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 Nevada Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document drafted by a corporation registered in the state of Nevada to establish a self-insured medical payment plan specifically designed for key employees. This resolution outlines the terms and conditions under which the corporation will provide medical coverage and payment for designated key employees who may not be covered by the regular employee medical insurance plans. One type of Nevada Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may be for executives or high-level managers who play a crucial role in the company's operations. Another type may be for employees who possess unique skills or specialized knowledge that is essential to the company's success. These key employees are usually deemed vital to the overall functioning and growth of the corporation, thus warranting a separate medical payment plan tailored to their specific needs. The resolution typically includes a detailed description of the eligibility criteria for key employees to qualify for the self-insured medical payment plan, such as their position within the company, tenure, or a combination of other factors. It outlines the scope of coverage and the medical expenses that will be covered under the plan. Furthermore, the resolution establishes the rights and obligations of both the corporation and the key employee regarding the self-insured medical payment plan. It stipulates the guidelines for enrollment, coverage limitations, reimbursement procedures, and any necessary reporting or documentation requirements. To ensure compliance with applicable laws and regulations, the resolution may also address compliance with state and federal healthcare laws, privacy laws, and tax considerations related to self-insured medical plans. It may include provisions for periodically reviewing and updating the plan, as well as obtaining necessary licenses or permits. Overall, a Nevada Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a critical legal document that provides a framework for extending specialized medical coverage to key employees. It ensures that the company can recruit and retain top talent by offering robust healthcare benefits tailored to their unique needs and positions within the organization.
