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Health & Welfare Plans Newsletter

June 30, 2023

2 New Job Opportunities 2 New Job Opportunities

 

[Guidance Overview]

FTC Proposed Rule Clarifies Application of Health Breach Notification Rule to Health and Wellness Apps

"[T]he FTC has indicated that the Rule applies to developers of mobile health applications and technologies, including those marketed as “wellness” products rather than “health” products The Proposed Rule aims to eliminate confusion by clarifying the Rule’s applicability to Vendors and updating relevant definitions."  MORE >>

Sheppard Mullin

[Guidance Overview]

IRS Guidance Denies Favorable Tax Treatment to Certain Wellness Program Incentive Payments

"IRS may seek to collect taxes, penalties, and interest from employers based on their failure to properly withhold income and employment taxes from wellness program incentive payments that are impermissibly made on a tax-free basis.... Employers currently sponsoring wellness incentive programs that do not comply with the guidance offered in the Memorandum are advised to work with qualified legal counsel to determine the action steps needed to correct the issue."  MORE >>

The Wagner Law Group

[Guidance Overview]

OCR Cybersecurity Newsletter: Authentication and HIPAA

"The HIPAA Security Rule requires HIPAA covered entities and business associates ('regulated entities') to implement authentication procedures 'to verify that a person or entity seeking access to electronic protected health information is the one claimed. Even though regulated entities must ensure the confidentiality, integrity, and availability of all of their ePHI, non-compliance with the Security Rule's authentication standard continues to leave regulated entities vulnerable to successful cyber-attacks and breaches of ePHI."  MORE >>

U.S. Department of Health and Human Services [HHS]

[Guidance Overview]

Connecticut Expands Paid Sick and Safe Leave Uses

"SB 2 expands covered uses in two ways: First, service workers can use 'sick' leave for a 'mental health wellness day,' ... Second, service workers can take such leave if they are a parent or guardian of a child who is a victim ... for medical care or psychological or other counseling for physical or psychological injury or disability, obtaining services from a victim services organization, relocating due to family violence or sexual assault, or participating in any civil or criminal proceedings related to or resulting from family violence or sexual assault."  MORE >>

Littler

[Guidance Overview]

HHS Announces Actions to Lower Health Care Costs and Allow Medicare to Negotiate Lower Drug Prices

"HHS released revised drug price negotiation guidance ... Starting this year, Medicare will begin to negotiate directly with drug manufacturers to bring down the price of covered high-cost prescription drugs. CMS will announce the first 10 drugs selected for negotiation by September 1, 2023. The first round of negotiations will occur during 2023 and 2024. The prices that are negotiated will be effective starting in 2026."  MORE >>

U.S. Department of Health and Human Services [HHS]

Fourth Circuit Affirms Insurer's Termination of Writer's Long-Term Disability Benefits

"Plaintiff argued that Zurich abused its discretion by failing to evaluate his particular job responsibilities in determining his disability status. The court disagreed.... Though his doctor supported disability, the court found that the treatment records did not support that conclusion." [Geiger v. Zurich Am. Ins. Co., No. 22-1519 (4th Cir. June 28, 2023)]  MORE >>

Roberts Disability Law

Medical Cost Trend: Behind the Numbers

"HRI is projecting a 7.0% year on year medical cost trend in 2024 for both Individual and Group markets. This trend is higher than the projected medical cost trend in 2022 and 2023, which was 5.5% and 6.0%, respectively. The higher medical cost trend in 2024 reflects health plans' modeling for inflationary unit cost impacts with their contracted healthcare providers, as well as persistent double-digit pharmacy trends driven by specialty drugs and the increasing use of certain medications used to treat Type 2 Diabetes or weight loss."  MORE >>

PwC

Cybersecurity Breach Involving Unsecured Server Leads to $75,000 HIPAA Settlement

"HHS began investigating the BA in August 2017 after receiving a breach notification indicating that a server containing the electronic protected health information (ePHI) of 267 individuals was unsecured and accessible online. An unauthorized individual then 'exfiltrated' ePHI from the BA's unsecure server."  MORE >>

Thomson Reuters Practical Law

[Opinion]

Are Your Employees Asking About Weight-Loss Drug Coverage? They Will Be

"A simple, 'This just isn't covered,' won't quell the grumbling.... [W]ellbeing programs must evolve to have a better focus on behavior modification, nutrition education, and support systems in place to help individuals achieve sustainable weight loss. While GLP-1 drugs do work, employers must consider refining the alternatives to ensure employees have equitable access to other effective weight management tools."  MORE >>

EPIC

[Opinion]

Potential Impacts of Proposed Government Regulation on Commercial Health Care

"Faced with government interference, manufacturers are working to ensure they can continue to increase drug costs by weakening the role of PBMs.... [E]mployer trade groups in Washington, D.C., are backing PhRMA's agenda. These organizations are advocating for insurance 'reforms' disguised as legislation to reduce prescription drug costs, instead of prioritizing closing a legal loophole that permits each state to have its own laws regulating employer health care."  MORE >>

CVS Health

Employee Benefits Jobs

View job as Dedicated Client Services Consultant - Retirement Plans
for Ameritas

Dedicated Client Services Consultant - Retirement Plans

Ameritas

Remote

View job as Dedicated Client Services Consultant - Retirement Plans for Ameritas

View job as Senior Retirement Analyst
for Dunbar, Bender & Zapf, Inc.

Senior Retirement Analyst

Dunbar, Bender & Zapf, Inc.

Remote / Pittsburgh PA

View job as Senior Retirement Analyst for Dunbar, Bender & Zapf, Inc.

Webcasts and Conferences
(Health & Welfare Plans)

Tackling Your Next Level FMLA Challenges

August 31, 2023 WEBINAR

Disability Management Employer Coalition [DMEC]

Last Issue's Most Popular Items

Open Issue: Employer-Sponsored Health Plans and Coverage of Gender-Affirming Care

Jackson Lewis P.C.

Transparency Rules Heighten Risk of Lawsuits Against Health and Welfare Plan Fiduciaries

Kutak Rock LLP

Sixth Circuit Concludes Lack of Proper Delegation Means Benefits Department Did Not Have Discretionary Authority to Decide Claims

Proskauer

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

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