve these excess costs!
Your employer cannot write out a check for your Medigap coverage itself, but they CAN refund you for your monthly Medigap premiums, just so long as they arrange a Section 105 plan for their employee group. Section 105 plans are in place to compensate employees for purchasing their health insurance plans, including Medigap and Medicare coverages.
There may be instances in which perhaps you can’t receive a refund for your Medigap premium. This doesn’t necessarily indicate that you should default to your employer’s health coverage for secondary insurance. Many times, Medicare Supplement plans prove to be less costly with a wide variety of coverages than that of an employer’s health plan.
Is employer reimbursement of Medicare premiums taxable income? Some Section 105 plans may permit only the refunds on healthcare expenses and premiums and the compensations aren’t taxable. If the Section 105 plan reimburses with cash for any remaining benefits, then both the money and reimbursements are taxable.