BASE® Choice Incentive Plan
Overview
NOTICE – DOL Regulations Impact Choice Incentive Plan
New regulations were released by the Department of Labor on November 6, 2014, which impacts the BASE® Choice Incentive Plan and makes it a group health plan. Please be advised that while the latest guidance contradicts the previous guidance in DOL Technical Release 2013-03 and IRS Notice 2013-54 allowing this type of reimbursement plan, BASE® will be forced to discontinue this plan immediately in light of the latest Affordable Care Act regulations.
Please call 1-800-309-8012 for more information regarding this compliance update.
With the help of the BASE® Choice Incentive Plan, business owners can legally help employees with individual insurance costs, including health insurance premiums (on or off Exchange), supplemental insurance premiums (all types including disability), and life insurance (Term, Whole, Universal). Employers simply provide a monthly taxable allowance to employees for purchasing their own individual insurance policies.
The BASE® Choice Incentive Plan introduces employers to a defined benefit option that will allow them to stick to a budget with no minimum employer contributions required. For years many business owners have been providing employees with this type of employer payment plan, without a formalized and written plan in place.
The Choice Incentive Plan allows employers to establish how much they are willing to reimburse on a post-tax basis. This taxable benefit also allows employers to establish who they would like to extend this allowance to and what type of policies they are willing to reimburse. With a predetermined allowance available, employees can choose a plan that best fits their needs and budget. The Choice Incentive Plan does exactly what the name claims, and provides choice to employees and allows employers to provide an incentive plan that separates wages from benefit dollars with easy administrative tools.
This type of payment plan is more cost effective than giving all employees a pay increase, since only employees who purchase their own qualifying insurance policies can be reimbursed up to their monthly limit. Plus, the employer can still deduct any and all payments made to each eligible employee as wages.
BASE® has established a product that will provide business owners with the following:- No claims/paperwork hassle for employer or HR
- Online balance and claims tracking for employer and employee
- Man power to review and approve claims up to the specified limits per employee
- Provides reporting to employer with reimbursement amount
- Delivers a “Payroll Ready” form to employer each week
The BASE® Choice Incentive Plan removes the administrative responsibility and hassle. It also introduces employers to a benefit option that will provide them with cost control when it comes to employee benefit spending.