HSAs Help Business Owners and Their Employees Control Health Care CostsMIAMI–(BUSINESS WIRE)–May 31, 2005–ADP TotalSource, Inc., oneof the nation’s largest Professional Employer Organizations (PEOs),and part of the Employer Services division of ADP, Inc., todayannounced it is expanding its benefits program to offer health plansthat are compatible with health savings accounts (HSAs). EffectiveJune 1, 2005, clients may select HSA-compatible high deductible healthplans (HDHPs) as part of the comprehensive suite of health benefitsoffered by ADP TotalSource, Inc. Clients who elect an HDHP through ADPTotalSource, Inc. will make their worksite employees eligible toestablish Health Savings Accounts (HSAs) through JPMorgan Chase BankN.A., a leading provider of HSAs.
HSAs, which were authorized by the Medicare Prescription Drug,Improvement and Modernization Act of 2003, are portable health savingsaccounts that individuals can use to pay for qualified medicalexpenses.
“With health care costs far outpacing wage growth during the pastseveral years, employers large and small are challenged to provideaffordable coverage,” said Carlos Rodriguez, ADP TotalSource’sdivision president. “We’re regularly evaluating benefits that we canoffer to our clients to help them attract and retain the bestemployees. The availability of HSA-compatible HDHPs means thatemployees will be eligible to establish HSAs, and this will provideour clients and worksite employees with a means for reducing theoverall cost of health insurance while encouraging employees to besmarter health care consumers. To help our clients decide whether theHDHP/HSA option is right for their business, we offer access toexpertise from our human resources representatives and a variety ofself-service decision support tools, including cost calculators,educational Web casts and plan comparison tools.”
For employees, pre-tax contributions to HSAs reduce their incometaxes while allowing them to set aside dollars for their healthexpenses. Both employers and employees can contribute to HSAs -currently as much as $5,250 annually for a family and $2,650 forindividuals. Individuals 55 to 65 may make additional “catch-up”contributions of up to $600 per year.
“As a leading financial services provider to the health careindustry and to consumers, JPMorgan Chase is pleased to be providingthis new health care savings option to ADP TotalSource participants,”said John Prince, senior vice president and health care businessdevelopment head for the Treasury Services unit of JPMorgan Chase.”JPMorgan Chase is committed to developing new solutions to meet theneeds of its clients and to providing less expensive, more efficientand accurate tools for processing health care transactions.”
Unlike Flexible Savings Accounts (FSA), where money that is setaside for medical expenses for the year but not used is forfeited, HSAbalances accumulate over time. The money in the accounts can also beinvested, allowing employees to increase their health care security.Additionally, withdrawals from HSAs are tax-free when used to pay forqualified medical expenses, a benefit that extends through retirement.
ADP TotalSource provides small and medium-size businesses withtraditional and Internet-based outsourcing solutions to reduce thecomplexities and costs related to employment and human resources. Thecompany’s integrated employment-related services consist of humanresources administration, regulatory and compliance management, safetyand risk management, payroll administration, retirement plan servicesand employee benefits management. For more information about ADPTotalSource, call (800) 447-3237 or visithttp://www.adptotalsource.com.
About JPMorgan Chase
JPMorgan Treasury Services is a unit of JPMorgan Chase Bank, N.A.,a subsidiary of JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE:JPM – News)is a leading global financial services firm with assets of $1.1trillion and operations in more than 50 countries. The firm is aleader in investment banking, financial services for consumers andbusinesses, financial transaction processing, asset and wealthmanagement, and private equity. A component of the Dow JonesIndustrial Average, JPMorgan Chase & Co. has its corporateheadquarters in New York and its U.S. retail financial services andcommercial banking headquarters in Chicago. Under the JPMorgan, Chaseand Bank One brands, the firm serves millions of consumers in theUnited States and many of the worlds most prominent corporate,institutional and government clients. Information about the firm isavailable on the Internet athttp://www.jpmorganchase.com.
Automatic Data Processing, Inc. (NYSE:ADP – News), with approximately$8 billion in revenues and 550,000 clients worldwide, is one of thelargest providers of a broad range of premier mission-critical,cost-effective transaction processing and information-based businesssolutions. ADP Employer Services (ES), a division of ADP, Inc., is aleading provider of integrated business administrative solutions thathelps its over 475,000 clients efficiently manage their internalprocesses, allowing them to focus on core competencies. ADP EmployerServices’ offerings include both traditional and Web-based outsourcingproducts and services, giving clients the ability to select from ADP’scomprehensive range of World Class Service solutions. Servicesinclude: payroll, tax regulatory management, HRMS, benefitadministration, time and labor management, retirement plan services,online recruiting, PEO services, and employment screening andselection. For more information about ADP Employer Services, or tocontact a local ADP sales office, reach us at 1.800.225.5237 or visitthe company’s Web site at http://www.adp.com.