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.
South Dakota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the framework and guidelines for creating a self-funded healthcare payment program for important personnel within a corporation operating in South Dakota. This plan grants eligible key employees access to medical benefits while also allowing the company to assume the financial risk associated with providing these benefits. Keywords: South Dakota, corporate resolution, self-insured medical payment plan, key employees, self-funded healthcare, benefits, financial risk. Types of South Dakota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees: 1. Standard Self-insured Medical Payment Plan: This type of resolution establishes a self-funded medical payment plan for key employees that covers a range of healthcare expenses. It outlines the responsibilities of the company, eligibility criteria for key employees, and the procedures for claiming/reimbursement. 2. Comprehensive Key Employee Medical Benefit Plan: This resolution establishes a comprehensive self-insured medical benefit plan that goes beyond basic healthcare coverage. It may include additional benefits like dental, vision, mental health, and prescription drug coverage for key employees. 3. Flexible Spending Key Employee Medical Plan: This type of resolution establishes a self-insured medical payment plan with flexible spending options for key employees. It allows them to allocate a portion of their pre-tax salary towards a healthcare spending account, which can be used to cover eligible medical expenses. 4. High-Deductible Health Plan for Key Employees: This resolution creates a self-insured medical payment plan with a high-deductible health plan (DHP) option for key employees. An DHP generally has lower monthly premiums but higher deductibles, allowing key employees to have more control over their healthcare spending. 5. Health Reimbursement Arrangement (HRA) for Key Employees: This type of resolution establishes a self-insured medical payment plan utilizing a health reimbursement arrangement. Key employees can receive reimbursements for qualified medical expenses as determined by the HRA terms. These are some examples of different types of South Dakota Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees. Companies can choose the most appropriate plan based on their specific needs and the well-being of their valued personnel.
