Health Reimbursement Arrangement - Nondiscrimination Rules Violated?

[jukeboy56]

Here's the arrangement contemplated: The employer will provide and pay for 75% of premiums for a high deductible medical insurance policy for all employees except the highly compensated and 5% shareholders, who will not be included in the HRA. The employer will also pay for a portion of deductible expenses for those covered employees by paying the provider directly for covered expenses up to a specified dollar amount.

Since the highly compensated and 5% shareholders aren't covered by the HRA, the employer wants to pay 100% of their premiums.

Does this violate any nondiscrimination rules or ERISA?

[Guest b2kates]

nondiscrimination rules only apply to cafeteria arrangements and 105(h) self funded medical plans.

your scenario does not state that the payments are through a cafeteria plan and if paid directly by the employer would not violate any discrimination rules.