[19] The Rosco Corporation has a medical reimbursement plan under which employees are reimbursed for their medical expenses directly by the corporation. In order for the amount received by a highly compensated employee to be entirely excluded from income, which of the following is true?

A. A self-insured plan may not discriminate, but an insured plan may.

B. The plan must be insured.

C. All employees must be covered by the plan.

D.Both diagnostic medical procedures and those to treat, cure, or test a known illness must be provided in a nondiscriminatory manner.

[20] Which of the following qualifications is not necessary in an employers self-insured accident and health plan to prevent the plan from being considered discriminatory?

A. All benefits provided for participants who are highly compensated individuals must be provided for all other participants.

B. The plan may not discriminate in favor of highly compensated individuals as to eligibility to participate.

C. All employees having completed 3 years of service must be participants in the plan.

D. The plan must not discriminate in favor of highly compensated individuals as to benefits provided under the plan.