Close Close

Life Health > Health Insurance > Life Insurance Strategies

DOD: Cash Payments May Not Violate Tricare Rules

Your article was successfully shared with the contacts you provided.

The U.S. Department of Defense has proposed new regulations for coordination of private employee benefits with Tricare.

Tricare is a federal program that provides health coverage for military personnel, dependents and retirees who get care away from military facilities.

The proposed regulation would permit employers to use Section 125 cafeteria plans to make cash payments to employees in lieu of providing health coverage, as long as the same payments were available to all employees and not simply those eligible for Tricare, officials write in a preamble to the proposed regulations, which appear today in the Federal Register.

Federal law does not permit employer-sponsored group health plans to give employees who are eligible both for private coverage and for Tricare incentives to choose Tricare.

The Section 125 cash payments are permissible only if “the plan treats all employees the same and does not illegally take Tricare eligibility into account,” officials write.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.