Summer is quickly coming to an end and fall is fast approaching. This is a good time to take a look at where you can start saving valuable tax dollars! Did you know small business owners can save an average of $4,700 dollars a year with a Section 105 BASE® Health Reimbursement Arrangement (HRA)?
Healthcare costs can be expensive, and many small business owners struggle with the rising costs. The BASE® HRA assists with healthcare expenses and participants have the opportunity to deduct up-to 100% of healthcare costs, including individual insurance premiums and qualifying out-of-pocket medical expenses. This includes prescriptions, vision, dental and much more! This plan lets employers keep their hard earned money in their pocket!
Jerry K., a client since 2005, shares his success with the BASE® HRA. “The BASE® HRA has saved me thousands of dollars over the 16 years I have been involved with the plan, and is an easy method of saving tax dollars. I have always felt the staff was excellent and is always there to answer any questions with effective answers. The plan is straight forward, easy-to-use, and tracking medical expenses is worth the minimal extra effort when the result is a sizable savings,” he says.
The BASE® staff is here to support our clients and answer any questions that may come up! Our goal is to make this plan as easy and as low maintenance as possible, so small business owners can focus on their business and family.
BASE® gets the opportunity to work with thousands of small business owners across the United States, helping them save thousands of dollars each year. Gary M. shared his story of how BASE® helped him save tax dollars with this plan. “The BASE® HRA has saved me money since enrolling in the plan in 2011. Last year I saved around $3,600, which makes tracking expenses worth the time and effort. The BASE® HRA is the only and best way to save tax dollars.”
If you are a small business owner, contact BASE® today to see if you qualify for a BASE® HRA and fall into savings!
H.R. 6199 – “Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018.”
H.R. 6311 – “Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018.”
On Wednesday, July 25, 2018, Health Care bills, H.R. 6199 and H.R. 6311, were adopted by the House of Representatives. These bills could expand tax-advantaged health care accounts, including Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs).
Each bill is designed to do something different, but they have one common goal - to enhance and protect health care for all working individuals and families and strengthen the Affordable Care Act (ACA), making sure it stays true to its original promise of lowering health care costs. These laws would not be considered a repeal of the ACA, but a correction to a few provisions in the ACA.
In 2003, consumers were able to use their HRA and FSA to store up to help pay for their medical expenses. At any time throughout the year, you could purchase a bottle of Tylenol, pay for a doctor visit, and pick up a prescription from the pharmacy with your pre-tax dollars. However, in 2011 a provision in the ACA restricted the use of pre-taxed dollars for over-the-counter (OTC) products. In order to use the tax-advantaged health care accounts, consumers had to have a prescription in order to be reimbursed. This created a barrier for employees from buying medication for their seasonal allergies, taking medicine such as Tylenol for their pain management, etc. (Allow HSA dollars to be used for over-the-counter drugs).
With the passing of these Health Care bills, OTC medications will be eligible to be purchased and sports/fitness expenses will be treated as qualified medical expenses for tax-advantaged health care accounts. The way an individual or family can contribute will change, as well as, including being able to contribute to an HSA if their spouse has an FSA. There will also be the option to carry over FSA balances to the following year up to three times the annual limit.
For more in-depth information on the two Health Care bills, please click here. As these bills make their way around Congress, BASE® will continue to keep you updated!