Yes, employees enrolled in TRICARE can participate in a QSEHRA and may receive tax-free reimbursements as long as they maintain Minimum Essential Coverage (MEC) and submit valid proof of that coverage.
Can TRICARE be used with a QSEHRA?
TRICARE generally qualifies as Minimum Essential Coverage (MEC)
TRICARE is a federal health insurance program for military members, retirees, and their dependents. It is considered Minimum Essential Coverage (MEC) under ACA rules.
Because QSEHRA requires MEC:
Employees enrolled in TRICARE can participate in a QSEHRA
Employees may be eligible for tax-free reimbursements
What employees must have to qualify
TRICARE alone is not enough—proof is required
To receive reimbursements under a QSEHRA, employees must:
Be enrolled in TRICARE or another MEC-qualified plan
Submit proof of coverage (such as TRICARE documentation or ID card)
Maintain continuous MEC coverage during the reimbursement period
Without proof of coverage:
❌ Reimbursements cannot be issued tax-free
❌ Claims may be denied or delayed
What can be reimbursed if you have TRICARE
QSEHRA can reimburse eligible out-of-pocket medical costs
If you are enrolled in TRICARE and meet MEC requirements, your employer may reimburse:
Copays and coinsurance
Deductibles
Prescription drug costs
Eligible medical expenses under IRS Section 213(d)
In some cases, supplemental in