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TRICARE-related HRA reimbursements: Know the rules
Know the requirements for qualifying employee benefits in a TRICARE-related HRA reimbursement program
TRICARE is the component of our military health insurance programs for the uniformed armed services that covers civilian health benefits for military personnel, retirees, and their dependent. Some members of the Reserves are also eligible. An employer with a qualifying Section 125 POP Plan may provide TRICARE-related HRA reimbursements to employees enrolled in TRICARE for their premiums and other medical expenses as long as the rules governing that transaction are carefully followed.
TRICARE-related HRA. An employer that reimburses (or pays directly) some or all of the medical expenses of employees covered by TRICARE can avoid the excise tax if the following requirements are met:
- The employer offers to the employees a minimum value group health plan that does not consist solely of excepted benefits
- The employees participating in the HRA are actually enrolled in TRICARE
- The HRA is only available to employees enrolled in TRICARE
- The HRA is limited to reimbursement of cost sharing and excepted benefits, including TRICARE supplemental premiums
However, employers should be aware of laws that prohibit offering a financial or other incentive for TRICARE-eligible employees to decline employer-provided group health plan coverage.
Core Documents, Inc. has been providing free consulting, affordable plan documents, and plan updates as needed for Section 125 Cafeteria Plans and Health Reimbursement Arrangements since 1997. See more information about these fringe benefit plans at Core Documents’ website: www.coredocuments.com, or call toll free 1-888-755-3373.
HRA Online Order Form
HRA Fax Order Form
For more information on HRA plans:
Small Business Healthcare Relief Act H.R. 5447 Would Create Safe-Harbor for Non-Exchange Individual Health Insurance Premium HRA Plans
$299 HRA Plan Document & SPD Order Form Options – Core Documents
Adding the HSA Module with the Health FSA and/or HRA provides more options for tax savings
Employer Funded Health FSA W2 Reporting Guidance – HRA and HSA Excluded