WASHINGTON (CN) - Employers may not offer incentives to TRICARE-eligible employees to not enroll or to terminate enrollment in an employer-offered Group Health Plan that would be primary to TRICARE, according to a Defense Department rule.
The rule, implementing a part of the John Warner National Defense Authorization Act, is effective June 18.
Benefits offered through cafeteria plans that comport with Section 125 of the Internal Revenue Code are permissible as long as the plan treats all similarly situated employees eligible for benefits the same and does not illegally take TRICARE eligibility into account.
TRICARE supplemental insurance plans, because they are limited to TRICARE beneficiaries exclusively, are generally impermissible. Properly documented non-employer contributed TRICARE supplemental plans, however, are allowed.
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