During this time of change with Healthcare, more and more
questions are arising about many different topics. Along with the questions
come some uncertain answers. However, one topic that BASE® can help you
understand is the Section 105 HRA. Below are a few questions that BASE® Benefit
Specialists answer quite often and can help you decide if an HRA is right for
you. To see if you would be eligible for an HRA, click here.
Q: Why haven't I
heard of this type of plan before?
A: Section 105 of the Internal Revenue Code was written in
1954 in an attempt by the government to encourage small businesses to provide
benefits to their employees. With health care costs on the rise in recent
years, the HRA has become more widely utilized. With the tremendous amount of
savings this plan offers, thousands of small businesses across the United
States have adopted it in an attempt to combat the rising costs of health care.
Q: Can I do this on my own?
A: Legally, any individual could administer an HRA for their
business. However, you will need to be
familiar with hundreds of pages of tax code and supply all the legal
documentation required by the Internal Revenue Service, Department of Labor,
and the Employee Retirement Income Security Act. You must also carefully adhere
to state insurance regulations and have a third-party adjudicate your annual
medical expenses. Plus, with the addition of the Affordable Care Act (ACA) and continuous
changes, administering your own plan would be very difficult. With over 3,000
accounting firms utilizing BASE® to administer this benefit plan to their
clients, shouldn't you too?
Q: Aren't Section 105 HRAs Dead in 2014?
A: No, Section 105 HRAs are still alive as we move into
2014. Plan design depends on the number of employees in the business. It is
best to contact a BASE® representative regarding your own situation to maximize
the benefits that could be available to you.
Q: What is the difference between a
Health Reimbursement Arrangement (HRA) and Health Savings Account (HSA)?
A: Click here for a comparison on HRA and HSA plans. One
thing to remember is that an HSA qualified health insurance plan can be
utilized with an HRA.
If you are still unsure about if an HRA would be right for
you or to see if you qualify, give our Benefit Specialists a call today! They are standing by waiting to help you every step of the way.
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