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Health & Welfare Plans Newsletter

June 10, 2024

3 New Job Opportunities 3 New Job Opportunities

 

[Guidance Overview]

Chicago Agency Posts Updated Guidance and Notices for the City’s Paid Leave

"Effective July 1, 2024 ... The Paid Leave and Paid Sick Leave Notice must be issued to the employee in several ways ... [1] New hire notice ... [2] Annual notice ... [3] Workplace notice/poster."  MORE >>

Littler

Ninth Circuit Court of Appeals Restricts Out-of-Network Providers' Ability to Avoid ERISA Preemption of State Law Claims

"The opinion held ERISA preempted an out-of-network provider's state law claims arising from verification of benefit and preauthorization communications with a health plan administrator ... This opinion ... will limit the ability of health care providers to 'plead around' ERISA preemption or expand the scope of ERISA benefits actions by asserting non-derivative state law claims." [Bristol SL Holdings, Inc. v. Cigna Health & Life Ins. Co., No. 23-55019 (9th Cir. May 31, 2024, affirming summary judgment); Bristol SL Holdings, Inc. v. Cigna Health & Life Ins. Co., No. 23-55019 (9th Cir. May 31, 2024, affirming denial of motion for reconsideration)]  MORE >>

Troutman Pepper

SCOTUS Declines Review of Fourth Circuit ERISA Surcharge Ruling

"[B]oth the district and appellate court analyzed whether the 'catch-all' remedial provision under ERISA Section 502(a)(3) allowed for such a financial award. Both courts held that the money relief sought in the lawsuit was not a 'benefit' that could be recovered under the terms of the employer's health plan.... The Fourth Circuit's decision in Rose diverges from seven other circuits, all of which have concluded in published decisions that surcharge is an equitable remedy available under 502(a)(3)." [Rose v. PSA Airlines, Inc., No. 21-2207 (4th Cir. Sep. 11, 2023; cert. pet. denied Apr. 15, 2024)]  MORE >>

Jackson Lewis P.C.

How Did This Employer Terminate an Employee While on FMLA Without Violating the Law?

"[T]he defendant terminated the plaintiff for theft, which discredited the defendant and violated its Employee Manual. The Employee Manual noted that conduct that discredits the defendant may result in corrective action, including discharge. Since the plaintiff acknowledged receiving the Employee Manual and had no evidence that she didn't at least violate it, it was pretty clear that she would not have retained her job absent taking FMLA leave." [McBeath v. City of Indianapolis, No. 22-1216 (S.D. Ind. Apr. 29, 2024)]  MORE >>

Pierson Ferdinand LLP

ERISA Litigation Highlights, May 2024

"[1] Whether a provider has sufficiently pleaded the existence of a valid assignment clause to withstand a Motion to Dismiss in light of recent Third Circuit precedent.... [2] Whether Plaintiff's disability related to COVID-19 fell under a pre-existing condition exclusion in the long-term disability policy.... [3] Whether the insurance company's letter communicated rational reasons for its decision to deny a long-term disability claim.... [4] Did Plaintiff's complaint adequately plead the existence of a federal question such that defendant's notice of removal was untimely? ... [5] Whether the insurance company satisfied its fiduciary duty as mandated under ERISA to consider Plaintiff's claim fully and provide specific reasons for denial."  MORE >>

Saul Ewing LLP

Lewandowski Complaint Highlights Fiduciary Considerations for Selection and Monitoring of PBMs

"The [Lewandowski] complaint outlined a multitude of factors ... that a plan fiduciary may want to use when engaging in the process of selecting and monitoring a PBM. [1] Traditional v. pass-through PBMs ... [2] Rx drug rebates ... [3] PBM-owned specialty pharmacies ... [4] Mail-order pharmacies ... [5] Specialty PBM carve-out model ... [6] Drug prices ... [7] Broker and consultant conflicts of interest ... [8] RFP processes ... [9] Audit rights." [Lewandowski v. Johnson & Johnson, No. 24-0671 (D.N.J. complaint filed Feb. 5, 2024)]  MORE >>

Snell & Wilmer

With Coverage Costs Rising, Employers See Benefits in Contracting Directly for Health Care

"By bypassing insurance carriers and forging direct relationships with health care providers, pharmacies and other service vendors, companies aim to streamline costs, enhance employee access to quality care and gain greater control over benefit design and administration. However, this strategy brings its own set of challenges and considerations."  MORE >>

The Business Journals

Utilization and Price Drivers of Increasing Health Care Spending, 2010-2023

"Following the 2022 slowdown in health care spending that led to the overall health care sector reaching its smallest share of the economy since 2014 (17.3%), there has been a gradual resurgence in health care spending beginning in early 2023.... [In this article, the authors] put 2023's above-average health care utilization increases into perspective historically and break down utilization trends by the different major health care spending categories."  MORE >>

Altarum Institute

Weight-Loss Drugs Are So Popular They're Headed for Medicare Negotiations

"Medicare shelled out $5.7 billion in 2022 for three popular GLP-1 drugs, up from $57 million in 2018 ... That spending will continue to skyrocket as the benefits of these drugs pile up.... The drugs are likely choices for Medicare haggling, according to the Congressional Budget Office. But just how much will prices come down?"  MORE >>

KFF Health News

Bigger and Better Mental Health Benefits Are Needed: Communication Is Key

"Take a fresh look at ways to communicate mental health benefits to employees.... Recognize the desire for online and digital mental health support.... Leverage Awareness Days and Months to bring mental health to the forefront.... Establish mental health days for employees.... Teach managers about the importance of employee mental health."  MORE >>

BenefitsPro; free registration required

Benefits in General

[Official Guidance]

IRS Disaster Relief Notice WV-2024-03, for Taxpayers in West Virginia

"[I]ndividuals and businesses in West Virginia that were affected by severe storms, straight-line winds, tornadoes, flooding, landslides, and mudslides that began on April 2, 2024 ... now have until Nov. 1, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Boone, Brooke, Cabell, Fayette, Hancock, Kanawha, Lincoln, Marshall, Nicholas, Ohio, Preston, Putnam, Tyler, Wayne and Wetzel counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

IRS Disaster Relief Announcement KY-2024-02, for Taxpayers in Kentucky

"[I]ndividuals and businesses in Kentucky that were affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides that began on April 2, 2024 ... now have until Nov. 1, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Boyd, Carter, Fayette, Greenup, Henry, Jefferson, Jessamine, Mason, Oldham, Union, and Whitley counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Employee Benefits Jobs

View job as Client Service Manager - Retirement for GuideStone Financial Resources

Client Service Manager - Retirement

GuideStone Financial Resources

Dallas TX / Hybrid

View job as Client Service Manager - Retirement for GuideStone Financial Resources

View job as Retirement Plan Consultant for Definiti

Retirement Plan Consultant

Definiti

Remote

View job as Retirement Plan Consultant for Definiti

View job as Retirement Plan Conversion - Fund Change for SS&C Technologies

Retirement Plan Conversion - Fund Change

SS&C Technologies

Quincy MA / Kansas City MO / Dublin OH / Hybrid

View job as Retirement Plan Conversion - Fund Change for SS&C Technologies

Press Releases

Blue Ridge Associates Acquires TSC 401(k)

Blue Ridge Associates

ShareBuilder 401(k) Offers Free Set-Up on Solo 401(k) Plans from June 10 to July 1

Sharebuilder 401k

Last Issue's Most Popular Items

ERISA Group Health Plans: The New Target for Excessive Fee Cases

Groom Law Group

District Court Awards More Than $32,000 in ERISA Penalties for Failure to Provide MHPAEA-Related Plan Documents

Thomson Reuters Practical Law

Text of 2024 IRS Form 720: Quarterly Federal Excise Tax Return (PDF)

Internal Revenue Service [IRS]

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BenefitsLink® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.

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