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.
Description: A Virgin Islands Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a formal legal document that outlines the establishment of a self-insured medical payment plan specifically designed for key employees within a corporation registered in the Virgin Islands. This resolution serves as a binding agreement that governs the terms, conditions, and obligations related to the provision of healthcare coverage for these essential individuals. Keywords: 1. Virgin Islands: This resolution pertains to companies registered in the Virgin Islands jurisdiction. 2. Corporate Resolution: It refers to a formal decision made by a corporation's board of directors or shareholders regarding a specific matter, in this case, the establishment of a self-insured medical payment plan. 3. Self-insured: The plan is self-funded by the corporation, meaning that the company assumes the financial risk of providing healthcare coverage to its key employees instead of relying on an insurance carrier. 4. Medical Payment Plan: It signifies a comprehensive payment arrangement devised to cover the medical expenses of key employees. It may include costs related to hospitalization, doctor visits, prescription medications, diagnostics, and other healthcare services. 5. Key Employees: This term represents individuals who hold crucial positions within the corporation and whose expertise and contributions are considered pivotal to the company's success. Types of the Virgin Islands Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees: 1. Basic Key Employee Medical Payment Plan: This resolution outlines the fundamental structure and guidelines of the self-insured medical payment plan, covering the essential healthcare needs of key employees. 2. Enhanced Key Employee Medical Payment Plan: This resolution details an upgraded version of the self-insured medical payment plan, encompassing additional benefits, such as enhanced coverage for specialized treatments or services, increased annual limits, or broader network options for medical providers. 3. Temporary Key Employee Medical Payment Plan: This resolution addresses the establishment of a temporary self-insured medical payment plan for key employees, aiming to provide coverage during a specific period, such as a project duration or while awaiting enrollment in a permanent plan. 4. Supplemental Key Employee Medical Payment Plan: This resolution focuses on the creation of a supplementary self-insured medical payment plan that augments existing healthcare coverage for key employees, providing additional benefits or filling gaps in the primary plan's coverage. It is important to note that the specific types and variations of the Virgin Islands Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may vary based on the unique needs, preferences, and regulations of each corporation.
