Ceridian Engages in Health Care Reform, Asks Clients to Help Preserve Tax Advantages of FSAs for Working Families
Ceridian believes elimination or curtailment of tax savings provided through FSAs may prove costly for American families
St. Petersburg, FL (PRWEB) June 18, 2009
Ceridian (http://www. ceridian. com/292pr13a) Benefits Services, a leading provider of employee benefits outsourcing (http://www. ceridian. com/292pr13b), is urging its clients and others to join forces to help preserve Health Care Flexible Spending Accounts (http://www. ceridian. com/292pr13c) (FSAs) — a widely used tax-advantaged program that may be in jeopardy under health care reforms being considered by Congress.
Ceridian, one of the largest business services companies in the nation, believes that the elimination or curtailment of the tax savings provided through FSAs (http://www. ceridian. com/292pr13d) will make it more expensive for employees and their families to pay their ever-rising out-of-pocket medical costs
“Ceridian is actively engaged in the legislative process to ensure that our customers and their employees don’t lose a valuable tool in managing their health care costs,” said Bart Valdez, Executive Vice President and General Manager of Ceridian Benefits Services. “Eliminating or restricting Health Care FSAs would dramatically affect the ability of working families to pay their out-of-pocket health care expenses.”
Valdez has contacted U. S. Sen. Bill Nelson of Florida to voice Ceridian’s concerns. Ceridian will send targeted messages to its FSA customers based in states with senators on the Senate Finance Committee. The company will provide its clients with letters they can fax or email to their senators to urge them to keep FSAs intact. In addition, Ceridian has engaged a prominent Washington, D. C., law firm to monitor the legislation and has joined forces with others in the industry in a grassroots effort to make the case to preserve Health Care FSAs.
Studies show that 30 million Americans use FSAs. These tax-advantaged plans can save employees up to approximately 30 percent on out-of-pocket health care expenses, including prescriptions, co-pays and preventive, dental and vision services.
The Senate Finance Committee is considering legislation that would “cap” the tax advantages currently available for employer-provided health benefits, including the portion paid by employees. The proposed cap might cover employee contributions to FSAs.
Although Ceridian would prefer to see no changes in tax law affecting FSAs, it will advocate, on behalf of its clients, for a separate FSA cap.
“There is a crucial difference between the costs of health insurance premiums and out-of-pocket health costs,” Valdez said. “While we would prefer to see no changes in tax law affecting FSAs, if the Committee decides to cap the tax exclusion for employer-provided health care coverage, then there should be a separate FSA cap or a specific FSA carve-out within the single cap.”
To see how FSA accounts save consumers money, visit Ceridian’s Flexible Spending Account Calculator (http://www. ceridian. com/292pr13e).
About Ceridian:
Ceridian is a global business services organization that offers a comprehensive range of innovative solutions. From human resources and benefits to accredited employee assistance, work-life and health and productivity services, Ceridian helps organizations maximize their human, financial and technology resources. As a leader in payroll outsourcing, gift cards and controlled spending, Ceridian is also a driving force in payment innovation. Whether partnering to improve employee productivity, save money or minimize financial risks, Ceridian's business is to help organizations stay focused on their business. For more information about Ceridian's comprehensive array of human resource solutions, visit www. ceridian. com.
CONTACT:
Joe Brown
(727) 395-8952
Joe. brown @ ceridian. com
Or
Stephanie Brown
(727) 395-8586
Stephanie. brown @ ceridian. com
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: www. HRmarketer. com) on behalf of the company listed above.
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