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.
Pennsylvania Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document outlining the details and framework for providing self-insured medical payment plans specifically for key employees within a corporation based in Pennsylvania. A self-insured medical payment plan refers to a system where the corporation assumes the financial risk of providing healthcare benefits to its key employees directly, instead of purchasing traditional insurance coverage from a third-party insurer. This arrangement allows corporations to have more control over their healthcare expenses and tailor the benefits to suit the specific needs of their key employees. The corporate resolution serves as an official record of the corporation's decision to establish such a self-insured medical payment plan. It highlights the key features, responsibilities, and obligations surrounding the plan. Some relevant keywords associated with Pennsylvania Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees include: 1. Pennsylvania corporate resolution: This refers to the specific document that records the corporation's decision to establish a self-insured medical payment plan for key employees. It is a legally binding resolution that outlines the corporation's intent. 2. Self-insured medical payment plan: This defines the type of healthcare benefits arrangement being established. It signifies that the corporation will assume the financial risk and directly pay for the medical expenses of its key employees instead of purchasing insurance coverage. 3. Key employees: In this context, key employees refer to individuals within the corporation who hold crucial positions and contribute significantly to the company's success. The plan typically includes top-level executives and other high-ranking employees deemed vital to the organization's operations or future growth. 4. Corporate healthcare benefits: This highlights the focus of the resolution, which is to establish a comprehensive medical payment plan for the key employees. The plan may cover a range of benefits, such as hospitalization, surgeries, doctor visits, medication, and other medical services deemed necessary for the employees. It's important to note that there may be variations or different types of Pennsylvania Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, depending on the specific needs and requirements of the corporation. Some variations could include the level of benefits provided, eligibility criteria for key employees, cost-sharing arrangements, or the inclusion of additional wellness programs and initiatives. It is recommended for corporations considering such self-insured medical payment plans to consult with legal professionals or experts well-versed in employee benefits to ensure compliance with relevant laws and regulations.
