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.
Title: Understanding the District of Columbia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees Keywords: District of Columbia, Corporate Resolution, Self-insured, Medical Payment Plan, Key Employees Introduction: A District of Columbia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a formal document implemented by corporations operating in the District of Columbia (D.C.) to provide comprehensive medical coverage to their valuable key employees. This resolution allows businesses to become self-insured, assuming the risk of healthcare expenses, while ensuring the well-being and loyalty of their key personnel. Types of District of Columbia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees: 1. Basic Self-insured Medical Payment Plan: This type of resolution focuses on essential medical coverage for key employees, including hospitalization, consultations, prescription medications, and basic preventive care. It aims to address key healthcare needs while minimizing financial risks for the corporation. 2. Comprehensive Self-insured Medical Payment Plan: The comprehensive resolution encompasses an extensive range of medical services, offering comprehensive coverage for key employees. It includes benefits such as specialist consultations, diagnostics, outpatient services, mental health treatment, maternity care, and other advanced medical procedures. 3. Executive Self-insured Medical Payment Plan: This specific resolution targets high-ranking executives and senior management personnel. It provides enhanced medical benefits, which often include exclusive access to top-tier hospitals, specialized treatments, concierge medical services, and personalized healthcare management. 4. Family Self-insured Medical Payment Plan: Recognizing the importance of employees' families' well-being, this resolution extends coverage to immediate family members of key employees. It includes spouse, dependent children, and sometimes even parents, offering comprehensive medical care to the entire family unit. 5. Tailored Self-insured Medical Payment Plan: Some corporations prefer to design customized resolutions to meet the unique healthcare needs of their key employees. This flexible approach allows businesses to prioritize specific medical services or add supplementary benefits as per their employees' requirements. Key Elements of a District of Columbia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees: 1. Purpose and Scope: Clearly define the intention, significance, and extent of the self-insured medical payment plan within the corporation. Outline the objectives and expected benefits for key employees. 2. Eligibility Criteria: Specify the criteria for determining which employees qualify as "key employees." This may include job titles, responsibilities, or other relevant factors. 3. Benefits and Coverage: Articulate the extent of coverage, including medical services, diagnostic procedures, treatments, pharmaceuticals, and preventive care to be provided to key employees. 4. Funding Mechanism: Explain the financial strategy for meeting the healthcare expenses, identifying how funds will be allocated and managed for self-insurance purposes. 5. Administration and Governance: Outline the roles and responsibilities of various stakeholders involved in administering and overseeing the self-insured medical payment plan, such as human resources, finance, or a designated committee. 6. Compliance and Reporting: Emphasize the importance of adhering to relevant local, state, and federal laws and regulations governing self-insured medical payment plans. Specify the reporting requirements to ensure legal and financial transparency. Conclusion: The District of Columbia Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees serves as a strategic tool for corporations to ensure comprehensive healthcare coverage for their valuable key personnel. By analyzing the different types of resolutions available and tailoring them to meet specific requirements, businesses can attract and retain top talent while maintaining financial stability and control over healthcare expenses.
