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.
Connecticut Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the processes and guidelines for a company's self-insured medical payment plan designed specifically for key employees. This resolution allows the company to provide healthcare coverage to its top-tier employees, thereby ensuring their well-being and attracting and retaining talent. A self-insured medical payment plan is a healthcare coverage arrangement wherein the company assumes the financial risk of providing healthcare benefits to its employees rather than purchasing insurance from an external provider. By establishing such a plan, companies gain greater control over their healthcare expenses and can potentially save costs. The Connecticut Corporate Resolution serves as an official agreement and approval by the company's board of directors or shareholders. It provides the necessary legal framework for establishing and administering the self-insured medical payment plan in compliance with Connecticut state laws and regulations. Some keywords relevant to this topic include: 1. Self-insured medical payment plan: Refers to the arrangement where the company takes on the financial responsibility of providing healthcare benefits to its key employees. 2. Connecticut corporate resolution: An official document adopted by a company's board of directors or shareholders in Connecticut, outlining the specifics of the self-insured medical payment plan for key employees. 3. Key employees: Refers to individuals within the organization who hold critical positions and are crucial to the company's success. 4. Healthcare coverage: Encompasses the range of medical benefits and services provided to key employees under the self-insured medical payment plan. 5. Cost savings: Highlights the potential financial advantages associated with self-insured plans, as companies can avoid premiums and instead pay for healthcare claims directly. 6. Compliance: Emphasizes the need for the self-insured medical payment plan to adhere to relevant Connecticut state laws and regulations governing employee healthcare coverage. 7. Board of directors/shareholders approval: Represents the necessary endorsement by the company's governing body to implement the self-insured medical payment plan. Types of Connecticut Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees can vary depending on the specific needs and requirements of the company. Some possible variations could include: 1. High-deductible health plans: These plans require employees to pay a significant portion of their medical expenses before the insurance coverage kicks in, thereby encouraging cost-conscious healthcare decision-making. 2. Health reimbursement arrangements (HRA): With Has, the company reimburses employees for qualified medical expenses up to a set limit, providing more control over healthcare expenses. 3. Health savings accounts (HSA): Has allowed employees to contribute pre-tax funds to cover their medical expenses, providing a triple tax advantage and potential long-term investment opportunities. 4. Hybrid self-insured plans: These plans combine self-insured components with specific stop-loss insurance coverage to mitigate the risk associated with high-cost medical claims. Overall, the Connecticut Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a comprehensive legal document that enables companies to offer tailored healthcare benefits to their most valuable employees while maintaining cost control and compliance with state regulations.
