BASE® HRA+ (Defined Contribution Plan)
BASEŽ HRA+ is a solution for employers whether or not they have a group health insurance plan in place. The BASEŽ HRA+ is an employer-paid reimbursement program, designed to specifically assist employees with medical expenses. This means savings for employers and more options for employees.
Linked - Available for employers with a group health insurance plan in place who are looking to keep the same insurance coverage for their employees but reduce the overall cost.
Non-Linked - Available for employers with or without a group health insurance plan in place who are looking to reimburse certain types of medical expenses.
LINKED HRA+
Benefit to Employer:
Plan Design.
Employers can choose to raise the deductible on their current group health insurance plan, which will reduce the overall cost of the insured plan. The employer will utilize the BASEŽ Linked HRA+ to self insure a portion of that deductible to keep the employees responsibility of the deductible maintainable. All reimbursements to the employee are tax-free to the employee and tax deductible to the employer.
Protection of Funds.
HRA funds are held by the employer and only paid to the employees once a qualifying expense has been adjudicated by BASEŽ. No prefunding is necessary.
Improved Employee Relations.
Employees will appreciate the choice, flexibility, and security provided by the BASEŽ HRA+. Implementing an HRA ultimately provides an additional benefit that helps to strengthen employee benefit programs and make them a more valuable recruiting tool.
Portability.
The BASEŽ HRA+ is portable and works with any carrier, health insurance plan, or group benefit plan. Since there are no restrictions on the type of health plan that can be paired with an HRA, employers are free to choose the perfect plan for employees.
Cost Containment.
Employers have more control of the overall cost of their benefit plans by utilizing the BASEŽ Linked HRA+.
Benefit to Employee:
No Contribution.
Employers provide 100% of the annual contribution amount established for employees to use towards eligible medical expenses.
Tax-Free Means of Paying Healthcare Costs.
Once the employee’s responsibility is met on their portion of the insured deductible, all reimbursements to the employee thereafter are considered nontaxable income. Since all reimbursements are nontaxable, the employee will not see a change in the amount they report on their W-2.
Budget Control.
Employees know in advance how much will be available for reimbursement of qualified medical expenses. This also provides employees with a more active role in making medical decisions, since employees are free to make their own purchasing decisions and are more accountable for their health care spending.
Enhanced Benefits Package.
The HRA+ is a benefit that provides employees hands-on management of their health care expenses, while the employer covers a portion of the cost.
NON-LINKED HRA+
Benefit to Employer:
Plan Design.
The employer will have the ability to choose what type(s) of qualifying medical expenses it wishes to make available to its employees for reimbursement through the HRA. The employer will also establish a benefit limit or maximum that will be available to the employee.
Protection of Funds.
HRA funds are held by the employer and only paid to the employees once a qualifying expense has been adjudicated by BASEŽ. No prefunding is necessary.
Reimbursement Control.
Employers decide which expenses will be reimbursed under the HRA, whether they are expenses allowed under their customized plan or allowable under IRC §213(d).
Controlled Funding Limits.
Employers determine their annual contribution amount for each employee, and are able to limit risk due to the annual rollover caps.
Improved Employee Relations.
Employees will appreciate the choice, flexibility, and security provided by the BASEŽ HRA+. Implementing an HRA ultimately provides an additional benefit that helps to strengthen employee benefit programs and make them a more valuable recruiting tool.
Portability.
The BASEŽ HRA+ is portable and works as a stand-alone benefit option. Since there are no restrictions on the type of health plan that can be paired with an HRA, employers are free to choose the perfect plan for employees whether or not they offer a group health insurance plan.
Benefit to Employee:
No Contribution.
Employers provide 100% of the annual contribution amount established for employees to use towards eligible medical expenses.
No Use-It or Lose It Rules.
The HRA allows employees to roll over unused benefit amounts from year to year, up to the established limit. If employees don’t use the maximum benefit dollar contribution, it can be used in subsequent years. Rather, employers are able to design plans so that employees can carry unused benefit dollar amounts into the future.
Tax-Free Means of Paying Healthcare Costs.
Not only will reimbursements help employees minimize out-of-pocket expenses, but it is not considered taxable income. This means of paying for healthcare costs allows employees to pay for co-pays, deductibles, eye care, dental care, and much more with tax-free benefit dollars, making them free to make their own purchasing decisions with regard to their healthcare expenses.
Budget Control.
Employees know in advance how much will be available for reimbursement of qualified medical expenses. This also provides employees with a more active role in making medical decisions, since employees are free to make their own purchasing decisions and are more accountable for their health care spending.
Enhanced Benefits Package.
The HRA+ is a benefit that provides employees hands-on management of their health care expenses, while the employer covers a portion of the cost.
Continue to HRA+: Eligibility