Company A is a small S-corporation with an employer-provided medical insurance plan. Company A pays all medical insurance premiums and reimburses its employees for out-of-pocket expenses (for deductible, co-pay, etc) over a certain dollar amount.

The stockholders of Company A are also greater than 2% stockholders in Company B. Is Company B required to provide its employees the same coverage as Company A does?

Both companies have probably half a dozen employees, including the stockholders.

You don't state whether Cos. A & B form (i) a controlled group, (ii) an affiliated service group or (iii) otherwise. If (i) or (ii), the benefits provided to the employees of both entities need to be tested together to make sure that the plan does not discriminate.

Of course, this is all silliness if both corps. are S corporations, since the plans need not be discriminating: contributions for the 2% shareholders are not deductible to the corporation but are passed through to the individual anyway (for a partial deduction on their personal returns). Therefore, it is pointless for the plans to cover the 2% shareholders, and without them there is no need to worry about nondiscrimination.