"[T]he Code prohibits cafeteria plans from offering qualified transportation fringe benefits, and IRS rules do not permit unused compensation reduction amounts under a qualified transportation plan to be transferred to a health FSA under a cafeteria plan.... Because some risk of loss due to changing circumstances is unavoidable, employers should clearly articulate that risk to employees before they make compensation reduction elections." [IRS Information Letter 2022-0002 (Feb. 25, 2022)]  MORE >>

"[California district court judge Jeffrey White found] that all claims stemming from plans governed by [ERISA] were preempted by federal law. He also narrowed the claims stemming from non-ERISA plans, tossing misrepresentation and concealment claims for lacking sufficiently detailed support, though plaintiffs will have a chance to replead them." [Meridian Treatment Serv. v. United Behavioral Health, No. 19-5721 (N.D. Cal. Apr. 13, 2022)]  MORE >>

"The Ninth Circuit's breezy eleven-page opinion (including cover page and concurrence) overturned a massive lower court ruling -- both in impact on behavioral health law and volume ... The Wit litigation influenced behavioral health care nationwide inspiring similar litigation, spurring additional state regulatory actions, and even legislation.... It is unclear how much the Ninth Circuit's ruling will affect Wit's influence. It may serve as the rallying cry for additional action or signal a shift in how courts and regulators should evaluate coverage guidelines." [Wit, et al. v. United Behavioral Health, Nos. 20-17363, 21-15193, 20-17364, 21-15194 (9th Cir. Mar. 22, 2022; unpub.)]  MORE >>

40 pages. "Obesity and diabetes have long been top conditions of concern for employers because of their prevalence, connection to other serious illnesses, and high direct and indirect costs. People with obesity and diabetes have suffered complications and poor outcomes from COVID-19 at rates that highlight the need for employers to address these conditions in their employee populations with renewed focus. BIPOC (Black, indigenous and people of color) populations suffer from obesity and diabetes in disproportionate numbers, so it is critically important to pursue strategies aimed at reducing inequities in care and treatment."  MORE >>

13 pages. "[O]ver two-thirds of respondents (69%) indicate that health care costs are a significant concern -- including 16% who say they are a very significant concern. Respondents from the largest organizations (those with 5,000 or more employees) were the most likely to cite a high level of concern -- 85% say health care costs are a significant concern.... Only 39% of CFOs felt very or reasonably confident that the long -- term benefit cost management strategies being implemented are saving money, and nearly a fourth didn't feel they had enough information to say."  MORE >>

"In recent years, ... the number of so-called 'orphan drugs' has increased. In the 1970s, only 10 orphan drugs were approved. Between 1983 until 2019, there have 564 orphan drugs that had been approved by the FDA. Why the change? The primary reason was the passage Orphan Drug Act (ODA), which created financial incentives to encourage companies to develop new drugs for rare disease. What were these incentives?"  MORE >>

"[T]he Ninth Circuit, while ruling in [United Behavioral Health's] favor, may have left the door open for similar class actions, depending upon the facts involved. The Ninth Circuit upheld the plaintiffs' standing to sue and the lower court's decision to certify the class, and expressly declined to resolve the issue of whether reprocessing of claims is an appropriate remedy." [Wit, et al. v. United Behavioral Health, Nos. 20-17363, 21-15193, 20-17364, 21-15194 (9th Cir. Mar. 22, 2022; unpub.)]  MORE >>

"[We] are troubled by what we perceive to be a trend at EBSA away from rulemaking based on a robust notice and comment process, including review by the Office of Information and Regulatory Affairs (OIRA). We are very aware that the line between helpful sub-regulatory guidance and indirect rulemaking is not a clear one. But we respectfully suggest that recent sub-regulatory guidance has been more in the nature of rulemaking in need of notice and comment and OIRA review, such as with respect to recent best practices guidance."  MORE >>