Medical Insurance Premiums for highly compensated employees

[Guest Pat Metallic]

1. Can an employer pay the medical premiums for its highly compensated employees and not for the rank and file?

2. If an employer is permitted to do so, can that plan be a 100% self-funded plan?

[mbozek]

1. There are no non discrimination rules for providing health benefits through insured plans. Only self funded plans are subject to non discriminaton requirements for benefits. See Rev rule 61-146.

2. The non discrimination rules for self funded plans under IRC 105(h) do not apply to the payment of premiums for health insurance.