Health Insurance for Non-Employee Directors on the Board

[waid10]

Is there a way for an employer to provide health insurance for non-employee members of the Board of Directors?

My initial off-the-cuff thoughts are the following obstacles:

- it will be a taxable benefit to non-employees

- can the employer's plan be amended to include non-employees? if not, could a separate plan be created for the directors? if it is a separate plan, would the plan pass nondiscrimination testing?

- would a carrier even insure for this?

- if the employer self-insures and its a separate plan, the group would be so small it could be prohibitively expensive

I am wondering if anyone else has come across this.

Thanks.

[QDROphile]

A company that insures persons other than employees will not be operating under ERISA and will be subject to state insurance laws. That is likely to dispose of the self insurance idea.

[QDROphile]

A company that insures persons other than employees will not be operating under ERISA and will be subject to state insurance laws. That is likely to dispose of the self insurance idea.