How can a company pay an individual's Medicare Part B premium?
Question:
Answer:
This is a good question! A local organization was considering implementing a policy whereby it would pay the insurance premiums for Medicare-eligible employees about a year ago and did some checking through attorneys. The rules discovered were that a private employer that offers a health care plan to employees must offer the same plan to all employees-- even those eligible for Medicare. There was no way found for the employer to pay the Medicare premiums for the employees eligible to enroll in Medicare.
I understood that the reason this could not be done was due to a state rule--but actually, the barrier is probably a federal rule. Allowing this practice would increase costs to Medicare and probably reduce the costs of employer health insurance plans. Congress probably is concerned enough about soaring Medicare costs. Of course, there is probably a plethora of other political reasons...
Some feel this rule engenders employers' discrimination against older workers. The fact is, more health problems develop the older we get and the American workforce is aging quickly. Paying for health insurance is a big problem for most employers--and especially small business. Many choose not to provide a health insurance plan at all due to these plans' costs--which is a major reason why there are so many uninsured Americans today.
Suggestion: check with someone in your State's Insurance Commissioner's office. There is someone there who might be very familiar with this question--or would know someone else who would have the information you seek. Or check with an attorney familiar with health insurance and employment law in your state.
Good luck and best wishes!
More Questions & Answers...