Being able to provide an enhanced benefits package to employees isn’t just pure luck. It takes a few steps, but then the employer is well on their way to saving valuable tax dollars and providing their employees with additional funds to combat the rise in health care.
The Excepted Benefit Health Reimbursement Arrangement (EBHRA) is a cost-effective way that allows employers who offer a group health plan, to reimburse their employees an additional amount of money for premiums paid towards excepted benefits that are not covered by the traditional group health plan. Excepted benefits are COBRA, dental, vision, short-term medical plans, and other qualifying out-of-pocket medical expenses.
The BASE® EBHRA is for businesses of all sizes looking to maximize their tax benefits while expanding the benefits they offer their employees. To enroll, employees must be offered the employer-sponsored group health plan, but do not need to enroll in it to participate in the EBHRA.
How does the EBHRA work? Check out the [lucky] 7 steps below:
- Employer calls BASE® to enroll in the EBHRA
- Offer employees the option to enroll in the employer-sponsored group health plan and the EBHRA
- Employer establishes the reimbursement limit and the list of qualified expenses
- Employees enroll in the EBHRA
- Employees pay for their excepted benefits incurred by them and their dependents up to the maximum limit established by their employer
- Employees submit a request for reimbursement with the required documentation
- Employees receive reimbursement
With the Excepted Benefit HRA, it isn’t just the employer or employees that get “lucky,” they both benefit! An employer has another way to maximize savings and tax benefits with all reimbursements being 100% deductible as a business expense. Employees now have additional money to put towards their health care expenses that are not covered by their health insurance.
For more information on the BASE® EBHRA, contact BASE® at 888.386.9680 or visit www.BASEonline.com.