Headlines about "ERISA preemption of state law"
Gathered from the web by the editors at BenefitsLink.com.
Administration Might Consider Additional Federal Regulation of Use of Stop-Loss Insurance
"[T]he Obama administration issued a request for information on whether new rules are needed to make it harder for small employers to choose to self-insure employee health care, citing concerns that this practice could lead to higher costs for small group plans in PPACA's exchanges. While any new rule would not likely be directed at large employers, it would open up discussions to regulate other features of self-insured plans, which could directly impact large employers." (HR Policy Association)
[Official Guidance] Text of Request by IRS, DOL, HHS for Information on Stop Loss Insurance (PDF)
"This document is a request for information regarding the use of stop loss insurance by group health plans and their plan sponsors, with a focus on the prevalence and consequences of stop loss insurance at low attachment points.... Employers and plans that purchase stop loss insurance generally are not subject to State health insurance laws including coverage laws, rating policies, and other State and Federal consumer protections applicable to health insurance, including certain patient protections under the Patient Protection and Affordable Care Act.... It has been suggested that some small employers with healthier employees may self-insure and purchase stop loss insurance policies with relatively low attachment points to avoid being subject to these requirements while exposing themselves to little risk. This practice, if widespread, could worsen the risk pool and increase premiums in the fully insured small group market[.]" (Internal Revenue Service)
Text of Petition for Certiorari: Jurisdiction for Enforcement of State Law Health Insurance Requirements
Blue Cross and Blue Shield of Montana, Inc. v. Fossen (9th Cir. 2011). Issue: "Whether a substantive state-law insurance standard saved from preemption under the insurance saving clause of [ERISA], 29 U.S.C. Section 1144(b)(2)(A), can be enforced through state-law remedies or instead is enforceable exclusively through ERISA's enforcement scheme, 29 U.S.C. Section 1132." (SCOTUSblog)
[Guidance Overview] State-Law Claims Preempted Where COBRA Coverage Was Not Provided under Individual Policy
"This case was fairly straightforward because the employee's COBRA coverage was provided under the employer's plan and not an individual conversion policy. In cases where an individual conversion policy is issued, the law is mixed; some courts have ruled that the individual policy is governed by ERISA because it derives from an ERISA plan, and others have ruled that once an individual conversion policy is in place, it is no longer subject to ERISA." (Thomson Reuters/EBIA)
[Guidance Overview] Learn Elements of ERISA Plan Status to Help Avoid State-Law Claims
"A former employee's failed attempt to call COBRA coverage a "privately paid" policy, rather than an ERISA plan, in order to maintain state-law claims against a group health insurer offers a chance to remind employers about importance of knowing the legal status of their benefit plans." (SmartHR Manager)
[Guidance Overview] Learn Elements of ERISA Plan Status to Help Avoid State-law Claims
"A former employee's ... attempt to call COBRA coverage a "privately paid" policy, rather than an ERISA plan, in order to maintain state-law claims against a group health insurer [failed] .... The [9th Circuit Court of Appeals] didn't buy that argument based upon the evidence the insurer provided that the plan met ERISA standards.... But [the Court noted that] there is a "safe harbor" regulation that exempts plans that would otherwise be ERISA plans from ERISA's reach[.]" (Thompson / SmartHR Manager)
[Guidance Overview] Update on NLRB Posting Requirement; Individual Liability for Supervisors under FMLA; DOL's Final Regs on Pension Plan Fee Disclosures
"The DOL made clear that nothing in the Final Regulations [on Fee Disclosures] should be construed to supersede any provision of state law that governs disclosures by parties that provide the services described in the regulations, except to the extent that such law prevents the application of a requirement of the Final Regulations." (Precept)
Avoid the Common Mistakes Affecting Plan Loans Webcast
Earn CE credit while ERISA expert, Charles Lockwood, JD, LLM, explains the administrative issues that affect plan loans. Have questions? Charles will address them either during or after the webcast. March 22nd at 2pm EST. (ASC)
ERISA Failures and the Erosion of Workers' Rights: The Urgent Need to Protect Private and Public Workers' Pensions and Benefits
"This article seeks to provide a broad overview of the crisis facing the pension and benefits system in the United States and offers some possible solutions. More importantly, the goal is to spur discourse on the urgent need to protect the benefits of all workers, public and private." (Social Science Research Network)
Workers Fight Switch to Church Pension Plans
"[ERISA] has always exempted plans operated directly by churches for their clergy and employees to make it easier for the churches to operate their plans. A 1980 amendment to ERISA clarified that the exemption also applied to church pension boards, which administer group pension plans for church employees. But since then, a growing number of plan sponsors with less-direct ties to religious organizations have been declaring themselves church plans and asking the [IRS] to issue private-letter rulings confirming the exemptions, which free the plans from federal funding requirements." (Thomson Reuters)
[Guidance Overview] The ERISA Litigation Newsletter, January 2012
"This month, [an article takes] a look back at the most significant ERISA litigation decisions of the past year and what they portend for 2012. The article addresses the implications of two major Supreme Court decisions, Cigna Corp. v. Amara and Walmart Stores, Inc. v. Dukes, and developments in 401(k) plan excessive fee and employer stock drop cases. We also focus on a recent Second Circuit decision addressing the issue of when the statute of limitations on benefits claims commences, and its potential implications for both individual and class action benefit claims. As always, be sure to review the section on Rulings, Filings, and Settlements of Interest." (Proskauer Rose LLP)
Cheaper Policies Bought in the Workplace Can Have Drawbacks
"[W]hereas traditional insurance is subject to state laws and disputes can be tried before juries, with the potential for punitive damage awards, policies sold through employers typically fall under [ERISA] -- with a federal judge ruling on disputes and no damages allowed." (The Wall Street Journal)
[Guidance Overview] Federal Court Holds Plaintiff's Recovery of Medical Expenses Paid by ERISA Plan Are Recoverable
"The Defendants filed affirmative defenses including claims that the Plaintiffs' recovery was reduced or barred by the provisions of the Pennsylvania Motor Vehicle Financial Responsbility Law (MVFRL). The Plaintiffs argued that the defenses should be stricken since the medical bills were paid by a self funded ERISA plan which was making a claim for reimbursement. The Plaintiffs filed a Motion in Limine." (InjuryBoard)
[Guidance Overview] Missouri Slayer Law Preempted by ERISA
"The court also questions whether Missouri's Slayer Statute even creates a private right of action, but eventually concludes that it need not decide the case because of its holding on ERISA preemption. The court does allow the Plaintiff to proceed on the ERISA claim and points out that it is not precluded in applying the principles of a Slayer Statute to Plaintiff's ERISA benefits claim." (ERISABoard.com)
[Guidance Overview] ERISA Preempted State Law Negligence and Fiduciary Breach Claims Against TPA
"ERISA preempted a small business owner's claim that a pension third party administrator acted negligently and breached its fiduciary duty with respect to its administration of the owner's '412(i)' plan, the [court] has ruled." (Wolters Kluwer Law & Business / CCH)
Economic Analysis in ERISA Litigation over Fiduciary Duties
"The following post comes . . . from Dr. John Montgomery, Senior Vice President with NERA Economic Consulting, and is based on a NERA publication by Dr. Montgomery which previously appeared in the July, August, and September 2011 issues of the Employment Law Strategist." (The President and Fellows of Harvard College)
[Guidance Overview] The ERISA Litigation Newsletter, December 2011
The newsletter includes the following: Third Circuit Finds 'Inequitable' The Enforceability of a Clear ERISA Welfare Plan Reimbursement Provision That Deprived a Participant of a Full Recovery; District Court Dismisses ERISA ? 502(a)(2) Claim Based on Plaintiffs' Failure to Make Pre-Suit Demand; Application of ERISA Section 510 to Internal Workplace Complaints: A Review of Circuit Court Decisions; and, Rulings, Filings, and Settlements of Interest. (Proskauer Rose LLP)
[Guidance Overview] Employers Must Comply with Changes to San Francisco Health Care Mandate Beginning January 1, 2012
"While these changes again raise federal [ERISA] preemption concerns, barring a challenge (which seems unlikely), the Ordinance's new requirements will go into effect. Employers, particularly those using a health reimbursement account plan (HRA) or a health savings account (HSA) plan, should consider compliance preparations with the assistance of legal counsel." (Jackson Lewis LLP)
[Guidance Overview] Court Finds Medical Equipment Provider's Claims not ERISA Dependent
"The court ruled that [ERISA] does not preempt certain state statutory and common law claims for negligent misrepresentation and other unfair deceptive practices." (PLANSPONSOR.COM)
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