BASE^® Blog

Year after year, health care costs are on the rise and finding ways to cover those expenses can be challenging.  Yet, health insurance remains on top of the list for the most sought-after benefit by employees.  As an employer who wants to attract and retain talented employees, looking for ways to offer employees the health benefits they deserve without breaking your budget can be difficult.   

According to a Quest Diagnostics Report, more than three-quarters (77%) of employers say they want to lower health care benefit costs for their employees but don’t have the tools to do so. 

One option:  The ICHRA.  Find out what it is, how it works, the benefits, and the next steps in implementing it into the business. 

What is it?

The Individual Coverage Health Reimbursement Arrangement (ICHRA) gives employers of any size the ability to reimburse their employees for their qualified individual insurance premiums or insurance premiums and non-insured health care expenses.  Employers can choose to offer to all employees, or to specific classes, with no contribution caps, to fit any budget. 

The BASE® ICHRA is an IRS-approved tax savings plan that allows employers to offer a more personalized health benefit.   Employers can set a budget and create some predictability when it comes to health benefits, while providing a medical benefit without paying group benefit rates.

How does it work?

An employer designs the ICHRA for their business, establishing what is allowed for reimbursement and setting the contribution limits.  Once the ICHRA has been designed, classes established, and contribution limits set, employees can pick any individual health plan that fits their needs.  When the employee has a qualified health care expense, they can request reimbursement by submitting their receipts. 

The benefits?

The ICHRA provides a new level of flexibility to the employer and employee.  Employers can choose the level they want to contribute to the employees, as little or as much, as their budget allows, with employees choosing their individual health coverage that best fits their needs.  The ICHRA helps both the employers and employees save money each month.  Employers do not have to pay to provide a traditional group health plan to any or all employees, and employees have the additional money to help pay for their eligible expenses.  ICHRA reimbursements are tax-deductible for employers and employees receive their reimbursements tax-free. 

Next steps?

The employer calls and talks to a BASE® representative to see if the ICHRA is right for the business.  Whether a business has 15, 50, or 200 employees, an employer can leverage the cost savings and flexibility the ICHRA offers.

The ICHRA is a flexible cost-effective alternative to traditional group health benefits.  For more information on the BASE® Individual Coverage HRA, contact BASE® at 888.386.9680 or visit www.BASEonline.com.

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Lifestyle Spending Accounts (LSAs) have been around for the past 5-6 years but have recently caught the attention of employers because of the flexibility LSAs offer.  Lifestyle Spending Accounts allow for both the employer and employee to “have it your way.”

The Lifestyle Spending Account (LSA) allows employers to customize a post-tax spending account to help their employees pay for eligible products and services that promote healthy habits and the overall well-being of their employees. 

The BASE® LSA is available to all businesses who want to help their employees pay for eligible expenses that promote physical, financial, and emotional well-being that are not covered by insurance.

Because of the flexibility of the Lifestyle Spending Account (LSA), one of the major benefits is that there is no “typical” design.  The design comes down to exactly what the employer wants – they can have it their way.  The list of eligible expenses is determined by the employer, so the list can be very narrow or very broad.  One option is the employer can decide to give employees one lump sum to use towards all categories - physical, financial, and emotional – and pay for the eligible expenses that they need.  Another option is the employer can choose to break out the categories, provide certain categories with a certain amount of reimbursement, allowing the employees to still pay for their eligible expenses.    

Each LSA can have its own plan design, employee eligibility, dollar amounts, as well as funding and reimbursement criteria.  Lifestyle Spending Accounts enable companies to give their employees an incentive without making a permanent commitment such as a raise, helping employees pay for their physical, financial, and emotional needs.  The LSA also allows for a simple way to increase benefit options to help attract and retain good employees. 

When a business wants to implement an LSA into the business, how it is designed is totally up to them and their bottom line.  Just like Burger King, the employer can “have it your way” and BASE® is here to help. 

For more information on the BASE® Lifestyle Spending Account (LSA), contact BASE® at 888.386.9680 or visit www.BASEonline.com.

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