Uninsured Or Insured
Payments from the general funds of the business to reimburse the employee for his or her medical expenses is called an uninsured or self-insured plan.
When the corporation pays premiums to an insurance company and thereby
shifts the risk to an "unrelated third party," it is called an insured
plan. The nondiscrimination rules do not apply to insured plans.
Treasury Regs. 1. 105 -1 I (b)(1)(ii)
Medical Reimbursement Plans
Highly Compensated Employees
This document was last modified on July 26, 1999
Copyright ©1999, The Jacobs Company, All Rights Reserved