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.
Keywords: Arizona, corporate resolution, self-insured medical payment plan, key employees. Description: An Arizona Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the establishment of a self-insured medical payment plan specifically designed for key employees within a corporate organization based in Arizona. This resolution serves as a formal authorization from the corporation's board of directors or shareholders to establish and maintain a self-insured medical payment plan for key employees. By opting for a self-insured approach, the corporation takes on the responsibility of directly funding and administering medical expenses incurred by key employees, rather than relying on traditional insurance coverage. The self-insured medical payment plan aims to provide comprehensive healthcare coverage for key employees, ensuring that they receive necessary medical treatments and services. Key employees typically include top executives, high-ranking managers, and other vital personnel crucial to the success and stability of the corporation. Different types of Arizona Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees may include variations based on eligibility criteria, coverage limits, funding arrangements, and plan administration. For example, some resolutions may specify eligibility requirements such as years of service or position level, while others may set specific coverage limits for various medical treatments or expenses. Additionally, the funding arrangement for the self-insured medical payment plan can vary. It may be funded solely by the corporation, or the organization may opt for a combination of employee contributions and corporate funding. These details will be specified within the resolution. Furthermore, the resolution will outline the responsibilities and obligations of the corporation in terms of plan administration. This may include appointing a dedicated administrator, ensuring compliance with state and federal regulations, and regularly reviewing the plan's financial standing and effectiveness. Overall, an Arizona Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a crucial legal document that formalizes the creation of a self-insured healthcare plan tailored to meet the needs of key employees within an Arizona-based corporation. It demonstrates the corporation's commitment to providing comprehensive healthcare coverage and ensures that key employees have access to necessary medical care without relying on external insurance providers.
