A Medicare Premium Reimbursement Arrangement lets a small employer reimburse Medicare-enrolled employees tax-free for their Medicare premiums. It must be designed carefully, since Medicare Secondary Payer rules generally bar employers with 20 or more employees from steering workers off the group plan.
When you retire, your active employer coverage usually ends, which triggers an 8-month Special Enrollment Period to sign up for Medicare Part B without penalty. Some employers offer retiree coverage or an HRA that works alongside Medicare.
An MPRA is an employer arrangement, generally for small employers with fewer than 20 employees, that reimburses Medicare-enrolled employees, tax-free, for their Medicare Part B, Part D, and Medigap premiums.