We've learned two things recently about health coverage for businesses from the General Accountability Office:

• Government Study Finds Consumer-Driven Health Plans Control Costs Better Than Traditional Insurance
• Consumer-Driven Health Plan Enrollees Healthier Than Enrollees In Traditional Plans

These are just two of the headlines coming from the media this week.  Obviously people are starting to take notice of the fact that there are ways to enhance the “Traditional Insurance Plan”. 

Consumer-driven health care plans, which are being offered by more companies, cost less than traditional health insurance and are better at controlling the growth in health care spending, according to a new study by the General Accountability Office.  The study compared Preferred Provider Organization (PPO) health insurance plans to Health Reimbursement Arrangements (HRAs).

According to this study HRA participants were able to hold their health care spending well below that of traditional insurance participants, while staying healthier at the same time.

BASE® has been providing clients with the administrative services to employers that provides their employees an incentive to make more sensible, better-informed decisions about where their health care dollars are spent through an HRA.

As 2011 approaches and many of the health care reform changes are taking hold, employers are researching their options to control costs and avoid skyrocketing insurance premium increases.  BASE® is providing a complimentary benefit analysis to any business that is ready to educate themselves on exactly how they could be saving with an HRA or a number of Cafeteria plan options that can also help save benefit dollars.

Anne Case

BASE® - Director of Marketing

Do you have triskaidekaphobia? Is it treatable? Will my insurance pay for treatment or will I be able to get reimbursed through my Flex account or HRA? All good questions but the main question you should be asking is; what is triskaidekaphobia? It’s an irrational fear of the number 13. I know it sounds odd but there are some people out there who won’t even get out of bed today!

Some hospitals and hotels don’t have a 13^th floor, too unlucky. Airports don’t have a gate 13 and if you think about it planes never have a 13^th row! There are several superstitions about the number 13 and why it is considered to be so unlucky. 

• The fear of the 6^th day in the week combined with the fear of the number 13. These two factors make one big time unlucky day for some!
• 13 is considered unlucky because it follows 12. The number 12 is considered a complete number. (12 months in a year, 12 zodiac signs, 12 gods of Olympus, 12 tribes of Israel, 12 apostles of Jesus, etc.)
• Having a dinner party with 13 friends? One of those people will die within a year (according to superstition).
• A birthday on the 13^th means you will be unlucky all your life (once again, according to superstition).
• 13 letters in your name means bad news (for example Charles Manson – eek!!)

I guess I look at it differently. Number one, it’s FRIDAY!! Number two, it’s PAYDAY!! And the most important, I was able to get up out of bed this morning for another day in my life. Corny, I know. It just seems like there are so many real issues we have to deal with every day why add superstition to the mix?

And in case you do suffer from triskaidekaphobia, the treatment would be allowable on your HRA and FSA!! So check out our website today (or maybe on Monday if you do have triskaidekaphobia) and see if we can help you with some of those medical costs.

Have a great Friday the 13^th and remember the positives of the day.

Laura Radebaugh

BASE® Administration/Adjudication Specialist

Beginning January 1, 2011 medicines you purchase at your local pharmacy such as Benadryl, Claritin, TheraFlu, ointment for rashes and so on, will be eligible under your Flexible Spending Account (FSA) and/or Health Reimbursement Arrangement (HRA) IF you have a prescription or doctor’s authorization indicating that it is medically necessary that you purchase the product.

So what do I need to do differently from what I am currently doing today?  In 2011 you will need to provide the prescription/authorization, and you will not be able to use your debit card if you have one associated with your account. When you submit a claim to your administrator you will need to include the prescription/note/authorization from your doctor.  In many cases your doctor recommended the product you are taking today, so it will likely be easy to obtain the necessary documentation for your claim submission.

Your FSA and HRA are 12 month plans if you are enrolled for the entire year. Therefore, you have until the end of a calendar year (some plans also include a grace period) to submit your claims for reimbursement with proper documentation if required.

The FSA and HRA are excellent plans to contribute to for your medical expenses if you have one available through your employer.  The tax savings reward is definitely worth the participation.  Visit www.baseonline.com to learn more about our products, and check out our interactive calculators to determine your savings.

Shawndi Filby

BASE - VP Business Development & Training

This week I am going to talk about employee benefits from an employee's point of view.  My wife, Ashley, and I are both employees of BASE^®. Recently, Ashley broke her leg. When she does things, she doesn't do things half way. She broke both her tibia and fibula right above her ankle. The break was so bad surgery was required to repair the damage. When it was all said and done, she ended up with 6 screws and a plate in her new bionic foot.  Although the recovery is coming along smoothly, the doctor said that it would take somewhere between 4 to 6 months to fully heal.

With an injury this severe, many different problems popped up that we had to worry about.  For example, we were worried whether or not she was going to be able to get in and out of our vehicle once she was ready to start getting around again.  We also have 2 rambunctious dogs and it was a big concern on how we keep them from unintentionally hurting or reinjuring her ankle.  A lot of things we would normally take for granted needed to be addressed and reevaluated.  The one thing we didn't have to worry about was our medical expenses. BASE^® has a Health Reimbursement Arrangement (HRA) and a Flexible Spending Account (FSA) available for the company’s employees.

Right now, our insurance has a $2000 deductible but because of our HRA, Ashley and I are only responsible for the first $750.  BASE^® will reimburse us for the remaining $1250.  I don't know about you, but paying out $750 is a lot easier for me to swallow than paying out $2000.  Plus, we also have an FSA set up here at BASE^®.  We used our FSA on other incidentals that popped up like crutches, prescriptions for pain and other medical equipment.  The FSA allows us to contribute pretax dollars to an account where we then can tap those dollars and use them to pay for our out of pocket expenses. The way it works is quite simple.  We simply pay for any of those expenses on our own.  We would then submit a receipt of that expense to our FSA provider.  They in turn reimburse us with those tax-free dollars for that expense from our account.  Thanks to the benefits that we utilize from BASE^®, medical emergencies don't hit the wallet nearly as hard as they could have.

BASE^® offers HRAs and FSAs to businesses around the country. Call us today to find out how your employees can benefit!

First the Health Reform bill comes along, and now the Senate is at it again with the Small Business Job Act.  With a whole new set of tax provisions and changes to various government programs as we know them today, how is any small business owner supposed to keep all these things straight?  One item in the stalled bill that appears to be most relevant to me is the suggestion that a new deduction could be put into place that would allow self-employed business owners to deduct their family’s health insurance expenses from their self-employment tax income. 

Again, another muddy water proposal that could slide through with nobody really thinking through all the possible side effects.  Or, at least nobody who really would be affected knowing much about it until it is already law. Considering the Senate voted to begin debating this measure even before details were finalized, it leaves me wondering what the motives are and who is lobbying for this.

I suppose I care because it could ultimately affect my social security, which is already at risk of being non-existent by the time I would reach retirement age.  How many people proposing this bill are at risk for not having social security – none!  Instead they could simply pass the problem on to our children and grandchildren.

I’ve digressed, and return to the point at hand.  What does this new bill actually mean when we talk about self-employed business owners deducting their family’s health insurance expenses from their self-employment tax income?  An additional 15.3% in self-employment tax that they would be able to deduct, essentially leveling the playing field with larger companies.  However, a small business owner already has access to do so with a Health Reimbursement Arrangement (HRA) in place, not to mention they are able to include out-of-pocket medical expenses as part of the deduction through an HRA. 

I guess what I am trying to say is that if this bill were to move forward, it could provide short term relief for small business owners and altering long term effects on the youth of America.  It seems we try to recreate the wheel, instead of promoting tax codes that have been in effect since 1954.  Tax codes that many people still are unaware of that have been saving small business owners an average of $3,800 each year in tax savings on medical expenses, yet we feel the need to introduce new tax benefits in Senate bills for a small group of people looking to meet a political agenda – so who really benefits?

Anne Case

BASE - Director of Marketing & Communications