Tax Facts

452 / Can an individual coverage HRA be used where a participant is covered under one type of health coverage and his dependents are covered under another (i.e., Medicare)?

Yes. There is no requirement that a participant and his or her dependents be covered under the same type of plan, so that an individual coverage HRA may be provided to an employee-participant who is covered under Medicare and to his or her dependents, who are covered under individual health insurance coverage obtained in the marketplace.1





1.     Treas. Reg. § 54.9802-4(e).

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