Can my employer reimburse my Medicare premiums?

Question

Cody Biggs · Accepted Answer

Yes, an employer can reimburse Medicare premiums, but it generally needs to be done through a properly structured arrangement rather than simply paying an employee’s Medicare premium informally.

For example, an Individual Coverage HRA (ICHRA) can be designed to reimburse an employee for Medicare Part A (if a premium applies), Part B, Medicare Advantage (Part C), Part D, and even Medicare Supplement premiums.   Medicare Part B and Part D premiums are recognized as medical expenses under the tax code.  

There are some important rules, particularly if the employer also offers a traditional group health plan. An employer generally cannot single out Medicare-eligible employees and simply pay them to leave the group plan and enroll in Medicare, because Medicare Secondary Payer and other benefit rules can come into play. Also, an Excepted Benefit HRA cannot reimburse Medicare Part A, B, C, or D premiums.  

So if you’re asking this for an employer/client situation, tell me how many employees the company has and what coverage they currently offer, and I can tell you which reimbursement structure would likely work.

Michael McGarrigle · Answer

Yes. An employer can reimburse an employee for Medicare premiums, but it needs to be done through a properly structured, compliant arrangement, such as an ICHRA (Individual Coverage Health Reimbursement Arrangement) or, for certain small employers, a QSEHRA (Qualified Small Employer Health Reimbursement Arrangement). An ICHRA can reimburse Medicare Part A, B, C, D and Medigap premiums. Employers should not simply reimburse Medicare premiums informally, since ACA and Medicare Secondary Payer rules may apply.

Answered by Michael McGarrigle on August 11, 2026

Broker Licensed in FL, AR, DE & 13 other states

Answered by Michael McGarrigle Medicare Insurance Agent

Josie Villa · Answer

Yes, **an employer can potentially help pay an employee’s Medicare premiums**, but the rules depend on **how the employer provides the reimbursement** and whether the employee is actively working.

For example, an employer may offer an arrangement such as an **Individual Coverage Health Reimbursement Arrangement (ICHRA)** that can reimburse certain individual health coverage expenses. However, employers generally need to structure the benefit properly under federal tax and Medicare rules.

A few important points:

* **Medicare Part B premiums** can be eligible for reimbursement under certain employer benefit arrangements.
* **Part D premiums** may also be reimbursable under some arrangements.
* The employer generally **should not simply pay the Medicare premium directly** without making sure the arrangement complies with applicable rules.
* If you're still working and have employer coverage, **who pays first—Medicare or the employer plan—depends on the employer's size and your circumstances.** ([Medicare][1])
* In 2026, the standard Part B premium is **$202.90 per month**, although some people pay more based on income. ([Medicare][2])

**One important distinction:** If you're asking whether **your employer can reimburse you personally for the Medicare Part B premium that is deducted from your Social Security check**, the answer can be different from simply asking whether an employer can offer a Medicare-related benefit.

Craig Glynn · Answer

Yes, your employer may be able to help pay your Medicare premiums, but it depends on the type of employer coverage or reimbursement program they offer.

The most important thing is to check with your employer before making changes to your Medicare coverage. Medicare rules can vary depending on your employment status and the type of coverage you have.

Ryan Franco · Answer

Yes, an employer can reimburse Medicare premiums. The employer has to comply with Affordable Care Act and IRS rules.

Ron Cronwell · Answer

Yes, they can remimburse your Medicare coverage premiums. But that reimbursement may be treated as taxable income by federal and state authorities.

Jason Walker · Answer

In some cases they can. Your companies HR rep should be able to confirm if that is something they do.

Joseph Peck · Answer

That is up to the employer. At times paying for your medicare can be less expensive than the group plan. You will need to discuss with your benefits department.