Medicare and ICHRA
How your Individual Coverage Health Reimbursement Arrangement (ICHRA) and Medicare work together.
Table of Contents
What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an employer-funded benefit that reimburses you for individual health insurance premiums and other eligible medical expenses.
Instead of offering a traditional group health plan, your employer provides a monthly allowance that you use to purchase your own coverage—such as Medicare.
When Do You Become Eligible for Medicare
Most people first become eligible for Medicare at age 65. This starts your Initial Enrollment Period, which includes:
- 3 months before your birthday month
- Your birthday month
- 3 months after your birthday month
If you are already over age 65 and your employer is newly offering an ICHRA, you will likely qualify for a Special Enrollment Period, allowing you to enroll in Medicare outside of your original enrollment window.
How Your ICHRA Works with Medicare
You can continue using your ICHRA once you transition to Medicare. Your employer’s monthly allowance can be used to reimburse you for Medicare-related premiums, including:
- Medicare Part B premiums
- Medicare Part D premiums
- IRMAA if applicable (Income Related surcharge)
- Medicare Advantage (Part C) plans
- Medicare Supplement (Medigap) plans
To be eligible for reimbursement, you must be enrolled in both Medicare Part A and Part B.
Using Medicare with an ICHRA allows you to lower your out-of-pocket premium costs, choose the plan that best fits your needs, and receive tax-free reimbursements for qualified expenses.
How to Enroll in Medicare
Enrollment in Medicare Part A and/or Part B depends on your age and whether you have already enrolled in Part A.
Use the links below to find step-by-step enrollment guidance based on your situation.
Start Planning for Medicare with HTA
If you are within 6 months of becoming eligible for Medicare, now is the ideal time to start planning.
An HTA Medicare advisor can help you understand how Medicare will work with your ICHRA, review your plan options, and guide you step-by-step throughout the process.
How to Submit Reimbursement for Your ICHRA
To receive reimbursement through your ICHRA, you’ll need to submit proof of your premium payments.
Follow the steps below based on your coverage type:
Additional Information