The BASE® Individual Coverage HRA (ICHRA) allows employers the opportunity to increase flexibility and employee choice by designing a reimbursement plan for their employees individually purchased insurance.
The ICHRA will integrate with individual health insurance to provide business owners with a great alternative when it comes to providing health benefits. This type of plan provides a health benefit to better fit the needs of many businesses. Overall the BASE® ICHRA helps to streamline benefit options and cut costs without reducing value when it comes to health benefits for employees.
Benefit to Employer:
No Size Restrictions.
Available to employers of any size.
Attract and retain talented employees with an increased benefits package.
All reimbursements are 100% deductible as a business expense.
Controlled Funding Limits.
Employer has the freedom to choose the level of reimbursement.
Saving money by not having to provide a traditional health care plan to any or all employees.
Peace of Mind.
Plan administration is handled by BASE®.
Benefit to Employee:
Employees now have additional money to help with the rising cost of healthcare.
All reimbursements are non-taxable.
Easy way to get reimbursed for health care expenses.
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.
Individual Coverage HRA Savings
The Individual Coverage HRA allows employers to provide employees and their families with tax-preferred funds to pay for qualified premiums and/or non-insured medical expenses, essentially providing another option for financing employee health insurance expenses.
- All reimbursements are 100% deductible as a business expense for the employer and non-taxable for the employee.
- The employer has the freedom to choose the level of reimbursement.
- The employees have additional money to help with the continuous rise in health care.
Frequently Asked Questions
Many employers look to the ICHRA for more flexibility in plan design for eligibility criteria. This plan allows employers the ability to choose to offer to all employees, or only to one or more specific classes. Plus, there are no contribution caps, which means higher benefit limits.
The plan sponsor of the ICHRA will determine what class of employees are eligible, and select from permitted classes including: