BASE^® Blog

Finding ways to reduce costs in any business is hard.  Finding ways to reduce the cost of health care is an even bigger challenge.  Health insurance is one of the most important things an employee considers when looking for a new job – a job that offers a benefits package that can help them take care of their family’s out-of-pocket medical expenses.  But for many great businesses, providing health insurance can be expensive and is not feasible.  Employers are torn between wanting to provide the best so their employees are healthy, but at the same time wanting to save money.

A Health Reimbursement Arrangement is an IRS-approved, employer-funded, tax-advantaged employer health benefit plan that reimburses employees for out-of-pocket medical expenses.

If a business still wants to provide a group health insurance plan, but lower the cost of providing it to their employees, the BASE® Integrated HRA will help save money for both the employee and employer.

Employers can institute a High Deductible Health Plan in conjunction with the BASE® Integrated HRA plan to save money while still offering similar coverage for their employees.  With this, a company would:

• Increase the annual deductible on the existing group policy which will lower the company’s monthly premium cost by up to 50%
• Give each employee a tax-free HRA where employees would use the funds to cover all expenses they incur
• Save up to 30% with no change in the employee health benefits

If a business still wants to provide some type of health benefits, but a group health insurance plan is not an option, the BASE® Qualified Small Employer HRA is another low-cost alternative.  With the BASE® QSE HRA, the employer can set different benefit limits for single employees versus married up to the annual maximum established by the IRS, while the employees secure their own medical insurance either on or off the Marketplace.  The employees will then be able to pay for their medical coverage for themselves and their families, tax free, and use the money for insurance premiums, copays, deductibles, eye care, dental care, or other qualified health care expenses.

If the employer is currently paying for their employees’ health insurance premiums informally, such payments will need to be reported on their taxes as taxable income to the employees.  By setting up an HRA, employees receive their dollars 100% tax-free and employers can deduct reimbursements as a non-taxable business expense.  BASE® will work with the employer to make sure the business is providing the best, saving the most, and staying compliant.

Whichever HRA plan a business chooses, they will provide their employees with an attractive benefits package to help pay for out-of-pocket medical expenses and will save the business thousands of dollars every year.  Start cutting health care costs  and call BASE® at 1-888-386-9680 today! 

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