BASE® Blog

How Clients Can Save More on Health Care

August 27, 2018 (0)

With the escalating cost of health care, employers are exploring different ways to manage those costs in providing health care benefits whether they are self-employed or a business owner with multiple employees.   Instead of cutting costs elsewhere, implementing a BASE® Health Reimbursement Arrangement (HRA) could save business owners thousands a year in tax savings.  BASE® offers a complete line of benefits that offer money saving and compliance solutions for businesses of all sizes.

A Health Reimbursement Arrangement is an IRS-approved, employer-funded, tax-advantaged employer health benefit plan that reimburses employees for their out-of-pocket medical expenses.  By implementing an HRA into a business, it will help cut costs and make health care affordable, while giving the employees more freedom in their personal health care decisions.  An HRA not only saves the employee money, but the employer as well!

BASE® offers 3 types of HRAs to help businesses save money:  Section 105 HRA, Integrated HRA, and QSE HRA.

BASE® Section 105 HRA

  • 1 employee participant
  • On average, $4,700 in tax savings
  • Reduces the financial impact of health care expenses

BASE® Integrated HRA

  • Any number of employees
  • Available for employers with a group health insurance plan looking to reduce the overall costs of insurance coverage
  • Coupled with group health insurance plan, employees pay for medical expenses not covered by the health insurance

BASE® QSE HRA

  • 2-49 employees
  • Helps employers offer a more attractive benefits package when group health insurance is no longer an option
  • Employees have the ability to secure their own medical insurance and pay for insurance premiums, copays, deductibles, eye and dental care, and other qualified health care expenses

These plans are made to benefit different types of business structures, but share the same end-goal – to save the employers and their employees money.  It allows employers to deduct up-to 100% of the reimbursements as a business expense and keep the plan in full compliance with all current laws and insurance regulations with the necessary plan documents.  HRAs give employers more control of the overall cost of their benefits plan, and help to reduce the financial impact for employees when paying for out-of-pocket medical expenses.

Every cent a business and employee spends, COUNTS.  Whether self-employed, a company with a group health plan or a business without insurance, BASE® can help implement a custom HRA plan to help save on health care costs.

For more in-depth information about each type of HRA, please call BASE® at 1-888-386-9680 or visit www.BASEonline.com.

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