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.
Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the decision and establishment of a self-insured medical payment plan specifically for key employees within a Texas corporation. This resolution is aimed at providing medical coverage to key employees without relying on third-party insurance providers. Key employees hold crucial positions within the organization and are vital to its success. In recognition of their contributions, the company aims to offer them comprehensive medical insurance coverage through a self-insured plan. By opting for a self-insured plan, the corporation assumes the financial risk associated with providing medical benefits directly to key employees, rather than purchasing traditional insurance coverage. The Texas corporate resolution for establishing a self-insured medical payment plan for key employees serves to outline the details of this arrangement. It defines the scope and eligibility criteria for key employees, determines the funding mechanism for the plan, and sets forth specific guidelines for the administration and management of the program. The resolution is typically adopted by the board of directors or relevant corporate decision-making body. Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may differ in types or variations based on specific factors such as: 1. Plan Design: This could pertain to the level of coverage provided, including deductibles, co-pays, and benefits offered within the self-insured medical payment plan. The resolution may outline the plan design as per the requirements of the key employees and their families while ensuring compliance with applicable Texas laws and regulations. 2. Funding Mechanism: The resolution might specify the method and source of funding for the self-insured plan. It can detail whether the company will utilize its own funds solely or set aside a designated budget for this purpose. The resolution may also determine if the company will engage in stop-loss insurance to limit its financial exposure. 3. Governance and Administration: Different variations of the resolution may outline the administrative responsibilities and governance structure of the self-insured medical payment plan. It could designate an internal committee or third-party administrator responsible for overseeing claims processing, provider networks, and legal compliance. Additionally, it may establish measures to regularly evaluate the plan's performance and financial viability. 4. Employee Communication: The resolution could outline the communication strategy to inform eligible key employees about the self-insured plan, including providing comprehensive explanations of the benefits, coverage limitations, claims procedures, and any other relevant information necessary for them to utilize the plan effectively. By adopting a Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, corporations in Texas can provide specialized and comprehensive medical coverage to their valuable key employees. Tailoring the resolution to the specific needs of the company and its workforce ensures compliance with Texas laws while efficiently managing healthcare costs and offering valuable benefits to key employees.Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legal document that outlines the decision and establishment of a self-insured medical payment plan specifically for key employees within a Texas corporation. This resolution is aimed at providing medical coverage to key employees without relying on third-party insurance providers. Key employees hold crucial positions within the organization and are vital to its success. In recognition of their contributions, the company aims to offer them comprehensive medical insurance coverage through a self-insured plan. By opting for a self-insured plan, the corporation assumes the financial risk associated with providing medical benefits directly to key employees, rather than purchasing traditional insurance coverage. The Texas corporate resolution for establishing a self-insured medical payment plan for key employees serves to outline the details of this arrangement. It defines the scope and eligibility criteria for key employees, determines the funding mechanism for the plan, and sets forth specific guidelines for the administration and management of the program. The resolution is typically adopted by the board of directors or relevant corporate decision-making body. Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may differ in types or variations based on specific factors such as: 1. Plan Design: This could pertain to the level of coverage provided, including deductibles, co-pays, and benefits offered within the self-insured medical payment plan. The resolution may outline the plan design as per the requirements of the key employees and their families while ensuring compliance with applicable Texas laws and regulations. 2. Funding Mechanism: The resolution might specify the method and source of funding for the self-insured plan. It can detail whether the company will utilize its own funds solely or set aside a designated budget for this purpose. The resolution may also determine if the company will engage in stop-loss insurance to limit its financial exposure. 3. Governance and Administration: Different variations of the resolution may outline the administrative responsibilities and governance structure of the self-insured medical payment plan. It could designate an internal committee or third-party administrator responsible for overseeing claims processing, provider networks, and legal compliance. Additionally, it may establish measures to regularly evaluate the plan's performance and financial viability. 4. Employee Communication: The resolution could outline the communication strategy to inform eligible key employees about the self-insured plan, including providing comprehensive explanations of the benefits, coverage limitations, claims procedures, and any other relevant information necessary for them to utilize the plan effectively. By adopting a Texas Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees, corporations in Texas can provide specialized and comprehensive medical coverage to their valuable key employees. Tailoring the resolution to the specific needs of the company and its workforce ensures compliance with Texas laws while efficiently managing healthcare costs and offering valuable benefits to key employees.
