Consumer Driven Health Plans

Consumer Driven Health Plans
Consumer Driven Health Plans (CDHP), Health Savings Accounts (HSA), High Deductible Health Plans (HDHP) and Flexible Spending Accounts (FSA) can help you and your employees manage the rising costs of health care.

Adding them to your employee benefits package can:

• Lower company expenses through the cost sharing of a high-deductible health plan
• Provide FICA tax savings on reduced salaries as a result of employee contributions to consumer directed plans

Best of all, your employees receive cost-effective, quality health benefits for themselves and their families.

High Deductible Health Plans (HDHP)
HDHPs and HSAs can be a cost-efficient way to provide health benefits to your employees.  A high-deductible health plan (HDHP) is a health benefit plan that charges a lower premium and has a higher deductible than traditional health benefit plans. It is usually paired with a Health Savings Account (HSA) to provide maximum benefits at the lowest cost.  

By combining an HDHP with an HSA, your employees receive quality coverage as well as the opportunity to set aside tax-free money for current year health expenses and build savings for future medical expenses.

Health Savings Accounts (HSA)
HSAs are integrated with High Deductible Health Plans (HDHP).  An HSA is a unique, tax-advantaged account—money goes in tax free, earns interest tax free and is not taxed upon withdrawal to pay for qualified medical expenses. You, your employee, or even an employee’s family member may make contributions to the HSA.

Flexible Spending Accounts (FSA)
Flexible Spending Accounts allow your employees to set aside money on a pre-tax basis to pay for eligible health care and dependent care expenses such as:

• Deductibles
• Co-Payments
• Prescriptions
• Vision and dental expenses
• Child care
• Elder care

By offering Flexible Spending Accounts, you may experience a reduction in employer and FICA taxes, while your employees who participate reduce their taxable wages. The result is lowered taxes for you, with added benefits for your employees. The more employees enroll, the more you save on payroll taxes.

Contact us to learn more about Consumer Driven Plans.