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.
Alaska Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees In Alaska, corporate entities have the option to establish a self-insured medical payment plan for their key employees. This type of resolution allows companies to take control of their employees' medical insurance coverage, providing customized benefits while ultimately saving costs. A self-insured plan enables employers to assume the financial risk of providing health benefits directly, rather than relying on traditional insurance providers. This resolution sets out the guidelines and framework for implementing a self-insured medical payment plan. It outlines the process by which the company will self-fund and administer medical benefits for key employees, ensuring their healthcare needs are catered to. The resolution provides a comprehensive roadmap for the company to follow in order to comply with relevant Alaskan laws and regulations. The Alaska Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees encompasses various important elements. These include: 1. Definition of Key Employees: The resolution typically defines key employees within the company who are eligible to participate in the self-insured medical payment plan. This may include top-level executives, senior managers, or individuals critical to the organization's success. 2. Plan Administration: The resolution outlines the responsibilities and processes for managing the self-insured plan. It designates individuals or committees responsible for overseeing the plan's operation, claims processing, and compliance with regulations. 3. Funding and Financial Provisions: The resolution addresses the funding mechanism of the self-insured plan. It may specify the creation of a dedicated fund from which medical expenses will be paid. The resolution may also outline the process for determining the financial contributions from both the employer and the key employees. 4. Coverage and Benefits: The resolution defines the scope of medical coverage and benefits provided under the self-insured plan. It outlines the range of services covered, including doctor visits, hospital stays, prescription medications, and preventive care. This section may also mention any additional benefits or wellness programs offered to key employees. 5. Compliance and Reporting: The resolution highlights the importance of complying with all applicable laws and regulations governing self-insured plans. It may require regular reporting and audits to ensure adherence to state and federal requirements. Compliance with privacy laws, such as HIPAA, may also be addressed. 6. Plan Amendments and Termination: The resolution provides provisions for making amendments to the self-insured plan, ensuring flexibility for future changes in healthcare policies or regulations. It also outlines the process for terminating the plan in case of unforeseen circumstances or strategic business decisions. It's worth noting that the Alaska Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may vary between companies. Some variations may arise due to specific industry requirements or the size of the organization. Customizing the resolution to match the unique needs of the company and its key employees is crucial to ensure effective implementation of the self-insured plan.
