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.
Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees A Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a legally binding document that specifies the establishment and management of a self-insured medical payment plan for key employees of a corporation based in Kentucky. This resolution outlines the terms and conditions under which the medical payment plan will function, ensuring that key employees receive adequate healthcare coverage. Keywords: Kentucky, Corporate Resolution, Self-insured Medical Payment Plan, Key Employees In Kentucky, corporations often choose to establish self-insured medical payment plans to provide comprehensive healthcare coverage for their key employees. By opting for self-insurance, corporations take on the responsibility of directly funding and managing the medical payment plan, allowing greater control over the healthcare benefits provided to their employees. This corporate resolution, specific to Kentucky, sets forth the guidelines and procedures for implementing and maintaining a self-insured medical payment plan. It is essential for the corporation's board of directors to formally adopt this resolution to ensure legal compliance and clarity in managing the healthcare benefits for their key employees. The Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees typically includes important details such as eligibility criteria for key employees, coverage options, funding mechanisms, claims administration, and regulatory compliance requirements. The resolution highlights the corporation's commitment to providing adequate healthcare coverage to its key employees, demonstrating a proactive approach to attracting and retaining top talent. Different types or variations of a Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees may arise based on the specific needs and goals of the corporation. These variations can include plan design options, such as different coverage levels or deductible amounts, as well as any additional features or benefits unique to the corporation. It is crucial to consult with legal and insurance professionals when drafting or modifying a Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees. These professionals can help ensure compliance with state and federal regulations, protect the corporation's interests, and implement effective risk management strategies. In conclusion, a Kentucky Corporate Resolution Establishing a Self-insured Medical Payment Plan for Key Employees is a meticulous and legally binding document that facilitates the creation and management of a self-insured medical payment plan. By adopting this resolution, corporations in Kentucky can provide comprehensive healthcare coverage to their key employees while maintaining control over the plan's operation and costs.
