Deductibility of non employer medical coverage cost through employer s

[Guest Mwbdbs]

Can a employee deduct the cost of personal medical coverage through their sponsored 125 plan.

How would you verify the expense.

[SLuskin]

The plan document would need to provide for this type of reimbursement account. It cannot be part of the medical expense FSA or the employer-sponsored premium conversion. The coverage needs to be owned by the employee. We accept premium notices with evidence of payment. If automatically withdrawn from checking account, we require something from the ins. co which shows the owner, type of coverage and premium due, along with copies of the monthly withdrawals.

[Guest stan]

Has anyone ever heard of doing this for medicare premiums? A new client tells us that a prior administrator had allowed this (along with long term care premiums, which are clearly not allowed in a cafeteria plan). I've never heard of a cafeteria plan allowing medicare premiums to run through on a pre-tax basis.

[SLuskin]

From what I understand, you can't run medicare premiums through if the employer sponsors a group medical plan due to some HCFA rulings. If an employer does not sponsor any kind of group medical plan at all, it looks to be permissible.

[Guest stan]

Thanks. I had run accross something that indicated the Medicare Secondary payor rules didn't allow pre-tax payment of medicare premiums when the employer sponsored a group health plan. It sounds like it's probably the same information.