BASE® Choice Incentive Plan

FAQ

Frequently Asked Questions about the BASE® Choice Incentive Plan

Why would an employer adopt a BASE® Choice Incentive Plan?

  • BASE® has established a product that will eliminate the administrative hassle of tracking and adjudicating employee health coverage. Essentially providing business owners with all of the administrative tools to legally provide this type of benefit.
  • The plan has built in safeguards to assist employers when it comes to following government rules and regulations, and takes the responsibility off of the employer’s shoulders. The BASE® Choice Incentive Plan is exempt from the requirements of the Affordable Care Act, so the employer’s ongoing compliance responsibility around the obligations to provide health insurance can be lessened as well.
  • This plan introduces employers to a benefit option that will allow them to stick to a budget when it comes to employee benefit spending.

Is it true that an employer can set different incentive levels according to employee class?

  • Executives can receive up to $400 per month
  • Supervisors can receive up to $300 per month
  • Administration can receive up to $200 per month

OR

  • Full-Time Employees can receive up to $400 per month
  • Part-Time Employees can receive up to $200 per month

How does an employer know that employees are actually using this money for health insurance premiums?
BASE® provides employers with authorization forms and all compliant program information to document which of its employees are actually purchasing health insurance coverage. The employee is responsible for enrolling in and paying for their own insurance coverage, as well as submitting evidence of coverage information to BASE® for determination of the employee’s coverage and expense amount. Employers receive a report from BASE for payment of the established incentive maximums provided to those employees who purchase qualifying coverage. However, the amount paid to each employee can be used for any purpose once received.

How often do reimbursements take place?
Employers choose when incentive payments are made, and in what amount to be paid to each employee.

Is this considered a pre-tax benefit plan?
No, the employer makes all payments that are each considered and reported as taxable “wages”.

*The Affordable Care Act may not allow the reimbursement of health insurance premiums based on your business size and plan design. For additional details, please contact a BASE® Benefit Specialist.