3 Reasons to Offer an Excepted Benefits HRA

The EBHRA was signed into law in 2020, but it is still so new to so many business owners.  If a business has a group health plan in place, they can take advantage of the newest HRA, the EBHRA

The Excepted Benefit Health Reimbursement Arrangement (EBHRA) integrates with the employer-sponsored group health plan, allowing for employers to contribute up to the annual maximum limit to go towards the reimbursement of an employee’s out-of-pocket health care expenses. 

The BASE® EBHRA is an option for employers, of any size, to help employees pay for their excepted benefits such as copays, deductibles, prescriptions, dental and vision insurance premiums, COBRA, and short-term limited duration insurance premiums. 

3 reasons to offer the Excepted Benefits HRA in the business:

1).  Flexibility and Benefits for Both Employers and Employees.

With the EBHRA, the employees can participate in the EBHRA regardless of their enrollment in the employer-sponsored group health plan.  This provides additional freedom for employees to choose regarding their health insurance and can choose the combination of options that work best for them.

With the EBHRA, the employer gets to determine what expenses can be reimbursed under the EBHRA and what the reimbursement limit is, up to the maximum limit per year.   

2).  Potential Savings for Both Employers and Employees.

An EBHRA can offer businesses a way to predict anticipated costs that align with the employer’s budget, while still offering the employees additional benefits.  So many employees will experience unforeseen health care expenses, having the EBHRA in place is a game-changing benefits solution to help pay for those costs. 

All reimbursements made through the EBHRA are 100% deductible as a business expense to the employer.  With reimbursements tax deductible, and money not used by employees during the plan year to be returned to the employer, there are big savings that can help make the most out of the company’s budget. 

3).  There is Nothing Like it.

That the EBHRA can do is limitless.  Employers of any size can offer the EBHRA and can be combined with more group health insurance plans. 

The EBHRA provides an option when it comes to pay for out-of-pocket health care costs, must be offered on the same terms and conditions to all eligible employees, and can be used to reimburse individual coverage, group health coverage, Medicare parts A, B, C, and D, and more. 

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

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