BASE^® Blog

According to a Kaiser Family Foundation report, more than 25% of adults in the US struggle to keep up with their medical bills.  That figure includes employees WITH health insurance.  The problem has gotten so bad, that medical debt is now the #1 source of personal bankruptcy filings.

The cost of health care is continually on the rise, so it is important that both the employer and the employee learn how to take steps to cut costs without sacrificing benefits.  Both share a common goal:  lowering health care costs, but what can each of them do?

Here are a few tips the EMPLOYER can use to help save on health care costs:

• Consumer-Driven Health Plans – incorporate a consumer-driven health plan, such as the BASE® Health Reimbursement Arrangement or any of the options available through the BASE® 125 Cafeteria Plans. An HRA and FSA offer cost-savings for the employer, but also benefits the employees. 
• Education – with proper education from the employer, employees can become smarter health care consumers, saving both parties money.  Educate employees during Open Enrollment; provide easy-to-understand insurance material, etc. 
• Have an Expert Available – Having a company on hand, like BASE®, to implement the right benefits plan for their business, the employer will know that they are receiving the best options and saving the most money.

Here are a few tips the EMPLOYEES can use to help save on health care costs:

• Preventative Care – stay on the healthy track! Take advantage of preventative care such as annual exams or “well baby” checkups.  Most, if not all, preventative care is free under all plans in network.  These tests can catch health problems early, when they may be more easily treated. 
• Take Care of that Body – Choose to create healthy habits – eat right, exercise regularly, stop smoking, just to name a few. Adopting a healthy lifestyle can help save money on prescription drugs and frequent doctor visits due to chronic illnesses. 
• Choose the Right Benefits – enroll in a company’s Health Reimbursement Arrangement (HRA) and Flexible Spending Account (FSA). Use the pre-tax money towards health insurance, co-pays, deductibles, prescriptions, dental, and vision.  Employees will see an increase in take-home pay and won’t have to worry about setting aside extra money in a savings account on their own.

Don’t get hurt by health care costs.  It pays for employers and employees to explore their options for lowering their medical costs, and not just for the actual savings but for the peace of mind that comes with knowing health care wont drive them, or their business, into debt.

With US workers spending $7,685 a year on health care, according to Bank of America’s Workplace Benefits report, finding strategies to reduce health care costs is a worthwhile venture – both for the organization as a whole and the employees who keep it running day in and day out.  For more information on how a business can lower their health care costs, call BASE® at 888.386.9680. 

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Thanksgiving is always a time where people reflect on the good in life.  Most people’s first thoughts turn towards family, food, and friendships, but it is important to not forget to be thankful for the things at work.  

There are so many reasons to be thankful for at work: 

• A great boss
• Coworkers that care
• Job satisfaction
• Hot coffee
• Lunch breaks
• Weekends & PTO

But there is something else to be thankful for – the health benefit plans that allow employees to take care of themselves and their families.  These benefits, such as health insurance, help cover the cost of medical expenses, Health Reimbursement Arrangements (HRAs) that reimburse employees for the out-of-pocket medical expenses and health insurance premiums, and 125 Cafeteria Plans that allow employees to pay for qualified benefits tax-free which also help the business in many ways. 

A healthy, productive work team is a strong asset to a business’ bottom line.  The right mix of health benefits offered can help employees access quality care and have a better health outcome, which allows them to be healthier, more productive, and present at work.  Having healthy employees can help any small business be more productive, in turn lowering costs associated with health care, absenteeism, and employee turnover.

Good benefits can immensely improve the quality of life.  According to a Bank of America Workplace Benefits Report, the typical U.S. employee spends $7,685 on health care per year.  So an attractive employee benefit package can provide huge blessings to the employer, employee, and their families.

Here at BASE® one of our Core Values is Balance.  We hope you find that balance – both at and outside of work – to be thankful for this year!

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Do you have that perfect recipe to help celebrate Thanksgiving? As the holiday season approaches, many cook and put together a feast for their family, creating the perfect holiday meal, leaving everyone thankful, happy, and ready for the year to come.  But what about building the perfect “recipe” for your employees’ pre-tax benefit account for the upcoming year?  It is all about finding the right “ingredients.”  There are many to choose from, but only a few work together to benefit each business and their needs.  When a company decides to incorporate a Health Savings Account (HSA), finding that “secret ingredient” to maximize the tax savings benefit is key.  What is that “secret ingredient?”  A Limited Purpose FSA.

The BASE® Limited Purpose Flexible Spending Account (FSA) is a type of flexible spending account that is strictly for reimbursing eligible dental and vision care expenses.  This type of plan is for employees who are enrolled in a high deductible health insurance plan and also utilizing a Health Savings Account (HSA).

Not many know about this “secret ingredient” and what it can be used for.  With a Limited Purpose FSA an employee can use their pre-tax dollars to pay for qualified dental and vision expenses, such as:

• Dental cleanings
• Dental fillings
• Vision exams, contact lenses, contact lens solution/cleaner
• Prescription glasses
• Dental & vision preventative care

How does a Limited Purpose FSA pair with an HSA?  These two benefits go together like turkey and stuffing!  Employees cannot use their Limited Purpose FSA balance to pay for qualified medical expenses that are not dental or vision costs, but the employee CAN use their HSA balance to fill in the gaps and pay for those expenses.  With both benefits mixed together, it can help to make out-of-pocket medical expenses taste better more affordable.  Funding dental and vision expenses from the Limited Purpose FSA may allow employees to keep more savings in the HSA.  Incorporating these benefits into a business means that employees don’t have to entirely give up the benefits of a Flexible Spending Account (FSA) when there is an HSA in place.

When mixed properly with an HSA, the Limited Purpose FSA can help top off that perfect “recipe” further reducing employee and employer taxes while allowing the employee to allocate HSA funds to other purposes.  Let BASE® help you perfect your recipe for a winning employee benefits package and call 888.386.9680 before the holidays!

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