The BASE® Excepted Benefit Health Reimbursement Arrangement (EBHRA) allows employers of all sizes to use tax free dollars to reimburse certain benefits. Employers must offer group health insurance, but employees don’t have to be enrolled in the group health plan to benefit from the EBHRA.

This HRA provides the option for employers to reimburse employees for out-of-pocket medical expenses and non-insured medical expenses, such as copays, deductibles, prescriptions, dental and vision insurance premiums, COBRA continuation coverage, and short-term limited duration insurance premiums.

The EBHRA will integrate with the employee's current health insurance plan, and will provide businesses with an opportunity to further expand benefit options for employees.

Benefit to Employer:

Ability to Expand Benefits Package.
The HRA is an additional way to maximize savings and tax benefits for a business and their employees.

Tax Benefit.
All reimbursements are 100% deductible as a business expense.

Peace of Mind.
Legal and administrative procedures are handled by BASE®.

Benefit to Employee:

Increased Benefit Savings.
Employees now have an additional $1,950 to put towards their medical expenses.

Plan Eligibility

This plan provides an option when it comes to paying for out-of-pocket medical costs, including health insurance premiums. Guidelines for qualifying for this type of plan include the following, but be sure to contact BASE® with any questions regarding eligibility.

  • Plan design does not allow for reimbursing individual coverage, group health coverage, Medicare Parts A, B, C, and D
  • Plan participants must be given a Summary Plan Description and Plan Document as it is subject to ERISA. No additional notice requirements are required
  • Plan must be offered on the same terms and conditions to all eligible employees
  • COBRA continuation rules do apply, as the EBHRA is a group health plan

Excepted Benefit HRA Savings

The Excepted Benefit HRA provides

  • This benefit provides a way to maximize tax benefits for a business and their employees, while expanding benefit packages
  • All reimbursements are 100% deductible as a business expense for the employer
  • Employees now have an additional $1,950 tax-free to apply towards their elected benefits

Frequently Asked Questions

The EBHRA does not allow for reimbursing individual health insurance coverage, group health insurance coverage, and Medicare part A, B, C and D.

Contact Us

Send us your questions or comments by filling out this form and a BASE® representative will call within one business day, or call (888) 386-9680 to speak with a support specialist during our office hours.

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  • Monday - Thursday
    8am to 4:30pm CST
  • Friday
    8am to 12pm CST

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