Jump to content

Medicare Secondary Trap for Unwary

Recommended Posts

Sharing a sad story involving a local church in case it might help your clients avoid the "trap".

Its generally understood that the Medicare Secondary Payer (MSP)rules don't apply to small employers under 20 employees.

Small church (5 employees) thought they were exempt from MSP and reimbursed age 65 employee for premiums for Medicare Part B and D and Medicare Supplement.

Turns out their group health plan is a self-funded multiple-employer plan sponsored by the national church and they've now learned that since the plan covers at least 1 employer who has over 20 employees they are not considered a small employer exempt from MSP.

Lesson learned: small employers participating in a multiple-employer health plan are very likely subject to MSP.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...