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.
New Jersey Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legally binding document that outlines the establishment of a self-insured medical payment plan specifically designed for key employees in a corporate setting. This resolution is particularly relevant for companies located in New Jersey and aims to provide comprehensive healthcare coverage for key executives and employees. The resolution serves as a formal agreement within the organization, detailing the terms, provisions, and administration of the self-insured medical payment plan. It is crucial for companies to create such a plan to attract and retain top talent, ensuring that key employees receive the best medical benefits available. By opting for a self-insured medical payment plan, companies take on the financial risk associated with providing healthcare coverage directly to their key employees, rather than relying on traditional insurance providers. This often allows corporations to have more control over the benefits provided, tailoring them to fit the unique needs and preferences of their executives. The New Jersey Corporate Resolution typically includes various clauses and provisions. These may include the definition of key employees, eligibility criteria for participation, contributions from the corporation and employees, coverage details, plan limits, and procedures for claims processing and reimbursement. Furthermore, within the realm of New Jersey Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, there may be additional variations depending on the company's specific requirements. Some possible types to consider are: 1. Comprehensive Medical Payment Plan: This type of resolution establishes a self-insured plan that covers a wide range of medical expenses, including hospitalization, surgeries, doctor visits, prescription medications, and preventative care. 2. Supplemental Medical Payment Plan: In some cases, companies may already provide basic healthcare coverage through a traditional insurance plan. This resolution would establish a self-insured plan to supplement the existing coverage, offering additional benefits or filling gaps in the current plan. 3. Specialty Medical Payment Plan: Certain key employees may require specialized medical coverage due to the nature of their work or specific healthcare needs. A specialty resolution would address these unique requirements, ensuring comprehensive coverage for specialized treatments, therapies, or consultations. In conclusion, the New Jersey Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is an essential document that enables corporations to provide comprehensive healthcare coverage directly to their top executives and employees. By self-insuring, companies can customize benefits, control costs, and attract and retain key talent within their organization. Various types of resolutions exist to address different company needs and requirements, ensuring that key employees receive the optimal medical benefits they deserve.
