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ADP TotalSource is offering a new class of medical plans - "High Deductible Health Plans," known
as "HDHPs." HDHPs have high deductibles and generally pay benefits based on coinsurance instead of
co-pays. As a result, the premiums for HDHPs are typically much lower than premiums for other plans.
In addition, another appealing feature of HDHPs is that people whose medical coverage qualifies as
HDHP coverage may contribute to a new kind of tax-free savings account -
a "Health Savings Account" ("HSA"). HSAs combine some of the best features of IRAs and FSAs - and
unlike an FSA, the money in an HSA is never at risk of being forfeited if it is not spent. Unused
funds roll over from year to year.
Talk to your ADP TotalSource representative about whether an HDHP with an HSA could help you and your
employees reduce your medical coverage costs, reduce income taxes, and save money for future health care
needs.
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