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.
Title: Minnesota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees Keywords: Minnesota, corporate resolution, self-insured, medical payment plan, key employees, types Introduction: A Minnesota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a comprehensive document that allows corporations in Minnesota to establish a self-funded healthcare program for their key employees. This resolution outlines the terms, guidelines, and procedures for administering medical payments, ensuring that key employees receive the required benefits while maintaining control over healthcare expenses. Types of Minnesota Corporate Resolutions Establishing a Self-insured Medical Payment Plan: 1. Group Health Insurance: This type of resolution involves a company opting to self-insure its key employees' medical payment plan instead of relying on traditional group health insurance. By assuming the financial risk, the corporation gains more flexibility in designing a tailored benefit program for their key employees. 2. Health Savings Account (HSA) Plan: Some Minnesota corporations choose to set up a self-insured medical payment plan in the form of Health Savings Accounts (Has) for key employees. This type of plan offers tax advantages and allows employees to take control of their healthcare spending by contributing to their HSA. 3. Health Reimbursement Arrangement (HRA) Plan: An HRA-based self-insured medical payment plan allows a company to allocate funds to its key employees to cover qualified medical expenses. The reimbursements are tax-free, providing an attractive incentive for employees while granting the corporation more control over healthcare costs. 4. Self-Insured Dental and Vision Plans: Minnesota corporations can also extend the self-insured medical payment plan to include dental and vision benefits for their key employees. This tailored approach enables companies to offer comprehensive coverage options to ensure the overall well-being of their key personnel. Components of a Minnesota Corporate Resolution Establishing a Self-insured Medical Payment Plan: 1. Purpose and Scope: The resolution should define the purpose and scope of the self-insured medical payment plan to ensure clarity and alignment with the corporation's goals and objectives. 2. Funding and Budgeting: Specify how the plan will be funded, including the establishment of a separate account or trust within the company's financial structure. This section outlines the budgeting process and how funds will be allocated to cover medical expenses. 3. Administration and Claims: Detail the responsibilities and duties of the plan administrators, including the process for claims submission, review, and reimbursement. This section may also mention any third-party administrators or healthcare providers involved. 4. Eligibility and Benefits: Outline the criteria for determining key employees eligible for participation and describe the benefits provided through the self-insured medical payment plan. This includes coverage details, contribution limits, and any restrictions or exclusions. 5. Reporting and Compliance: Address the reporting requirements, compliance obligations, and regulatory guidelines that the corporation must follow to ensure legal and ethical compliance with Minnesota state laws. Conclusion: Minnesota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees empowers corporations to take control of their key employees' healthcare benefits while managing costs effectively. By embracing self-insurance, companies can tailor benefits, improve financial control, and provide essential medical coverage tailored to their employees' specific needs.
