Can Churches Assist with Medicare Premiums for Eligible Employees?

It is estimated that almost 64 million citizens were enrolled in Medicare in October of 2021, according to the Centers for Medicare & Medicaid Services, and many still remain in the workforce. With an aging workforce staying in the marketplace longer than past years, churches are facing—or will face—the question of how to handle health insurance coverage for employees reaching Medicare eligibility. Upon reaching Medicare eligibility, a person’s health coverage becomes a maze of options for both the employer and the employee.

Churches often desire to encourage an employee to leave a group health-care plan and enroll in Medicare to take advantage of cost savings. Many times, the employee also desires this path because it is less expensive than his or her portion of the cost of the church’s group health-care plan. When discussing Medicare as a health-care option, ...