Retiree Only HRA's

[Belgarath]

Not sure if this is the correct forum - question is, (for a governmental entity, if it matters) - can the entity set up an HRA for former employees that also covers expenses for spouses and dependents?

I lack expertise in this area (putting it kindly) and although it seems very clear that Retiree Only HRA's are perfectly allowable, I'm not finding hard guidance that permits coverage for spouses and dependents. Or perhaps the guidance is the other way around - coverage for spouse and dependents allowed unless otherwise prohibited, and it ain't otherwise prohibited.

1. Anyone know the answer?

2. Any citations/sources you can point to? Thanks for any assistance!

[acm_acm]

HRAs, HSAs and FSAs can generally be used to reimburse the participant's eligible expenses and those of the participant's eligible dependents (spouse and/or children).  As long as the document you use to establish the RO HSA is worded correctly, you should be fine.

[jpod]

Belgarath, are you referring to retiree HRAs as an exception to the ACA rules generally prohibiting them?  If so, I have a feeling that you are not going to find something that says, specifically, that it can be used for their spouses and dependents, but I don't think you'll find anything that says it can't be used for them, and the implication of that, at least to me, is that if the exception was so narrow the law and the subsequent agencies' interpretation would have said so.

[Belgarath]

Thanks Jpod. Yeah, that's the conclusion I have been reaching after looking into it a little more. Now the general question that was asked has morphed into the REAL question - funny how often that happens - you frequently don't get asked the real question up front. Real question turns out to be whether the employer can offer an HRA (for active employees) that reimburses Medicare premiums. Looks to me as though if the requirements of Notice 2015-17 are satisfied (Q&A-3) that it is ok to reimburse Medicare Part B and D premiums, including Medigap premiums. Also TRICARE. Sadly, I do not yet even know what Medicare Part B & D really are, nor what TRICARE is, and I am merely assuming the Medigap is something that covers expenses that Medicare doesn't. I've got some reading to do!

This is probably old stuff to y'all, but I found this website to be very helpful. https://www.medicare.gov/supplement-other-insurance/how-medicare-works-with-other-insurance/how-medicare-works-with-other-insurance.html