Helping Employees With Health Insurance without Providing A Group Plan
BASE®’s new Choice Incentive Plan 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 like you set up a 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 tools.
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 like you set up a 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 tools.
BASE® Choice Incentive Plan Frequently Asked Questions:
Why would an employer adopt a BASE® Choice Incentive Plan?
Is it true that an employer can set different incentive levels according to employee class?
How does an employer know that employees are actually using this money for health insurance premiums?
How often do reimbursements take place?
Is this considered a pre-tax benefit plan?
Why would an employer adopt a BASE® Choice Incentive Plan?
Is it true that an employer can set different incentive levels according to employee class?
How does an employer know that employees are actually using this money for health insurance premiums?
How often do reimbursements take place?
Is this considered a pre-tax benefit plan?