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Both the Individual Coverage HRA (ICHRA) and Qualified Small Employer HRA (QSEHRA) will help employees choose a health plan that is right for them, rather than the burden of choosing the one-size-fits-all traditional group health plans.  Even though both HRAs will help employers offer their employees’ health benefits, there are differences between the two. 

In 2017, small businesses were optimistic when the QSEHRA came into law.  There was now an affordable health coverage option for small employee groups, with less than 50 employees and maximum contribution caps, that helped employees pay for their qualified health care coverage.  Employees had the ability to secure their own health insurance on or off the Marketplace and the QSEHRA was quickly adopted by thousands of small employers. 

In 2020, the HRA lineup expanded with the addition of the ICHRA.  The ICHRA was opened to businesses of any size with no maximum contribution caps that provided employers with a way to help employees pay for their individual health insurance premiums.  It helped streamline benefit options and cut costs without reducing value to the health benefits offered and brought more options and savings to both employers and employees. 

Check out the comparison chart below.

Both the QSEHRA and the ICHRA are designed for employers looking for an affordable and personalized way to provide a health benefits package to their employees.  Both HRAs are a valuable benefit, with unique differences, that can help retain and recruit valuable employees. 

Contact BASE® for more information at 888.386.9680 or visit www.BASEonline.com to learn more about these HRAs and a variety of other benefit options available to assist in making health care more affordable. 

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Health benefits are continuing to be important and a big deal in the employment world.  According to a 2020 survey by HR consultancy, Willis Towers Watson, 37% of employees would rather receive more substantial benefits than additional salaries or bonuses.  So, it is also more important than ever to utilize a third-party administrator (TPA) that you know and trust to manage these health benefit plans and keep it in compliance.  But how would a business’ benefits plan benefit from using a TPA?

A third-party administrator (TPA) is a professional organization that manages employee group health and welfare benefit plans on behalf of an employer. 

BASE®, an industry leader in offering and maintaining a variety of employee benefit plans, can help attract and retain valuable employees while keeping the employers’ cost of health care affordable and in compliance with federal and state regulations. 

Benefits of utilizing a TPA, like BASE®, for employee benefits:

Custom Health Benefits Plan. 

No business is structured the same, so why should every business have the same cookie cutter employee benefit package? 

BASE® will customize plan designs to fit the way a business is structured and benefit both the employer and employee, maximizing health care savings.  Not only does BASE® offer a variety of money saving health care benefits and provide employers with compliance solutions. 

Claims Reimbursement Made Easy. 

No one wants to have to organize receipts, fill out forms by hand, submit paperwork into HR, and wait to get reimbursed, so why should the process be so time-consuming?

BASE® has an online portal, a Benefits Mobile App, and debit card option where employees can pay for and submit claims electronically, pay for their health care expenses in real time and get reimbursed faster and easier. 

Personalized Customer Service.

Every business has their own customized health benefits plan, so why should they receive the same, read from a script customer service rep?

BASE® has a benefits team comprised of support specialists, group account managers, and sales representatives that are experts in their field, providing the upmost professional customer service. 

With increasing interest in expanding employee benefits packages on the rise, so is the need for a TPA as a trusted advisor and to help administer a variety of plans, provide multi-account coordination, and keep them in compliance.  Contact BASE® at 888.386.9680 or visit www.BASEonline.com to explore how employers across the country are expanding their benefit packages with the help of BASE®!

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With all the craziness and unpredictably of the past couple of years, there is one thing that is still looking strong heading into 2022.  Health Reimbursement Arrangements. 

A Health Reimbursement Arrangement (HRA) is a tool for business owners to increase their tax savings and provide employees with health benefits.  With five different HRAs to choose from, there is an HRA for all business types whether they offer a group health insurance plan, or their employees are responsible for individual health coverage.  Each one helps businesses fend off the rising cost in of health care and provide a more affordable benefits package for their employees. 

According to a Kaiser Family Foundation survey, about 59 percent of employers offer health benefits.  Other employers are unable to afford the cost of group coverage but would like to offer benefits to remain competitive in a tight labor market.  The HRA offers options to virtually every type of employer to offer some form of benefit option in the form of an HRA.  Looking ahead to 2022, BASE® has seen an increase in the number of employers interested in reimbursing employees for individual health insurance coverage with an ICHRA, while also seeing larger employers that are interested in reducing the cost of premiums by implementing an Integrated HRA.  Big or small, there is an IRS-approved HRA to expand benefits for business owners in 2022:

Section 105 HRA

The Section 105 HRA allows for small business owners, who can legitimately hire their spouse, deduct up-to 100% of health care costs, including individual health insurance premiums and qualified out-of-pocket health care expenses as a business expense.  This HRA is for employers classified as a Sole Proprietor, Partnership, C Corp, or S Corp. 

The business owner saves an average of over $5,900 annually in tax savings, helping to reduce the high cost of health care expenses. 

Integrated HRA

The Integrated HRA allows for businesses to couple with a high-deductible health plan to suppress the yearly increases in health care costs.  This HRA is for a business with a group health plan, looking to lower the cost of health insurance premiums, keeping their employees’ coverage the same, and supplementing their deductible costs. 

The employers can reduce the group health insurance premiums by 10-50%, reducing the overall cost of the insured plan. 

Qualified Small Employer HRA (QSEHRA)

The QSEHRA allows small businesses, who do not offer a group health plan, to reimburse employees for their health insurance premiums and health care expenses or just health insurance premiums.  This HRA is for businesses with less than 50 full-time employees who maintain minimum essential coverage (MEC). 

The employers can help their employees pay for their health care coverage, tax-free, with allowance caps, giving more control over the health care costs. 

Individual Coverage HRA (ICHRA)

The ICHRA allows employers to reimburse employees, separated into specific classes for qualified insurance premiums or insurance premiums and out-of-pocket health care expenses.  This HRA is available to any sized business looking to streamline benefits and cut costs without reducing value to their employees’ health benefits. 

The employers can choose the contribution level that works for their budget and save money by not providing a traditional group health plan to all employees. 

Excepted Benefits HRA (EBHRA)

The EBHRA allows employers to reimburse employees an additional $1,800 for premiums paid towards excepted benefits not included in the traditional group health plan.  This HRA is available to businesses with a group health insurance plan in place, but the employees do not have to participate in the group health plan to participate in the EBHRA. 

The employers can maximize savings and tax benefits and expand their health benefits package. 

So, what can we expect for 2022?  The HRA will still be a great option for businesses committed to providing health benefits to their employees while controlling health care costs.  With 5 strong HRAs available, 2022 will set up businesses to save thousands of dollars in tax savings, help their employees pay for health care costs, and provide a great benefits package.  For more information, contact BASE® at 888.386.9680.

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