Medicare Premiums: FSA Eligibility
What are medicare premiums?
Medicare premiums are the cost of obtaining Medicare insurance. Medicare premiums are only eligible for reimbursement with certain consumer-directed healthcare accounts, which should be verified first with an account administrator.
There are multiple types of Medicare premiums including Part A, B, C and D. Medicare is generally a health insurance policy for the elderly (over age 65) and for adults with disabilities. Medicare is run by the government through a network of more than 30 health insurance companies (Medicare.gov).
Part A Medicare is for hospital and hospice insurance. Part B Medicare is for medical insurance such as doctor's visits and other outpatient needs. Part C is called Medicare Advantage, and it provides an alternative way of receiving Part A, B and D benefits. Part D is for prescription drugs.
All Medicare premiums are charged with respect to the Medicare part classification for which the insurance benefit is needed. So for example, there may be separate Part A and B premiums charged for benefits under each part.
Medicare reimburses medical expenses under a fee-for-service model. If a Medicare premium hasn't been paid with pretax dollars, then it may be eligible for reimbursement with a consumer-directed healthcare account, depending on the account's specific details. Check with an administrator to verify eligibility.
Over 48 million Americans use Medicare. It's technically considered a national social insurance program. Medicare does not cover all healthcare expenses, and it contains costs in the form of premiums, deductibles, and coinsurance. These are all out of pocket expenses. Some may be eligible for reimbursement with a consumer-directed health care plan.