Benefit Open Enrollment is underway for most organizations this time of the year. Benefit Managers and employers have been preparing all year to offer diversified options that meet the needs of the employees while still trying to control cost. Forward-thinking consultants are presenting Benefit Managers with solutions that do just that with a TRICARE Supplement.
According to the US government Defense Health Agency, there are about 9.5 million beneficiaries, active duty service members, National Guardsmen, reservists, retirees and their families, utilizing TRICARE for their medical insurance. Retired military members and their families who seek civilian employment after their service is complete can choose between the employer-sponsored plan and TRICARE for their primary medical coverage. If electing to utilize TRICARE, a smart option for a retired member is to continue with TRICARE coupled with the TRICARE Supplement Plan, on a pre-tax basis, to pick up costs left behind by the military health plan. In most cases, this combination provides the employee with virtually 100% coverage between TRICARE and the TRICARE Supplement, up to legal limit.
Sharon Bohlman, formerly a benefit manager for a global aerospace and defense contractor and currently president of Strategic Benefit Solutions, Corporate Benefits and HR Advisors states in an Employee Benefit News article “the supplemental plan, which is an easy add-on that can be implemented at any time, helps keep claims down. After serving for at least 20 years, many retired military seek employment as civilians around age 50, right when large claims begin for most of the population. Whether they are healthy or not, none of the costs go toward the employer’s medical spend.”
- Offered on a pre-tax* basis through a cafeteria plan under Section 125
- No pre-existing condition clause
- Guaranteed acceptance; no medical examination required to apply
- Covers TRICARE deductible, cost shares and co-pays and pays TRICARE prescription co-pays
- Freedom of choice; no referrals required
- Fully portable if employment ends for any reason
- ACA Exempt
Now take a moment and look at your healthcare insurance offerings. Is it addressing all of your employees’ needs?
Jessica has over 13 years of extensive experience with account development and financial consultation for her clients. She specializes in identifying and implementing innovative solutions to provide cost savings and effective management of programs within her client’s portfolio. She publishes materials relating to TRICARE and TRICARE/CHAMPVA Supplement to provide education on government-related healthcare programs. If you are a broker or employer interested in learning more about the benefits of offering TRICARE Supplement, please contact Jessica, at (301) 816-0045 ext. 156.
*This material and the concepts presented here are for information purposes only and should not be construed as tax or legal advice. Any tax and/or legal advice you may require or rely on regarding this material should be based on your particular circumstances and should be obtained from an independent professional advisor.