BASE^® Blog

If a business offers a High Deductible Health Plan (HDHP) to their employees, they have also given their employees a special key to unlock a special benefit – a Health Savings Account (HSA).  This special account has many benefits to both the employer and the employee, offering the most tax breaks of any health benefit option. 

The Health Savings Account (HSA) is like a personal savings account but is designed to help individuals save and pay for the qualified health care expenses.  The employee uses the HSA funds to pay for thousands of eligible items such as copays, over-the-counter medications, dental, vision, and more with tax-free dollars.  The HSA offers excellent tax benefits to help the employee make the most of every health care dollar. 

The BASE® HSA not only allows employees to pay for their health care expenses but allows for the opportunity to save for the future, invest funds to build wealth, and create a powerful tool for a retirement portfolio. 

Listed below are 7 benefits of choosing the HSA:

1. Save on taxes. An employee’s HSA contributions go into the account before taxes.  Therefore, by putting money into the HSA it can lower the taxable income, helping an employee pay less in taxes.
2. Save on medical expenses. Using HSA funds for coinsurance, copays, deductibles, and other out-of-pocket eligible expenses can help you pay for health care costs that are not covered by the High Deductible Health Plan. 
3. Hard-working money. The money put into the HSA works hard by earning tax-free interest, the unused funds at the end of the plan year roll over automatically and the employee has the option to spend the HSA dollars on eligible health care expenses or save and invest for the future. 
4. Triple Tax Savings. Contributions to the HSA are pre-tax, the money grows tax-deferred in the account, and the employee can withdraw it on a tax-free basis, when paying for eligible health care expenses. 
5. The employee gets to decide when and how their money is either spent or saved in their HSA. 
6. Investment opportunities. An employee can invest a portion of the HSA balance into mutual funds, stocks, or bonds, depending on a certain account balance. 
7. HSA funds can be saved for retirement.  At the age of 65, an employee can use the funds for any purpose without penalty.  The money taken out to pay for eligible health care expenses will continue to be tax free, along with money taken out for other reasons without paying a penalty. 

With the BASE® HSA, an employee will see all 7 of these benefits listed above, along with knowing there is no risk of losing money if not used in a certain timeframe.  The account will always belong to the individual whether they change jobs or benefits. 

With the BASE® HSA, the employees’ contributions help reduce the payroll taxes, helping the employer save.  Employers can save money on health insurance premiums since HDHP coverage is usually more affordable and continue to build a strong benefits package to help retain and recruit employees. 

Health Savings Accounts will continue to grow in popularity over the next few years, providing employers and employees MORE than just an account to pay for eligible health care expenses and save valuable tax dollars each year. 

For more information on the BASE® Health Savings Account (HSA), contact BASE® at 888.386.9680 or visit www.BASEonline.com.

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In the last 10 years, the average cost of health insurance premiums has risen faster than inflation in the last 5 years – 22% vs. 11%. For businesses that offer a group health plan, adding in a benefit to help offset premiums and employee out-of-pocket costs, is essential.  One way to supplement a business’ group health plan is through the Integrated HRA.

The BASE® Integrated HRA is an IRS-approved tax savings plan for businesses who sponsor group health insurance and are looking to lower the cost of health insurance premiums, helping to supplement their employees’ deductible costs.   The Integrated HRA works with any group health plan, making the HRA portable, to help the business save thousands each year in valuable tax savings and suppress the annual increases most associated with traditional forms of health care.

Implementing the Integrated HRA with BASE®, the employer will be able to couple it with any group health plan that fits best for their business. No matter what group health plan offered, or the group health plan offered in the future, it will work seamlessly with the Integrated HRA.

Here are a few benefits to utilizing the BASE® Integrated HRA:

Plan Design.

The employer gets to choose to raise the deductible, which reduces the overall cost of the plan, self-insure a portion of that deductible to keep the employee’s responsibility of the deductible maintainable, and decide the allotted allowance amount each employee will receive. 

Tax Benefit.

All reimbursements to employees are 100% deductible as a business expense, meaning free of payroll taxes for employers and free of income taxes for employees. 

Protection of Funds.

The employer does not need to prefund an account.  The reimbursements to their employees are made when a qualifying expense has been adjudicated by BASE®. 

Savings.

The Integrated HRA has been proven to reduce health insurance premium increases by 10-50%. 

Recruit and Retain.

A group health plan is one of the most popular ways for employers to offer health benefits to offer (and use to recruit new) employees AND one of the most popular ways to recruit and retain talented employees.  By supplementing the (already attractive) group health plan with the HRA, an employer’s health benefits are more attractive than what other companies are offering. 

Offering the BASE® Integrated HRA is one of the most simple and cost-effective ways to help lower the cost of health insurance premiums while keeping employee coverage the same.  

For more information on the BASE® Integrated HRA, contact BASE® at 888.386.9680 or visit www.BASEonline.com.

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