BASE® HRA+ Frequently Asked Questions

 

Why would an employer adopt a BASE® HRA+?

 

Will the BASE®  HRA+ replace my current benefit plan?

 

Are medical expenses incurred prior to establishing a BASE® HRA+ eligible for reimbursement?

 

 

Why would an employer adopt a BASEŽ HRA+?
 There are many potential reasons why an employer may look at enrollment into a BASEŽ HRA+:

  • The employer is decreasing insurance premium rates.
  • The employer is instituting or adding a benefit plan for their employees.
  • The employer is dropping group health insurance coverage and setting up an HRA to help employees pay for medical bills.

 

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Will the HRA+ replace my current benefit plan?
The BASEŽ HRA+ can be coupled with other health benefit plans already in place such as the 125 Cafeteria Plan or be a standalone benefit.

 

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Are medical expenses incurred prior to establishing a BASE® HRA+ eligible for reimbursement?
Medical expenses incurred prior to your enrollment in an HRA are not eligible for reimbursement. Only those expenses incurred after you establish a plan can be included. The IRS reiterated this position in a document published in March 1999 titled "Retroactivity". The IRS also issued Revenue Ruling 2002-58 to address issues caused by some plans that were still out of compliance.

 

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