Companies with fewer than 20 employees that offer group health coverage that pays secondary to Medicare (those not subject to the MSP rules)
may be able to pay for the Medicare Part B, Part D, and Medicare
Supplement Insurance premiums for their active employees.
This is known as a Medicare Premium Reimbursement Arrangement.

However, this is not an option for companies with 20 or more workers
that are subject to the Medicare Secondary Payer provisions. All
companies, regardless of size, can pay the health insurance or
Medicare premiums for their retired employees, but no company can pay
for individual health insurance coverage for their active employees .

Our best practice: A company with under 20 employees can provide a Medicare group plan for its active Medicare eligible employees or permit them to go out to the market with the help of an experience, licensed broker.

For details, please review Item #3 in this IRS publication:

As always please reach out to us at Total Benefit Solutions, Inc (215)355-2121 with any questions or concerns about Medicare health insurance, enrollment guidelines or choices.