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.
A North Dakota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines a company's decision to self-insure its medical payment plan specifically for its key employees in the state of North Dakota. This resolution serves as a formal agreement authorized by the corporate board or shareholders to implement a self-funded health coverage option for designated key employees within the organization. The self-insured medical payment plan is an alternative to traditional health insurance plans where the company takes on the financial risk of providing healthcare coverage directly to its key employees. By assuming the role of the insurer, the company can potentially save costs on premiums and have greater control over the design and administration of the medical payment plan. However, self-insuring also requires careful financial planning and risk management to ensure adequate funds are available to cover medical expenses. In North Dakota, there may be different variations of the corporate resolution depending on the specific requirements and preferences of each company. Some potential types of North Dakota Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees include: 1. Comprehensive Coverage Resolution: This type of resolution establishes a broad self-insured medical payment plan that covers all eligible key employees within the organization. It outlines the scope of coverage, eligibility criteria, contribution rates, and the process for submitting and reimbursing medical claims. 2. Limited Coverage Resolution: In certain cases, a company may decide to provide self-insured medical coverage to only a specific group of key employees, such as top executives or high-ranking professionals. This resolution would define the eligibility criteria and coverage details tailored to this particular group. 3. Hybrid Coverage Resolution: Some companies may opt for a combination of self-insurance and traditional insurance plans. This resolution would outline the specific arrangement, such as providing self-insured coverage for certain medical expenses while utilizing external insurance for other types of healthcare services. When drafting a North Dakota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, it is crucial to consider various legal and financial aspects to ensure compliance with state regulations and protect both the company and its key employees. Seeking legal counsel is highly recommended customizing the resolution according to the company's unique requirements and to ensure all necessary provisions are included. Keywords: North Dakota, corporate resolution, self-insured, medical payment plan, key employees, health coverage, self-funded, healthcare, insurance, financial risk, costs, premiums, administration, eligibility criteria, claims, comprehensive coverage, limited coverage, hybrid coverage, legal counsel.
