Health Reimbursement Arrangements (HRAs) have become an essential employee benefit in recent years, continually evolving and helping employers and employees save valuable tax dollars each year. In just the past three years, three of the most popular HRAs have been rolled out – Qualified Small Employer HRA (QSEHRA), Individual Coverage HRA (ICHRA), and the Excepted Benefit HRA (EBHRA).
One of the newest, the BASE® Excepted Benefit Health Reimbursement Arrangement (EBHRA) was signed into law for January 1, 2020. It is for employers of all sizes to reimburse their employees for certain medical expenses not covered by their group health plan. While an employer must offer group health insurance, employees are not required to enroll in the group health plan, to benefit from this HRA.
The EBHRA can help boost an employer’s current benefits plan by providing their employees with an additional tax-free $1,800 per plan year for out-of-pocket medical expenses and non-insured medical expenses. The EBHRA can reimburse copays, deductibles, prescriptions, dental and vision insurance premiums, COBRA continuation coverage, and short-term limited duration insurance premiums.
Just like other HRAs, both the employer and employee will benefit. The EBHRA provides employers with the opportunity to further expand their benefit options, more options in designing the health care coverage that works best for the business, and saving valuable tax dollars. The employee has more choices to choose from to fit their health care needs and have an additional $1,800 to put towards their health care expenses.
For more information on how to boost a business’ current benefits plan with the Excepted Benefit Health Reimbursement Arrangement, call BASE® at 888-386-9680 or visit www.BASEonline.com.