Becker’s Hospital Review examines SullivanCotter’s latest Compensation Insight in the article “Report Outlines Healthcare Reform’s Effect on Executive Compensation”

Section 125 of the Internal Revenue Code provides a framework for employee tax-advantaged benefits. Within Section 125 is a prohibition that disallows discrimination in favor of highly compensated individuals. This poses a potential risk for employers who provide their executives with “richer” health benefits than other employees. For instance, executives are often provided continued healthcare coverage through the severance period, a benefit that is not typically offered to other employees.

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