Plan Document Language That Makes Sense

Plan sponsors provide employees “health care expense accounts.” This is called health insurance. Like most company expense accounts there are stipulations employees must abide by.

Here’s one that makes sense:

“If claims on an individual are expected by the Plan to exceed $50,000 in a consecutive 12 month period, the Plan reserves the right to determine the health care provider.”

Imagine allowing an employee to stay at the Ritz for $500 per night instead of the Holiday Inn Express for $125! Health care expense accounts should be no different. Its all about common sense and traditional American business practices.


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