Medicare Solutions Debit Card
Employers need options to help older (65+) employees and retirees save on healthcare costs.
Medicare Solutions Debit Card
Medicare is often the best option for employees and retirees older than 65, but federal regulations prohibit employers from making direct premium payments for Medicare or Medicare-related coverages.
Fortunately, employers have options that do meet federal guidelines:
- Employer-sponsored Medicare Advantage Employer Group Waiver Plans (EGWPs) for retirees come with certain requirements by the Center for Medicare and Medicaid Services (CMS).
- Health Reimbursement Arrangements (HRAs) give active employees and retirees a way to receive reimbursements for premiums and medical expenses.
Employer-Sponsored Medicare Advantage Plan
Instead of reimbursing retirees for premiums and out-of-pocket expenses, companies may choose to offer an employer-sponsored Medicare Advantage EGWP plan to provide coverage under Medicare Parts C and D (aka Parts A, B, and D).
Here’s how EGWPs work: The employer negotiates with their insurance carrier to design a private Medicare Advantage plan for their retirees. The Medicare Advantage plan must follow all Medicare Parts C and D requirements except for those explicitly waived by CMS. Then, just as it does for private individuals choosing a commercial Medicare Advantage plan, the federal government pays the insurance carrier a set amount for each plan enrollee.
Due to the CMS waivers, EGWPs can set their own enrollment periods and send information to members without prior CMS approval. They also have fewer provider network requirements, among other relaxed mandates.
HRA Reimbursement Plans
By establishing an ICHRA or QSEHRA plan, employers can reimburse active employees and retirees for the healthcare premium costs they incur, such as:
- Medicare Part B (medical care)
- Medicare Part D (prescription drugs)
- Medicare Advantage (aka Medicare Part C)
- Medigap/Medicare Supplement
- Private health insurance coverage
ICHRA plans can reimburse premiums for Medicare Parts B and D, Medicare Advantage, and Medigap/Medicare Supplement coverage, as well as private health insurance coverage.
QSEHRA plan reimbursement requires that the employee have Minimum Essential Coverage (MEC), which can be met by either Medicare Part A or Medicare Advantage. QSEHRA funds can then reimburse premiums for Medicare Parts B and D, Medicare Advantage, and Medigap/Medicare Supplement coverages, in addition to private health insurance coverage.
Dental, vision, and hearing care
Security and Experience
Whether your administrative platform is proprietary or from a vendor whose card processing services don’t meet your needs, you can use DataPath’s benefits debit cards and card processing solutions with any of the Medicare-related programs referenced on this webpage.
Medicare Solutions in Summary
Can be used with active employees aged 65+ of any sized company
Can be used with active employees 65+ by companies that have less than 50 employees
Can be used with retiree plans
Can reimburse premiums
Has an annual premium reimbursement limit
Can provide Medicare Advantage coverage to company retirees
Can pay or reimburse qualified medical expenses, either with or without a linked debit card