Don't get mad

[JG EA]

...Section 105(b) plans cannot discriminate against any employee. But that does not mean the reimbursements have to be for the same expense. For example, one employee can submit an insurance bill to the employer for reimbursement, the next can submit a bill for prescription drugs, another can submit a bill for the dentist, etc. etc. Maybe the S corp shareholder is the only one having the insurance coverage reimbursed, while other employees are covered under their spouses plan. In that case, they might only need the deductible portion of their medical bills reimbursed by the S corp.

Begging your pardon in advance, please do not heave big sighs at this question.

Can an S Corp set up a medical reimbursement plan by
1. writing a letter to all employees that qualify (not part time, etc.)?
2. just include "Medical Insurance" and not the other medical bills someone may have who does not have medical insurance?
3. does the money reimbursed have to be equal to the reimbursement the shareholder/employee gets?

[Bees Knees]

Reg. Sec. 1.105-5 says, “In general, an accident or health plan is an arrangement for the payment of amounts to employees in the event of personal injuries or sickness. A plan may cover one or more employees, and there may be different plans for different employees or classes of employees. An accident or health plan may be either insured or noninsured, and it is not necessary that the plan be in writing or that the employee's rights to benefits under the plan be enforceable. However, if the employee's rights are not enforceable, an amount will be deemed to be received under a plan only if, on the date the employee became sick or injured, the employee was covered by a plan (or a program, policy, or custom having the effect of a plan) providing for the payment of amounts to the employee in the event of personal injuries or sickness, and notice or knowledge of such plan was reasonably available to the employee. It is immaterial who makes payment of the benefits provided by the plan. For example, payment may be made by the employer, a welfare fund, a State sickness or disability benefits fund, an association of employers or employees, or by an insurance company."