Discrimination favoring management or highly paid employees is not permitted for deductible health and accident insurance plans. For self-insured medical reimbursement plans (i.e., direct payment or reimbursement by the employer of the medical bills of the employee or family), no discrimination, either in eligibility or benefits, is permitted if "highly compensated individuals" are to receive all plan benefits tax-free. The plan must benefit, in general, at least 70% of employees who are not highly compensated employees. However, there are exceptions. A "highly compensated employee" is one who has a significant ownership interest in the company, or who is one of the five highest paid officers or employees. An alternative designation is an income threshold, currently $80,000. If a self-insured plan is discriminatory, an employee who is considered a highly compensated employee must include the amount of discriminatory benefits received in gross income.
A Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a formal document adopted by a corporation based in Massachusetts to establish a self-insured medical payment plan specifically designed for its key employees. This resolution outlines the terms and conditions under which the plan will be administered and the benefits provided. Key employees, often considered vital to a company's success, require special attention and care, which could include comprehensive healthcare coverage. Healthcare costs can be substantial and traditional insurance plans may not always meet the unique needs or expectations of key employees. In such cases, a self-insured medical payment plan can be an attractive alternative. By opting for a self-insured medical payment plan, the corporation assumes responsibility for funding the medical expenses of its key employees directly. This approach allows for greater flexibility in tailoring the benefits and coverage to address the specific healthcare requirements of these employees. It also provides the corporation with greater control over the plan's administration and costs. The Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees typically includes key provisions such as: 1. Purpose: The resolution outlines the reasons and objectives behind establishing the self-insured medical payment plan for key employees. This may include attracting and retaining top-tier talent, ensuring comprehensive healthcare coverage, and offering a competitive employment package. 2. Funding: The resolution explains how the plan will be funded, whether through regular contributions from the corporation's general assets or through a designated fund solely for healthcare expenses. 3. Plan Administration: This section details how the plan will be administered, including the appointment of a plan administrator who will manage and oversee the day-to-day operations, handle claims, and ensure compliance with relevant laws and regulations. 4. Coverage and Benefits: The resolution outlines the scope of coverage and benefits offered to key employees under the self-insured plan. This may include medical, dental, vision, prescription drugs, mental health, and other necessary services as determined by the corporation. 5. Eligibility and Participation: The resolution defines the criteria for key employees' eligibility to enroll in the self-insured medical payment plan. It may include factors such as job title, level of responsibility, length of employment, or other specific requirements deemed appropriate by the corporation. 6. Plan Governance: This section establishes the governing body responsible for making decisions related to the self-insured medical payment plan. It may identify a committee or board of directors vested with the authority to review and approve changes to the plan, resolve disputes, and make other critical decisions. 7. Compliance: The resolution prioritizes compliance with all applicable federal and state laws, regulations, and reporting requirements to ensure the plan's legality and adherence to industry standards. This includes provisions for periodic audits and reviews to maintain the plan's financial stability and sustainability. Different types of Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plans for Key Employees may include variations in coverage levels, eligibility criteria, funding sources, or plan administration structures. Each resolution is customized to meet the specific needs and goals of the corporation adopting it, ensuring that key employees receive comprehensive healthcare coverage tailored to their requirements.A Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a formal document adopted by a corporation based in Massachusetts to establish a self-insured medical payment plan specifically designed for its key employees. This resolution outlines the terms and conditions under which the plan will be administered and the benefits provided. Key employees, often considered vital to a company's success, require special attention and care, which could include comprehensive healthcare coverage. Healthcare costs can be substantial and traditional insurance plans may not always meet the unique needs or expectations of key employees. In such cases, a self-insured medical payment plan can be an attractive alternative. By opting for a self-insured medical payment plan, the corporation assumes responsibility for funding the medical expenses of its key employees directly. This approach allows for greater flexibility in tailoring the benefits and coverage to address the specific healthcare requirements of these employees. It also provides the corporation with greater control over the plan's administration and costs. The Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees typically includes key provisions such as: 1. Purpose: The resolution outlines the reasons and objectives behind establishing the self-insured medical payment plan for key employees. This may include attracting and retaining top-tier talent, ensuring comprehensive healthcare coverage, and offering a competitive employment package. 2. Funding: The resolution explains how the plan will be funded, whether through regular contributions from the corporation's general assets or through a designated fund solely for healthcare expenses. 3. Plan Administration: This section details how the plan will be administered, including the appointment of a plan administrator who will manage and oversee the day-to-day operations, handle claims, and ensure compliance with relevant laws and regulations. 4. Coverage and Benefits: The resolution outlines the scope of coverage and benefits offered to key employees under the self-insured plan. This may include medical, dental, vision, prescription drugs, mental health, and other necessary services as determined by the corporation. 5. Eligibility and Participation: The resolution defines the criteria for key employees' eligibility to enroll in the self-insured medical payment plan. It may include factors such as job title, level of responsibility, length of employment, or other specific requirements deemed appropriate by the corporation. 6. Plan Governance: This section establishes the governing body responsible for making decisions related to the self-insured medical payment plan. It may identify a committee or board of directors vested with the authority to review and approve changes to the plan, resolve disputes, and make other critical decisions. 7. Compliance: The resolution prioritizes compliance with all applicable federal and state laws, regulations, and reporting requirements to ensure the plan's legality and adherence to industry standards. This includes provisions for periodic audits and reviews to maintain the plan's financial stability and sustainability. Different types of Massachusetts Corporate Resolution Establishing a Self-insured Medical Payment Plans for Key Employees may include variations in coverage levels, eligibility criteria, funding sources, or plan administration structures. Each resolution is customized to meet the specific needs and goals of the corporation adopting it, ensuring that key employees receive comprehensive healthcare coverage tailored to their requirements.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
