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.
Rhode Island Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees A Rhode Island Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document created by a corporation registered in Rhode Island to outline the establishment of a self-insured medical payment plan specifically for key employees. This resolution serves as the official framework for the corporation to provide medical payment benefits to its key employees without relying on external insurance providers. By opting for a self-insured medical payment plan, a corporation can assume the financial risk associated with providing medical benefits to its key employees. This approach allows the corporation to have direct control over the plan, customize it according to their specific requirements, and potentially save costs by avoiding the administration fees charged by insurance companies. The Rhode Island Corporate Resolution will typically include specific details about the plan, such as eligibility criteria for key employees, coverage limits, reimbursement procedures, and the establishment of a fund to finance the payment of medical expenses. It may also state the appointment of a plan administrator or a committee responsible for overseeing the plan's operations and ensuring legal compliance. The resolution may also outline the responsibilities of key employees, such as reporting all medical expenses accurately and on time, cooperating with the plan administrator, and providing any necessary documentation for reimbursement purposes. Different variations of Rhode Island Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees may exist, depending on the specific requirements of different corporations. Some variations may focus on providing comprehensive medical coverage, while others may be limited to specific types of medical expenses, such as hospitalization, surgery, or prescription drugs. It is important for corporations in Rhode Island considering the establishment of a self-insured medical payment plan for key employees to consult with legal professionals specializing in employee benefits and health insurance. These attorneys can ensure that the resolution adheres to state laws and regulations, and help draft a document that safeguards the interests of both the corporation and its key employees.Rhode Island Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees A Rhode Island Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document created by a corporation registered in Rhode Island to outline the establishment of a self-insured medical payment plan specifically for key employees. This resolution serves as the official framework for the corporation to provide medical payment benefits to its key employees without relying on external insurance providers. By opting for a self-insured medical payment plan, a corporation can assume the financial risk associated with providing medical benefits to its key employees. This approach allows the corporation to have direct control over the plan, customize it according to their specific requirements, and potentially save costs by avoiding the administration fees charged by insurance companies. The Rhode Island Corporate Resolution will typically include specific details about the plan, such as eligibility criteria for key employees, coverage limits, reimbursement procedures, and the establishment of a fund to finance the payment of medical expenses. It may also state the appointment of a plan administrator or a committee responsible for overseeing the plan's operations and ensuring legal compliance. The resolution may also outline the responsibilities of key employees, such as reporting all medical expenses accurately and on time, cooperating with the plan administrator, and providing any necessary documentation for reimbursement purposes. Different variations of Rhode Island Corporate Resolutions Establishing a Self-insured Medical Payment Plan for Key Employees may exist, depending on the specific requirements of different corporations. Some variations may focus on providing comprehensive medical coverage, while others may be limited to specific types of medical expenses, such as hospitalization, surgery, or prescription drugs. It is important for corporations in Rhode Island considering the establishment of a self-insured medical payment plan for key employees to consult with legal professionals specializing in employee benefits and health insurance. These attorneys can ensure that the resolution adheres to state laws and regulations, and help draft a document that safeguards the interests of both the corporation and its key employees.
