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.
Arkansas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the guidelines and provisions for creating a self-insured medical payment plan for key employees within a corporation in the state of Arkansas. This resolution is crucial for companies aiming to provide comprehensive healthcare benefits to their top-level executives and other important personnel. By opting for a self-insured medical payment plan, companies can gain more control over their healthcare expenses and tailor the coverage to meet the specific needs of key employees. This resolution serves as a formal agreement among the corporate stakeholders, stating the intention to establish such a plan and detailing the rules and regulations that participants must follow. The specific types of Arkansas Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees could include: 1. General Arkansas Corporate Resolution Establishing a Self-insured Medical Payment Plan: This resolution provides a broad framework for the self-insured medical payment plan, including eligibility criteria, funding mechanisms, and contractual obligations. 2. Arkansas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Senior Executives: This resolution specifically caters to senior executives of the corporation, outlining additional benefits and privileges in the self-insured medical payment plan that align with their roles and responsibilities. 3. Arkansas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Management Personnel: This resolution focuses on key management personnel, who may not be considered senior executives but still hold critical positions within the organization. It establishes a medical payment plan tailored to the needs and requirements of these individuals. 4. Arkansas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Specific Departments/Divisions: In larger corporations, it might be necessary to establish separate resolutions for specific departments or divisions. This allows for a more targeted approach to healthcare benefits and ensures that each unit receives appropriate coverage. Keywords: Arkansas, Corporate Resolution, Self-insured Medical Payment Plan, Key Employees, Healthcare Benefits, Legal Document, Guidelines, Provisions, Control, Eligibility Criteria, Funding Mechanisms, Contractual Obligations, Senior Executives, Key Management Personnel, Specific Departments, Divisions.
