BASE^® Blog

In today's competitive job market, offering attractive benefits is crucial for employers aiming to attract and retain top talent. One such benefit that has gained popularity is the Health Savings Account (HSA). Here are the top three benefits for employers implementing an HSA:

1. Lower Insurance Premiums

HSAs are paired with High-Deductible Health Plans (HDHPs), which typically have lower monthly premiums compared to traditional health plans. By offering an HSA, employers can save on health insurance costs while still providing valuable healthcare coverage to employees. This cost-saving measure can significantly reduce the overall expenses associated with employee health benefits.

2. Tax Advantages

HSAs offer triple tax benefits that are advantageous for both employees and employers. Contributions made to HSAs are pre-tax, reducing the taxable income for employees and lowering payroll taxes for employers. Additionally, employers do not have to pay federal income tax, Social Security, or Medicare taxes on these contributions. This can result in substantial tax savings for the company.

3. Increased Employee Satisfaction

Offering an HSA can boost employee satisfaction and morale. HSAs provide employees with a flexible and effective way to manage their healthcare expenses, which can lead to greater financial security and peace of mind. When employees feel supported and valued through comprehensive benefits, they are more likely to be engaged and productive, contributing positively to the workplace environment.

BASE® offers HSAs to employers across the country that have certainly benefited by implementing this plan. Often, we see employers looking for benefit strategies to reduce costs without compromising on the quality of healthcare coverage. 

Consider an employer grappling with annual premium hikes of 8-15% on their traditional group health plans. By transitioning to a High-Deductible Health Plan (HDHP) and coupling it with a Health Savings Account (HSA), the employer could potentially reduce costs by over 30% compared to the traditional group health plan.

Employers can successfully implement the BASE® HSA to manage healthcare costs and enhance employee benefits. Learn more about the BASE® HSA and the unique features and benefits that cater to the needs of both employers and employees by contacting BASE® today.

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The Individual Coverage HRA (ICHRA) is revolutionizing the way employers manage healthcare benefits. Unlike traditional one-size-fits-all group health insurance plans, ICHRAs promote cost equity and help lower overall healthcare expenses.

What Makes ICHRA Unique?

The ICHRA allows employers to classify employees into different groups, offering tailored reimbursement amounts to each class. This flexibility is a game-changer for businesses looking to provide equitable benefits. The IRS, DOL, and HHS have established eleven allowable classes:

1. Full-time employees
2. Part-time employees
3. Seasonal employees
4. Employees covered by a collective bargaining agreement
5. Employees in a waiting period
6. Foreign employees working abroad
7. Employees in different geographic locations (based on rating areas)
8. Salaried employees
9. Hourly employees
10. Temporary employees from staffing firms
11. Non-resident aliens with no US-based income

Common ICHRA Classifications

Many employers utilize the following classifications:

Part-Time & Full-Time Employees

Employers can offer scaled benefits to both full-time and part-time workers, moving away from the all-or-nothing approach of traditional group plans. This strategy helps attract and retain valuable talent.

Example:
A restaurant with both part-time and full-time staff opts for an ICHRA instead of a group health insurance plan. This allows the restaurant to create separate benefit levels for full-time and part-time employees, adjusting reimbursement contributions based on hours worked. Full-time employees receive higher monthly reimbursements than part-time employees, enabling them to choose individual coverage that fits their needs.

Multiple Geographic Locations

Companies with employees in various regions can adjust reimbursement amounts based on local health insurance costs, ensuring equitable benefits regardless of location.

Example:
A clothing retailer with stores in multiple cities, each with different living costs, uses ICHRA to tailor benefits. The ICHRA allows the retailer to offer higher reimbursements to employees in expensive areas with high-cost insurance markets, while providing suitable reimbursement amounts for employees in less expensive regions.

Why ICHRA Matters Now

In times of high inflation and growing concerns about benefits, the BASE® ICHRA offers a flexible solution to the one-size-fits-all dilemma. Classifications allow employers to really customize their benefits without having to worry about minimum class sizes, while providing a more adaptable benefit strategy that meets diverse employee needs. BASE can help clients use various classes to design a plan customized to their needs and budgets, so reach out today with questions at 1-888-386-9680.

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Health insurance premiums are one of the biggest pressures businesses face, according to the JPMorganChase Institute. With healthcare costs rising each year, employers are constantly seeking new insurance products that balance cost and quality—a challenging task. BASE® works with clients daily to offer a variety of Health Reimbursement Arrangement (HRA) options that help ease this burden and fit their business structure, budget, and health insurance needs.

For employers without employees, the BASE® Section 105 HRA allows small business owners to deduct up to 100% of healthcare costs, including health insurance premiums and qualified out-of-pocket expenses, as a business deduction. This HRA is ideal for self-employed individuals who can hire their spouse and classify as a Sole Proprietor, Partnership, C Corp, or S Corp.

For employers with employees but no group health plan, BASE® offers the Qualified Small Employer HRA (QSEHRA) and the Individual Coverage HRA (ICHRA). The QSEHRA allows small business owners to reimburse employees for qualified health insurance premiums or healthcare expenses, suitable for employers with fifty or fewer full-time employees and no group health plan. The ICHRA enables employers of all sizes to reimburse employees for qualified insurance premiums and/or non-insured healthcare expenses, providing flexibility to offer benefits to all employees or specific classes.

For employers with a group health plan, the BASE® Integrated HRA helps lower health insurance premiums while maintaining employee coverage. This HRA is designed for employers looking to reduce the cost of their group health plan and supplement employees’ deductible costs.

As health insurance premiums continue to rise, BASE® is dedicated to helping employers succeed by offering creative, money-saving benefit strategies and compliance solutions. To learn more about HRAs, contact BASE® at 888.386.9680 or visit www.BASEonline.com.

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