A recent Chief Coun­sel Advice memo explains when an employ­er can reim­burse employ­ees on a tax free basis when the cov­er­age is pro­vid­ed by the spouse’s employ­er. It fol­lows com­mon sense – you can only have one tax free event. Thus, if a spouse has cov­er­age with anoth­er employ­er and pays the pre­mi­um on an after tax basis, then the employee’s employ­er may reim­burse the employ­ee for the spouse’s cov­er­age on a tax free basis. There was some doubt about whether a reim­burse­ment was pos­si­ble at all, but this allows it – ONLY where there is a tax­able event on one side, erased by the tax free event on the oth­er. This is also meant to apply to sit­u­a­tions where a Health Reim­burse­ment Account pays for premiums.