The BASE® Excepted Benefit Health Reimbursement Arrangement (EBHRA) allows employers of all sizes to use tax free dollars to reimburse certain benefits. Employers must offer group health insurance, but employees don’t have to be enrolled in the group health plan to benefit from the EBHRA.
This HRA provides the option for employers to reimburse employees for out-of-pocket medical expenses and non-insured medical expenses, such as copays, deductibles, prescriptions, dental and vision insurance premiums, COBRA continuation coverage, and short-term limited duration insurance premiums.
The EBHRA will integrate with the employee's current health insurance plan, and will provide businesses with an opportunity to further expand benefit options for employees.
Benefit to Employer:
Ability to Expand Benefits Package.
The HRA is an additional way to maximize savings and tax benefits for a business and their employees.
All reimbursements are 100% deductible as a business expense.
Peace of Mind.
Legal and administrative procedures are handled by BASE®.
Benefit to Employee:
Increased Benefit Savings.
Employees now have an additional $1,800 to put towards their medical expenses.
This plan provides an option when it comes to paying for out-of-pocket medical costs, including health insurance premiums. Guidelines for qualifying for this type of plan include the following, but be sure to contact BASE® with any questions regarding eligibility.
Excepted Benefit HRA Savings
The Excepted Benefit HRA provides
- This benefit provides a way to maximize tax benefits for a business and their employees, while expanding benefit packages
- All reimbursements are 100% deductible as a business expense for the employer
- Employees now have an additional $1,800 tax-free to apply towards their elected benefits
Frequently Asked Questions
This benefit is for employers offering traditional group health insurance as a means of providing an additional benefit. Employees do not have to be enrolled in the traditional group health plan, and provides tax free means of paying for COBRA, Short Term Limited Duration Insurance, and Excepted Benefit Insurance and/or IRC Section 213(d) medical expenses.
The EBHRA does not allow for reimbursing individual health insurance coverage, group health insurance coverage, and Medicare part A, B, C and D.