Medicare Supplemental Deduction

[Guest gfeligonde]

A handful of employees have joined the ranks of the 'Working Aged' and are opting for Medicare as their primary insurance. I am being instructed that the employer will pay for the supplemental policy and that it is a deductible expense. All the references I can find say the opposite.

Could somebody please direct me to the actual rule. Either way, allowable or not, I need to be able to cite an authority rather than 'everybody says'.

Thank you,

gf

[Guest Ira Hayes]

Working aged cannot deduct premiums for supplemenal coverage under Medicare Part A. Employer can deduct premiums for supplemenal coverage under Medicare Parts A or B per Treas.Reg 1.162-10(a)

A handful of employees have joined the ranks of the 'Working Aged' and are opting for Medicare as their primary insurance. I am being instructed that the employer will pay for the supplemental policy and that it is a deductible expense. All the references I can find say the opposite.

Could somebody please direct me to the actual rule. Either way, allowable or not, I need to be able to cite an authority rather than 'everybody says'.

Thank you,

gf

[Jacmo]

An employer can pay for Medicare Supplement policies thru an HRA or MERP. See IRS Notice 2002-45 which references Code 213 expenses which includes supplement insurance premiums.