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.
Puerto Rico Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees A Puerto Rico Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a formal document adopted by a Puerto Rican corporation to create a self-insured medical payment plan specifically tailored for key employees. This resolution outlines the details, guidelines, and parameters for the implementation and administration of the plan. Keywords: Puerto Rico, corporate resolution, self-insured, medical payment plan, key employees Different types of Puerto Rico Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may include: 1. Comprehensive Medical Plan: This type of resolution establishes a comprehensive self-insured medical payment plan for key employees, covering a wide range of medical services, including but not limited to doctor's visits, hospitalizations, surgeries, medications, and preventive care. 2. High-Deductible Health Plan (DHP): This resolution may create a self-insured medical payment plan with a high deductible, designed to reduce premium costs for the corporation while providing key employees with coverage for catastrophic medical expenses. This type of plan is often paired with a Health Savings Account (HSA) to help employees manage their healthcare costs. 3. Health Reimbursement Arrangement (HRA): A corporate resolution establishing an HRA as a self-insured medical payment plan for key employees allows the corporation to reimburse employees' eligible medical expenses. This resolution outlines the contribution limits, eligible expenses, and other guidelines for the HRA. 4. Flexible Spending Account (FSA): A Puerto Rico Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may also create a flexible spending account, enabling key employees to set aside pre-tax funds to cover qualified medical expenses. The resolution would outline the FSA contribution limits, eligible expenses, and other important details. 5. Limited Scope Medical Plan: In some cases, a corporation may choose to establish a limited scope self-insured medical payment plan for key employees. This plan typically covers a specific set of medical services, such as dental, vision, or mental health, while excluding other areas of healthcare. Overall, a Puerto Rico Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a crucial document that ensures the corporation is adequately providing healthcare coverage to its key employees while outlining the specific terms and conditions of the self-insured plan.
