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.
Maryland Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees A Maryland Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the establishment of a self-funded healthcare plan specifically designed for key employees within a corporation. This plan provides comprehensive medical payment coverage to these key employees, ensuring their healthcare needs are effectively met. Key employees refer to individuals who hold significant positions within the company and contribute significantly to its success. They may include top executives, high-ranking officials, department heads, or individuals with critical skills and knowledge that are vital to the company's operations and competitiveness. The self-insured medical payment plan eliminates the involvement of traditional insurance companies and allows the corporation to directly assume the financial risks associated with providing healthcare coverage to its key employees. By self-insuring, the corporation can customize the plan to suit the unique needs of the key employees while potentially saving costs in the long run. This corporate resolution serves as a formal agreement and acknowledgement by the corporation's board of directors, or other authorized decision-making bodies, to establish and operate the self-insured medical payment plan for key employees. It details the specific terms, conditions, and guidelines under which the plan will operate, ensuring compliance with state and federal laws and regulations. Key elements commonly addressed in the Maryland Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may include: 1. Plan Overview: A general description of the plan, its purpose, and objectives. 2. Eligible Employees: Definition and criteria for identifying key employees eligible to participate in the plan. 3. Coverage Details: Comprehensive information on the medical benefits provided, including inpatient and outpatient services, prescription drugs, preventive care, and other necessary treatments. 4. Funding Mechanism: Explanation of how the plan will be funded, including contributions from the corporation and the participating employees. 5. Role of Administrator: Identification of the individual or entity responsible for overseeing the administration and management of the plan. 6. Claim Procedures: Guidelines for submitting, processing, and resolving medical claims made by the key employees. 7. Reporting and Record-Keeping: Requirements for regular reporting and record-keeping to ensure transparency and regulatory compliance. 8. Termination and Amendment: Procedures for terminating or amending the plan as necessary, ensuring flexibility for changes in the future. 9. Legal Compliance: Assurance that the plan will adhere to all relevant state and federal laws, including ERICA (Employee Retirement Income Security Act) if applicable. It is important to consult with legal professionals experienced in corporate law and employee benefits in Maryland to ensure the creation of a comprehensive and legally compliant Maryland Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees. Different variations or types of this resolution may exist depending on the specific needs and preferences of the corporation. For example, there may be variations in coverage limits, cost-sharing arrangements, or specific provisions for different tiers of key employees. Each corporation may tailor the resolution to best suit its unique circumstances while complying with Maryland state laws and regulations.
