BASE^® Blog

Team HRA is looking good going into the 2020 season.  With 2 NEW additions to the lineup, small businesses will have the options to control their business’ budget while being able to offer a formal benefit to their employees.

A Health Reimbursement Arrangement (HRA) is a tool for small business owners to increase their tax savings and to offer tax-free health benefits.  An HRA may reimburse for qualified medical expenses such as co-pays, deductibles, and health insurance premiums.

Health Reimbursement Arrangements have always been a great teammate for businesses that have struggled defending off the rising cost in health care, bringing into play group health insurance, and scoring the benefits package their employees deserve at a low cost.  As access to better benefit packages expands, more and more businesses can consider HRAs as a viable option.

After the Affordable Care Act (ACA), the HRAs have reentered the health care arena as a serious team player for small businesses.  At this point in the season, it is a great time to look forward to what’s in store for 2020.

Health Reimbursement Arrangements (HRAs) are available in 2020 -

• The BASE® Section 105 HRA is available for small business owners to deduct up-to 100% of health care costs including individual insurance premiums and qualified out-of-pocket medical expenses. It was designed to assist with health care expenses and provide clients, on average, over $5,000 in savings. 
• The BASE® Integrated HRA is available for employers with a group health insurance plan in place looking to reduce the overall cost of insurance coverage. It gives employers the flexibility to help their employees pay for medical expenses not covered by health insurance, further enhancing and expanding the benefit plan.  The Integrated HRA has been proven to reduce a client’s health insurance premium increases by 10-50%.        
• The BASE® Qualified Small Employer HRA is available to help employers offer their employees a more attractive benefits package without providing a group health plan. Employees secure their own medical insurance on or off the Marketplace.  Employers help their employees pay for qualified medical coverage, tax-free, such as insurance premiums, co-pays, deductibles, eye care, dental care, or any other qualified health care expense.

Adding to the already great HRA lineup…

• The BASE® Individual Coverage HRA is available to employers looking to provide an alternative when it comes to providing health benefits. It allows employers the opportunity to reimburse their employees for their individually purchased insurance.  This type of plan provides health benefits to better fit the needs of many businesses and can help to cut costs without reducing value when it comes to providing those health benefits to employees. 
• The BASE® Excepted Benefit HRA is available to employers of all sizes to use tax-free dollars to reimburse employee out-of-pocket medical expenses and non-insured medical expenses, such as copays, deductibles, prescriptions, dental and vision insurance premiums, COBRA, and short-term limited duration insurance premiums. This tax-savings plan is available to employers who offer group health insurance, but employees do not have to be enrolled to participate.  The EBHRA expands the employer’s benefit package and gives employees an additional $1,800 tax-free to apply towards their qualifying elected benefits.

So what can we expect for 2020?  The HRA will still be a great option for businesses committed to providing health benefits to their employees while looking to control health care costs.  With 3 strong BASE® HRAs on the roster, and two NEW HRAs entering the lineup, 2020 is setting up to help thousands of businesses.  Call BASE® at 888.386.9680 to get started TODAY! 

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