Helping Employees With Health Insurance Without Providing A Group Plan

Do you know a small business owner that doesn't have a group health insurance policy in place, but would like to help their employees with the cost of health insurance? If so, you might just gain a new best friend.

Tell them about BASE®’s new Choice Incentive Plan. This plan is designed for employers who want to reduce the cost of health insurance for their employees, but aren’t interested in sponsoring a group health plan. This taxable benefit provides a predetermined allowance to help employees lower and offset the cost of purchasing their own health insurance policy and requires proof of payment.

You may know some business owners that provide their employees with a similar type of plan, but it often happens without any formalized or written guidelines in place. The BASE® Choice Incentive Plan can help employers set up the plan so it is done legally and in compliance with the Affordable Care Act.

So how does it work? It is fairly simple.

1) The employer sets a fixed dollar amount to go towards individual insurance plans, including health insurance premiums (on or off Exchange), supplemental insurance premiums (all types including disability), and life insurance (Term, Whole, Universal). The employee has the choice on what type of health coverage, so it fits their needs.

2) The employee then must provide proof that they did, in fact, use the benefit dollars provided by the employer to purchase health insurance. The employee submits the proper documentation to BASE®.

3) The employer then pays the defined benefit amount to the employee which is made to the employee on an after-tax basis.

Essentially this benefit plan separates wages from benefit dollars with simple administrative tool

The BASE® Choice Incentive Plan benefits both the employer and the employee in many ways. From controlling the funding limits to reducing the paperwork and documentation in the employer’s office to the tax benefit this plan carries with it, employers have many reasons to utilize the BASE® Choice Incentive Plan. Employees gain an advantage by having funds available to assist them in purchasing health insurance. They also have the freedom to choose whichever plan works for their personal needs.

All of these reasons are just the tip of the iceberg when it comes to the benefits associated with this plan. So the next time you think of a small business owner looking to enhance their benefit package, let them know that BASE® has the plan just for them.

The BASE® Choice Incentive Plan is new, simple, and it might even make you a new best friend.

If you or someone you know is interested in more information regarding the BASE® Choice Incentive Plan, please call 1-888-386-9680.

Tax Filing Deadline

Once again April 15th is just around the corner. It comes the same time every year and every year some people go into panic mode; I am one of those people. I have had everything ready and just need to get my returns finalized but why have I been dragging my feet? Maybe it is just the idea that has been pounded into our heads for years that April 15th is a bad day. I have had good April 15ths and bad ones.

As of March 28th the IRS reported they had received 90.3 million returns. That is almost a 5% increase over last year at that time. Also 91% of the returns were filed electronically. So maybe people are feeling more comfortable with filing online and getting past the fear of April 15th.

So many things have shifted to the web. You can pay almost any bill you have online, you can look up favorite recipes online, and you can even find an exercise program! People used to worry about the security of doing things online but regulations and innovations have made sites very secure.

Here at BASE® we have a secure website for our clients to enter their yearly medical expenses. By entering expenses online, clients can minimize the chance of errors by entering the expense amounts themselves and it is faster. If you submit online there is a three business day turnaround and with a client sending in a paper report, we have a two week turnaround (and that is only if there are no issues and we can read what they have sent in).

I would like to challenge everyone to try entering expenses online. Our site is very user friendly, especially if you are not very computer savvy. Keep in mind our Benefit Specialists are just a phone call away if you do need help or just want someone to walk you through the process.

If you are not enrolled in one of our products, take a look at We will have a product to suit your situation and help you get some tax savings. This may help to take away some of the April 15th fear!

Laura Radebaugh
BASE® - Administration/Adjudication Specialist

Self-Employed Health Care Tax Deduction Savings in 2014

The tax deadline is less than a month away – are you utilizing every deduction available to you?  Are you fully deducting your medical expenses? 


The Affordable Care Act has many searching for new ways to pay for healthcare.  Take into consideration health insurance premiums and then add in out-of-pocket expenses like co-pays, prescriptions, dental work, x-rays, vision care, eyeglasses and more, and you are looking at thousands of dollars in healthcare spending.


The BASE® Health Reimbursement Arrangement (HRA) continues to provide small business owners with a unique way to save on healthcare costs.  Through the BASE® HRA, self-employed business owners are able to take advantage of an average of $4,500 in tax savings each year.  If you break that down, it equals $375 per month that could be used to put toward other business expenses. 


This type of plan has been around since 1954, under IRS Code Section 105, allowing business owners to deduct medical expenses as a business expense.  The BASE® HRA has continually proven to save the microbusiness owner thousands in tax savings each and every year.  With healthcare spending continuing to rise, it is no wonder self-employed business owners turn to BASE® to help make healthcare more affordable.


Typically small businesses only take the self-employed insurance deduction on Form 1040. However, by enrolling in the BASE® HRA, business owners are able to deduct both their health insurance premiums* and qualified out-of-pocket expenses on their business tax return.


BASE® works with accountants across the country who rely on BASE® to assist their clients with this type of plan.  Nettie W. is an accountant from Indiana and has been working with BASE® for over ten years to save her small business clients thousands in tax dollars.  “As a tax preparer, I realize just how important tax savings can mean for each of my small business clients.  By offering the BASE® products, I have been able to help several of my clients save an enormous amount on their taxes.  The savings can go a long way to helping these businesses succeed.” 


The BASE® HRA provides one very simple way you can start making your healthcare more affordable today!  As the tax deadline nears, just think how great it would feel to be able to utilize an additional $4,500 in tax savings.  If you aren’t using a BASE® HRA, be sure that you or your accountant contacts BASE® to see if you qualify and to estimate your savings.


*The Affordable Care Act may not allow the reimbursement of health insurance premiums based on your business size and plan design. For additional details, please contact a BASE® Benefit Specialist.

Anne Case
BASE® - Director of Marketing & Communications