need help please explain
Group Plan
First , let us understand that a group plan is an employee welfare plan to provide benefits and medical care to employees and their dependent families. It is usually maintained by the employer or some organization like a union.
Employers do have liberty to set restrictions on the benefits and their amount they wish to offer as long as these restrictions are based on employee-based classification and are not discriminatory in nature.
Restrictions
Therefore, groups can be defined using employment based criteria such as part-time or full-time employment (part-timers are often excluded) or level of the employee (e.g. management or worker). Legally, inequality and discrimination is not allowed on factors such as sex, race and similar factors. Thus the employer can offer different group plans based on employee classification.
The employer can set defining criteria for eligibility or restrictions based on certain factors such as:
or any other criteria which is employment based and not discriminatory in nature.
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