BASE^® Blog

BASE® recognizes the public health crisis that the Coronavirus has created in our own backyard and across the globe, which is creating uncertainty in and among businesses.  Many employers and employees are worried about the repercussions of this virus and what it will do for their business and their employee benefits.

According to the National Federation of Independent Business, 76% of small businesses say they are now experiencing the negative impact from the coronavirus pandemic.  The Coronavirus is leading employers into having to make tough choices about how they are running their business for the foreseeable future.  Some of these changes, such as a reduction in hours, layoffs, etc., have consequences to their current benefit plan.

Some of these business changes can include:

• Employees becoming ineligible to receive benefits or
• Employers being required to make drastic changes in the plan setup

For example, prior to the Coronavirus outbreak and the implementation of “social distancing,” an employer serving as a manufacturer had employees working 30 hours per week and had a BASE® QSE HRA in place.  Now that there have been even more restrictions and guidelines put into place limiting businesses to operate at full capacity, this same employer in one of the 50 states hit hardest by the virus, is forced to cut employee hours to 20 per week.  This reduction in hours causes seven participating employees to lose eligibility in their QSE HRA.  This means employees will no longer be able to be reimbursed for out-of-pocket health care costs, including current health insurance premiums.

BASE® has been working with the employer as far as the change in the employee’s status, which has led to no claim reimbursement during the time the hours are to be altered.  The employer believes in setting an example for the equitable treatment of everyone involved in the supply chain of their products, and is keeping the plan in place for the day they can resume supporting employees working 30 hours per week.  At that time, employees will be reactivated and eligible to participate in the QSE HRA again with a prorated benefit.

Here at BASE®, we want to stress how important it is for employers to let us know of any changes, such as business structure, hours employees work, etc., to learn of any implications this might have on the current plan design in place.  We are seeing new examples of how business owners are forced to get creative with their benefit plans to make ends meet, and we are assisting them as to what is going to be the most cost effective situation for their business without losing the tax savings available through our benefit plans.

The virus is constantly evolving, and so are the needs of business owners across the country when it comes to employee benefit plans.  Despite the circumstances, our staff is still hard at work and ready to serve our clients.  If you are a current client, or even a new client looking for options to help cover the cost of healthcare during this volatile time, please reach out to BASE® at 1-888-386-9680.

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As the Coronavirus continues to spread and impact our communities across the country, BASE® stands by our commitment to serve our clients.  Whether it is our internal staff or our clients that rely on the ability to submit claims to us in order to be reimbursed, BASE® remains steadfast in our ability to serve.  In doing so, we want to make sure our staff is safe and able to continue performing their jobs to the best of their ability.  At this time, BASE® is joining many organizations across the country in actively encouraging and accommodating flexible work arrangements out of respect for the health of our employees and their families and to minimize the risk of transmission. 

In taking the appropriate actions to keep our team safe, we will continue to be available and provide the administrative capabilities our clients and partners have grown accustom to over the years. We will continue to operate at the highest level during this time with limited interruptions, and hope that this situation is only temporary.  At the end of the day we hope to see that the pandemic curve flattens and normalcy returns for all – We Are All In This Together!

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As we are all aware of the public health crisis that has surged around the globe and has made its way into the United States, a new virus called the coronavirus is placing its grip on Americans.  This crisis has everyone taking a closer look at their current state of health, and what products they have readily available at home to keep them prepared for this pandemic.

Many people are stocking up on supplies such as food, toilet paper, and health care products to ward off any potential case of getting sick.  Did you know that many health care products are FSA-eligible and can be paid for with pre-tax dollars?  BASE® wants to share the tools and know-how needed to take full advantage of tax-free health care benefits.

A Flexible Spending Account (FSA) allows employers to provide their employees with more options to pay for their out-of-pocket medical spending that are not covered under any insurance plan.  Qualifying out-of-pocket expenses could include anything from copays to prescription drugs and over-the-counter medical supplies.  Many of which can help keep individuals prepared during this public health crisis.

Preparing for viruses is always important.  What are some of the coronavirus preparedness products?  Many of the same products that can help ward off and treat the seasonal flu viruses may be eligible.  In order to be eligible, these preparedness products require a Letter of Medical Necessity (LMN).

Eligible products such as:

• Thermometers
• Respiratory therapy
• Vaporizers
• Nasal decongestants
• Dual hot and cold packs
• First aid kits
• Saline wipes

Not sure if a product is an eligible expense under Code Section 213(d) with an FSA?  Check out HealthShopper!  This website has a complete list of all eligible products that can be purchased with pre-taxed FSA dollars.  With this site, there is no guessing, no uncertainty if expenses are eligible.

It is a responsible choice to be prepared and the pre-tax FSA dollars can help achieve it.   Always consult a doctor if there are any medical questions. 

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