Finding ways to reduce costs in any business is hard. Finding ways to reduce the cost of health care is an even bigger challenge. Health insurance is one of the most important things an employee considers when looking for a new job – a job that offers a benefits package that can help them take care of their family’s out-of-pocket medical expenses. But for many great businesses, providing health insurance can be expensive and is not feasible. Employers are torn between wanting to provide the best so their employees are healthy, but at the same time wanting to save money.
A Health Reimbursement Arrangement is an IRS-approved, employer-funded, tax-advantaged employer health benefit plan that reimburses employees for out-of-pocket medical expenses.
If a business still wants to provide a group health insurance plan, but lower the cost of providing it to their employees, the BASE® Integrated HRA will help save money for both the employee and employer.
Employers can institute a High Deductible Health Plan in conjunction with the BASE® Integrated HRA plan to save money while still offering similar coverage for their employees. With this, a company would:
- Increase the annual deductible on the existing group policy which will lower the company’s monthly premium cost by up to 50%
- Give each employee a tax-free HRA where employees would use the funds to cover all expenses they incur
- Save up to 30% with no change in the employee health benefits
If a business still wants to provide some type of health benefits, but a group health insurance plan is not an option, the BASE® Qualified Small Employer HRA is another low-cost alternative. With the BASE® QSE HRA, the employer can set different benefit limits for single employees versus married up to the annual maximum established by the IRS, while the employees secure their own medical insurance either on or off the Marketplace. The employees will then be able to pay for their medical coverage for themselves and their families, tax free, and use the money for insurance premiums, copays, deductibles, eye care, dental care, or other qualified health care expenses.
If the employer is currently paying for their employees’ health insurance premiums informally, such payments will need to be reported on their taxes as taxable income to the employees. By setting up an HRA, employees receive their dollars 100% tax-free and employers can deduct reimbursements as a non-taxable business expense. BASE® will work with the employer to make sure the business is providing the best, saving the most, and staying compliant.
Whichever HRA plan a business chooses, they will provide their employees with an attractive benefits package to help pay for out-of-pocket medical expenses and will save the business thousands of dollars every year. Start cutting health care costs and call BASE® at 1-888-386-9680 today!
Small businesses are eligible for several different tax deductions including education, vehicle, equipment, home office, and more. However, more often than not, when it comes to medical expenses, small businesses only take the standard deduction offered on Form 1040 for their self-employed health insurance costs. With BASE®, clients can go above and beyond the standard deduction, and can deduct both their health insurance premiums and qualified out-of-pocket expenses on their business tax return with a Section 105 HRA that fits their business.
The BASE® Section 105 HRA is the perfect fit for small business owners who are looking for a simple, effective solution to help deal with the rising cost of health care. The business owner is able to take advantage of tremendous tax savings by deducting up to 100% of their family’s qualifying medical expenses as a business deduction. The typical HRA can save an average of over $4,700 in taxes annually.
Check out this success story --- Colleen E., a BASE® Section 105 HRA client, believes that if you are a self-employed farmer, business owner, or own a small company looking for ways to save on the cost of out-of-pocket medical expenses and health insurance premiums, BASE® has many HRA options available for you to inquire about. “They have the knowledge to help you get started with the proper option for you. As a self-employed farming team, we highly recommend the Section 105 BASE®HRA to create a means to save on your taxes each year.”
The BASE® Section 105 HRA not only saves valuable tax dollars, but creates the necessary documentation to deduct up to 100% of their family health insurance premiums and non-reimbursed medical expenses as a business expense. “The Section 105 BASE® HRA is the most affordable health reimbursement plan that we have found. The staff has been very friendly and helpful from the very beginning. From the guidance offered the very minute we enrolled in the plan to the necessary documentation, we have felt everything has been very easy to understand,” said Colleen.
Colleen feels strongly about the great fit the Section 105 HRA has been in their small farming operation. “My husband and I feel that the staff is very knowledgeable with answers to any questions, and always keeps us informed of compliance issues that might arise in the age of health care reform. The best part would be the thousands of dollars in additional tax savings each year that wouldn’t be possible without the BASE® HRA in place.” BASE® makes sure that all clients meet the requirements of the IRS, the Department of Labor, and ERISA. Without this plan in place, business owners can deduct only a portion of health care expenses – often less than half of the typical family’s outlay.
Colleen’s story is just one example of how the Section 105 HRA can help small businesses save valuable tax dollars. So whether it’s a “mom and pop” restaurant, a family farm, or any other business, there are HRAs available for all sizes. It is an important and exciting tool in an employer’s overall benefit strategy. It is a compelling, and workable, option for businesses of all sizes. Contact BASE® at 888.386.9680 to learn more about the BASE® Section 105 HRA.
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