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.
Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the establishment and management of a self-insured medical payment plan for key employees in a corporation based in Hawaii. This resolution is typically crafted and adopted by the company's board of directors or governing body and serves as an official agreement to administer and fund healthcare benefits for designated key employees. A self-insured medical payment plan enables the company to take on the financial risk of providing healthcare coverage directly, rather than relying on a traditional health insurance provider. This can offer certain advantages, such as increased control over plan design, cost savings, and flexibility in tailoring benefits to meet the specific needs of key employees. The resolution typically includes detailed provisions related to the plan's structure, administration, funding, and benefits. It outlines the eligibility criteria for key employees who will be covered under the plan, such as top-level management or executives, and may specify any limitations or exclusions. It is important to note that different types or variations of the Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may exist depending on the specific requirements of each company. For example, some resolutions may focus on providing comprehensive healthcare coverage, including medical, dental, and vision benefits, while others may be more limited in scope. Additionally, certain resolutions may outline additional provisions such as the establishment of a trust fund to ensure adequate funding for the plan or requirements for regular reporting and auditing of the plan's financials. In conclusion, the Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that empowers a company to take control of providing healthcare benefits to its key employees. It outlines the terms and conditions of the plan, ensuring compliance with applicable laws and regulations. The resolution serves as a foundation for the company's self-funded healthcare program and helps ensure the well-being of its key workforce.Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the establishment and management of a self-insured medical payment plan for key employees in a corporation based in Hawaii. This resolution is typically crafted and adopted by the company's board of directors or governing body and serves as an official agreement to administer and fund healthcare benefits for designated key employees. A self-insured medical payment plan enables the company to take on the financial risk of providing healthcare coverage directly, rather than relying on a traditional health insurance provider. This can offer certain advantages, such as increased control over plan design, cost savings, and flexibility in tailoring benefits to meet the specific needs of key employees. The resolution typically includes detailed provisions related to the plan's structure, administration, funding, and benefits. It outlines the eligibility criteria for key employees who will be covered under the plan, such as top-level management or executives, and may specify any limitations or exclusions. It is important to note that different types or variations of the Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may exist depending on the specific requirements of each company. For example, some resolutions may focus on providing comprehensive healthcare coverage, including medical, dental, and vision benefits, while others may be more limited in scope. Additionally, certain resolutions may outline additional provisions such as the establishment of a trust fund to ensure adequate funding for the plan or requirements for regular reporting and auditing of the plan's financials. In conclusion, the Hawaii Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that empowers a company to take control of providing healthcare benefits to its key employees. It outlines the terms and conditions of the plan, ensuring compliance with applicable laws and regulations. The resolution serves as a foundation for the company's self-funded healthcare program and helps ensure the well-being of its key workforce.
