Section III: BASE® Integrated HRA

Chapter 3: Where do the savings come from?

When you've finished reading, click below to take our quiz!


Take Quiz #3

The BASE® Integrated HRA allows employers with a group health insurance plan in place to be in charge of how company health care dollars are spent. Most importantly, the employer is able to accomplish this without putting additional financial burden on their employees. The BASE® Integrated HRA essentially allows employees to pay for co-pays, deductibles, eye care, dental care, and much more with tax-free benefit dollars.

There are various plan designs available. Employers identify what will be considered a qualifying expense funded by the HRA plan at the time it is established. Employees know in advance how much will be available for reimbursement of qualified medical expenses. In the end, not only will reimbursements help employees minimize out-of-pocket expenses, but it is not considered taxable.

The Integrated HRA does NOT need to be funded prior to incurring the expenses. Instead, the employer reimburses eligible expenses once they have actually been incurred, following enrollment into the plan. Without having to directly fund the account, this does not tie up funds that the employer could be utilizing elsewhere.

BASE® Integrated HRA Savings

  • Employer purchases a high deductible plan reducing premium
  • Employee deductible remains low
  • When the employee satisfies their deductible the employer pays up to the insured deductible with the premium savings
  • All employer contributions are deductible to the employer and non-taxable to the employee

Typically the average BASE® client experiences an 11% employee utilization on their BASE® Integrated HRA. An employer may establish this type of arrangement for their employees, but it is up to the employees as to how to make the best use of the plan. The Integrated HRA allows the end user to take greater responsibility for their healthcare and to save money.