TriCare
HRBiker
17 Posts
Can an employer do anything to help an employee pay premiums for a TriCare supplement plan for employees or retirees who want to stay on TriCare instead of taking coverage under the employer's plan?
Comments
It would appear that the Department of Defence is going to issue a rule for TriCare supplements that is similar to the CMS rule for Medicare supplements. According to the CMS, an employer cannot offer, subsidize, or be involved in the arrangement of a Medicare supplement policy where the law makes Medicare the secondary payer. Even if the employer does not contribute to the premium, but merely collects it and forwards it to the appropriate individual's insurance company, the employment based policy is the primary payer to Medicare.
Thus, TriCare could be inserted in the above statement wherever Medicare now appears. This includes TriCare supplement premiums paid for through a Sec. 125 plan. Employers appear to be out of the TriCare supplement business just as they are already out of the Medicare supplement business. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Only until 12/31/07. After that it becomes illegal to do so - it was part of the John Warner Defense Act, signed by Bush Oct '06. http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ364.109.pdf
See Section 707 on the 201st page.