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.
Oregon Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees Introduction: An Oregon 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 important employees within a corporation. This resolution ensures that key employees receive comprehensive medical coverage and appropriate financial assistance in case of unforeseen medical expenses. By offering a self-insured plan, the corporation takes on the financial risk associated with providing medical benefits directly, rather than relying on an external insurance provider. This gives the corporation greater control over the benefits offered and allows customization to suit the needs of its key employees. Procedure: The process begins with the adoption of this resolution by the corporation’s board of directors, to formally establish the self-insured medical payment plan. This resolution outlines the objectives, eligibility criteria, coverage details, funding mechanism, and the authority responsible for administering the plan. Coverage and Benefits: The Oregon Corporate Resolution provides key employees with a range of medical coverage options. It may include hospital stays, surgical treatments, prescription drugs, emergency services, preventive care, mental health services, and other relevant medical expenses. The resolution specifies the limits, deductibles, co-pays, and other cost-sharing measures associated with these benefits. Additionally, it may outline provisions for dental, vision, and supplementary coverages, depending on the corporation's discretion. Eligibility Criteria: The resolution sets forth specific eligibility criteria that must be satisfied before key employees can enroll in the plan. These criteria may include holding executive or management positions, meeting specific performance metrics, or being in a certain salary bracket. By establishing clear eligibility guidelines, the corporation ensures that only deserving employees have access to the self-insured medical payment plan. Funding and Administration: The resolution details the funding arrangement for the self-insured plan. It may indicate whether funds will be allocated from the corporation's own reserves or require additional contributions from key employees. Moreover, it designates a responsible authority or committee to administer the plan. This committee oversees the day-to-day operations, coordinates with medical service providers, processes claims, and resolves any issues or disputes that may arise. Types Variations of Oregon Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees: 1. Oregon Corporate Resolution Establishing a Self-insured Medical Payment Plan for Executive Key Employees: This resolution is specifically tailored for high-level executives within the corporation, offering them enhanced medical benefits due to their strategic importance in driving business growth. 2. Oregon Corporate Resolution Establishing a Self-insured Medical Payment Plan for Management Key Employees: Geared towards managers and supervisors, this resolution generally provides comprehensive medical coverage to key personnel who are critical to the day-to-day operations and decision-making processes of the corporation. 3. Oregon Corporate Resolution Establishing a Self-insured Medical Payment Plan for Technical Key Employees: This variation caters to technical experts or employees with specialized skills. It recognizes their strategic value and offers a medical payment plan that suits their unique needs and addresses potential risks associated with their roles. Conclusion: By adopting an Oregon Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, corporations in Oregon can provide comprehensive medical coverage tailored to the specific needs of their valuable workforce. This resolution ensures that key employees receive the necessary healthcare benefits in a cost-effective and flexible manner, empowering them to contribute to the company's success with peace of mind about their medical well-being.
