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Health & Welfare Plans Newsletter

June 12, 2023

2 New Job Opportunities 2 New Job Opportunities

 

[Guidance Overview]

Health Apps Beware: FTC Clarifies Health Breach Notification Rule with Significant Proposed Changes

"The FTC intends to clarify and, arguably, expand the types of actors subject to the HBNR by defining 'health care provider' and 'health care services or supplies.' ... The FTC proposes to revise the definition of 'breach of security' to clarify that breaches include unauthorized disclosures of PHR identifiable health information and not just security intrusions in the traditional sense.  ... The FTC proposes to clarify that the definition of a 'PHR related entity' includes entities that offer products or services not only through the website of a PHR vendor, but also through any online services, including mobile applications, of a PHR vendor."  MORE >>

Akerman

Does a New Wave of Fiduciary Litigation Loom -- for Employer-Sponsored Health Plans?

"ERISA litigation lawyer Jerry Schlichter has taken to social media to hunt for potential employee plaintiffs for a new brand of fiduciary litigation.... Failing to comply with the requirements of the CAA leaves employers at risk of fines and class-action lawsuits. But most employers are still in the dark, believing their broker or TPA will handle compliance on their behalf or that it's simply 'no big deal.' "  MORE >>

American Retirement Association [ARA]

FTC Further Expands Inquiry Into Prescription Drug Middlemen Industry Practices

"As part of its ongoing study on pharmacy benefit managers (PBMs) and their impact on the accessibility and affordability of prescription drugs, the Federal Trade Commission has issued a compulsory order to a third group purchasing organization (GPO) that negotiates drug rebates on behalf of PBMs. The compulsory order will require the GPO entity to provide information and records on its business practices."  MORE >>

Federal Trade Commission [FTC]

Parental, Family Leave Programs Increasing

"Paid maternity and paternity leave each saw 5-percentage-point jumps from last year and are now offered by 40 percent and 32 percent of employers, respectively ... Simultaneously, paid parental leave is now offered by roughly 4 in 10 employers (39 percent), a 6-point jump from last year, according to this year's survey. Paid adoption leave also jumped by 6 percentage points, with about a third of employers (34 percent) now offering it, and paid foster child leave is now offered by 25 percent of employers, representing a 3-percentage-point increase."  MORE >>

Society for Human Resource Management [SHRM]; membership may be required to view article

Healthcare Inflation Unusually Trails General Inflation, Squeezing Financially Fragile Employees from Both Sides

"To counter inflationary trends, experts recommend plan sponsors help participants build savings rather than purchase more costly insurance as part of a 'health and wealth' strategy that optimizes both savings and financial preparedness.... [S]trategies include effectively designed acquisition cost-based pharmacy pricing, HSA-capable coverage, reference-based pricing, adequate participant protections against balance billing, and participant advocacy and litigation support."  MORE >>

aequum

[Opinion]

ERISA Civil Procedure Conflict Identified in Sixth Circuit Case

"[Sixth] Circuit Judge John Nalbandian's concurring opinion raised concern about the manner in which ERISA denial-of-benefit cases are litigated and invited the U.S. Supreme Court to review ERISA civil procedure, which he maintained was in conflict with the Federal Rules of Civil Procedure." [Tranbarger v. Lincoln Life & Annuity Co., No. 22-3369 (6th Cir. May 18, 2023)]  MORE >>

DeBofsky Law

[Opinion]

American Benefits Council Letter to IRS: 2023-2024 Priority Guidance Plan Recommendation

"[The Council requests] that Treasury and the IRS publish official guidance affirming that the 100% excise tax under Internal Revenue Code Section 4976 does not apply to an employer's reallocation or repurposing of surplus welfare benefit fund assets to provide other health and welfare benefits to employees and their beneficiaries."  MORE >>

American Benefits Council

Employee Benefits Jobs

View job as Enrolled Actuary for Defined Benefit Plans
for MB Actuarial Services

Enrolled Actuary for Defined Benefit Plans

MB Actuarial Services

Remote / San Marcos CA

View job as Enrolled Actuary for Defined Benefit Plans for MB Actuarial Services

View job as Retirement Plan Consultant
for Independent Retirement

Retirement Plan Consultant

Independent Retirement

Remote / Portland OR

View job as Retirement Plan Consultant for Independent Retirement

Selected New Discussions

Affidavit for Domestic Partnership vs. State Law Requirements

"I am working for a multi-state organization that allows for Domestic Partner coverage. I have one vendor contract that requires individuals to cohabitate for 12 consecutive months in order to qualify as a Domestic Partners. In writing a company policy pertaining to the qualifications required to be a Domestic Partner, it would make sense use the most stringent set of rules presented in the collective contracts to develop our official policy. With that said, I'm wondering if this 12 month cohabitation rule might violate any state requirements? If a state's definition of domestic partnership does not require a 12 month cohabitation period and that state/local jurisdiction requires an employer to provide benefits to domestic partners, this creates a conflict. Curious to know how others might be handling things from a policy standpoint."

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Press Releases

Cohen & Buckmann Recognized by Chambers & Partners

Cohen & Buckmann P.C.

Last Issue's Most Popular Items

Text of IRS CCM 202323006: Tax Treatment of Employer-Funded, Insured, Fixed-Indemnity Wellness Policy (PDF)

Internal Revenue Service [IRS]

ERIC Letter to IRS: Recommendations for 2023-2024 Priority Guidance Plan (PDF)

The ERISA Industry Committee [ERIC]

IRS Confirms Medical and Dependent Care Expense Reimbursement/Payment Requirements

Haynes and Boone, LLP

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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.

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