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.
Alabama Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees In Alabama, a corporate resolution can be adopted to establish a self-insured medical payment plan specifically designed for key employees. This resolution outlines the guidelines and procedures for implementing such a plan within a company, ensuring that essential personnel receive comprehensive medical coverage. This type of self-insured medical payment plan caters to key employees who play a critical role in an organization, often possessing specialized skills, knowledge, or responsibilities. By providing them with adequate medical coverage, companies can attract and retain top talent, ensuring their well-being and job satisfaction. The Alabama corporate resolution for establishing a self-insured medical payment plan for key employees typically includes several vital components. These may include: 1. Purpose: This section of the resolution clearly defines the purpose of the plan, emphasizing the company's commitment to ensuring the health and welfare of its key employees. 2. Definitions: To avoid any confusion or misinterpretation, key terms such as "key employee," "self-insured medical payment plan," and others are explicitly defined within the resolution. 3. Eligibility Criteria: The resolution establishes the criteria that define key employees who will be eligible for participation in the plan, such as their job title, level of responsibility, or length of service. 4. Funding Mechanism: The document delineates how the plan will be funded, either through company funds, premiums contributed by participating key employees, or a combination of both. 5. Benefit Coverage: The resolution outlines the scope and extent of medical coverage provided to key employees under the self-insured plan. This may include medical, dental, vision, prescription drugs, and other forms of necessary healthcare. 6. Administration and Enrollment: The resolution specifies the procedures for administering the plan, including details about enrollment, claims processing, plan communication, and necessary documentation. 7. Oversight Committee: In some cases, an oversight committee composed of key stakeholders may be established to monitor the plan, evaluate its performance, and make necessary adjustments. It's important to note that while this description provides a general overview of an Alabama corporate resolution for establishing a self-insured medical payment plan for key employees, there may be variations and additional considerations depending on the unique requirements of individual companies or specific industries. In conclusion, the Alabama corporate resolution establishing a self-insured medical payment plan for key employees underscores an organization's commitment to their well-being and recognizes their contribution to its success. By offering comprehensive medical coverage, companies can attract and retain top talent while ensuring that their key employees receive the necessary healthcare support.
