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.
A Virginia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legally binding document adopted by a corporation registered in the state of Virginia. This resolution outlines the company's decision to create and maintain a self-insured medical payment plan specifically for key employees within the organization. Such a plan allows the corporation to take on the financial risk associated with providing medical coverage for these key executives or high-level personnel. By implementing a self-insured medical payment plan, a corporation can often exercise more control over healthcare expenses for its key employees. This resolution is designed to establish the framework and guidelines for the plan, detailing the responsibilities, benefits, and coverage provided to key employees. The plan typically covers expenses related to medical treatment, hospitalization, surgical procedures, prescription drugs, and other necessary medical services. Keywords: Virginia, Corporate Resolution, Self-insured, Medical Payment Plan, Key Employees, Healthcare Expenses, Control, Benefits, Coverage, Responsibilities. Different types of Virginia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may include variations based on specific employee settings, such as: 1. Executive Self-Insured Medical Payment Plan: This type of plan would exclusively cover top-level executives and may offer additional benefits and coverage compared to a standard plan. 2. Management Self-Insured Medical Payment Plan: This plan might be tailored to cover key managerial positions within the corporation, including department heads and senior managers. 3. High-Level Employee Self-Insured Medical Payment Plan: This type of plan is designed to provide coverage for employees holding crucial roles but may have different eligibility requirements than the executive or management plans. 4. Customized Self-Insured Medical Payment Plan: In some cases, corporations may have unique requirements or specific categories of employees that necessitate a custom plan to address their healthcare needs adequately. In such instances, a customized plan can be created to suit their specific circumstances. These various types of Virginia Corporate Resolution Establishing a Self-insured Medical Payment Plans for Key Employees allow corporations to address the varying healthcare needs and roles of their key personnel while maintaining control and managing costs effectively.
