Reimbursement of Medical Expenses - Discrimination Problem

[Christine Roberts]

If an employer establishes a self-insured plan to reimburse former executives and their spouses for medical expenses, is there any way around the Section 105(h) discrimination problem, other than to make the plan available to all former employees?

Or, if the employer simply treats the reimbursement amounts as taxable income to the former employee, would this avoid the Section 105(h) problem entirely?