Core Documents Reveals How Employers Can Increase Health Plan Deductibles and Keep Happy Employees

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Your group health insurance just increased another 25%. What do you do? Stop providing health insurance? Why not consider drastically increasing the health plan deductible, and do it in a way that doesn't make your employees unhappy. Core Documents has a solution, read on to learn how.

If you've seen the movie SICKO you know we live with a broken, corrupt healthcare system that's fleecing the American people for all they can. Evidence also indicates we have a political system on the take for whatever stacked legislation the healthcare industry can buy. If you haven't seen the movie, I highly recommend you see it as soon as possible. I'm not a Michael Moore fan, however he did a good job of presenting the dilemma this country faces regarding healthcare.

Core Documents, the nation's primary source for affordable Section 125 and HRA Plan Documents, reports that one way American employers are coping with high health insurance payments is by establishing a Health Reimbursement Arrangement, or HRA Plan.

HRAs were introduced by the IRS in 2002, by Revenue Ruling 2002-41 and IRS Notice 2002-45 that allow employers several new ways to help reduce the high cost of providing group employee benefits.

HRA Plans can be used as a stand-alone benefit or can be coupled with a high deductible health insurance policy.

In the stand-alone version the employer simply gives their employees a set amount of money every month, (i.e. $100, $150, $200 or more) and employees use the funds for reimbursement of out-of-pocket medical, dental or vision expenses and individual health insurance. Unused amounts at the end of the year can carryover to the next Plan Year.

An HRA Plan coupled with a high deductible health insurance policy seems to be the most popular concept. In this arrangement the employer chooses a much higher Plan Year deductible, for example $2,500 instead of the company's old $250 deductible. They establish an HRA Plan to help shield employees from this extra $2,000 in deductible expenses. Employees who actually incur deductible expenses in excess of the $250 receive HRA benefits from $251 to $2,500, or up to $2,000. Employees who don't have deductible expenses in excess of the standard $250 were not affected by the new high deductible.

Actuaries will tell you that a normal group can expect 15% to 20% of their employees to have deductible expenses in excess of $250. The savings involved from establishing this type of HRA becomes a fairly easy mathematical equation where premium savings minus HRA estimated claims = total savings.

Core Documents reports that once employers test the concept for one year they normally come back in the second Plan Year with an appetite for more savings by using a much larger deductible of $5,000 or $10,000.

Core Documents, Inc. can help you establish an HRA Plan to couple with a high deductible health insurance plan. The IRS and Department of Labor required plan documents are only $299 plus $15 shipping and handling. The software to administer the few claims is free, and outsourced administration is available for only $8 per month, per employee. Go to or today for more information or speak to a consultant Certified in Flexible Compensation by calling 888-755-3373.


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Beth Davis, VP
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