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Health & Welfare Plans Newsletter

August 8, 2024

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[Guidance Overview]

Can COBRA Coverage Be Terminated Early If a Qualified Beneficiary Submits a Fraudulent Claim?

"You may terminate a qualified beneficiary's COBRA coverage for submission of fraudulent claims if three requirements are met: [1] your health plan must permit you to terminate active employees' coverage for the same reason; [2] the plan must allow you to terminate COBRA coverage for cause; and [3] the plan's COBRA notices and communications must disclose the plan's right to terminate coverage for cause."  MORE >>

Thomson Reuters / EBIA

[Guidance Overview]

Michigan Supreme Court Reinstates Voter-Initiated Sick Leave Law

"Effective February 21, 2025, the Earned Sick Time Act (ESTA) applies to all employees in Michigan and covers employees not eligible for sick leave under the Paid Medical Leave Act (PMLA). The ESTA contains anti-retaliation and anti-interference provisions, and allows employees to bring a civil action against their employer for violation of the ESTA. Employers not previously covered by the PMLA should implement a sick leave policy in accordance with the ESTA, and employers who currently follow the PMLA should review their policies and revise them to comply with the ESTA."  MORE >>

Faegre Drinker

Fifth Circuit Affirms Decision to Vacate Portions of Surprise Billing IDR Regulations (PDF)

"The IDR regulations remain in flux more than ever in the wake of the U.S. Supreme Court's Loper Bright decision nullifying the long-standing Chevron doctrine and emphasizing that courts must apply their own judgment in reviewing agency actions rather than deferring to agency interpretations of statutory requirements.' [Texas Med. Ass"n (TMA) v. HHS, No. 23-40217 (5th Cir. Aug. 2, 2024)]  MORE >>

Thomson Reuters / EBIA

In States with Health Care Spending Targets, Spending Growth Moderated in 2022 But Still Exceeded Targets

"As of mid-2024, eight states have committed to a process to slow spending growth by establishing statewide targets for health care spending growth.... [In 2022,] Rhode Island was the only state to meet its spending growth target of 3.2 percent; it had the lowest rate of spending growth at 1.6 percent. Oregon's 2022 spending grew 3.6 percent, only slightly exceeding its 3.4 percent target. Connecticut also slightly exceeded its 3.2 percent target with spending growth at 3.4 percent. Meanwhile, Delaware and Massachusetts significantly exceeded their targets with 2022 spending growth of 6.3 percent and 5.8 percent, respectively."  MORE >>

Health Affairs Forefront

ICHRAs Might Be Adding to Individual Health Plan Sales

"ICHRA enrollees may now account for a noticeable fraction of the 24.3 million Americans who had individual or family major medical coverage March 31, 2024.... [One] sign that some of the new individual enrollment could be ICHRA enrollment is that individual enrollment increased by 3.2 million during a year when the labor market was strong but reported enrollment in employer-sponsored group health plans fell by 1.5 million"  MORE >>

BenefitsPro; free registration required

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Sponsored by Lorman Educational Services

CRS Legal Sidebar: Private Equity Investments in Health Care: Selected Enforcement Issues

"While the overall significance of these investments to the health care sector is disputed, they have attracted regulatory, legislative, and academic interest, particularly in the midst of ongoing conversations about health care quality and costs.... This Legal Sidebar explores recent regulatory and enforcement activities involving private equity investments in health care under federal antitrust law and the False Claims Act, including efforts to hold private equity firms and funds directly liable alongside portfolio companies." [LSB11215 Aug. 8, 2024]  MORE >>

Congressional Research Service [CRS]

Benefits in General

Senate and House Differ on DOL Budget, Retirement Security Rule, ESOP Issues

"The Senate version would appropriate $13.8 billion in total for the DOL, just shy of the $13.9 billion that Acting Secretary of Labor Julie Su requested in April. The Employee Benefits Security Administration (EBSA) would receive $206.1 million of that total, an increase from its 2024 budget of $191.1 million. Su had requested $205.7 million. The House version would provide $10.5 billion to the DOL and $181.1 million to EBSA."  MORE >>

American Retirement Association [ARA]

Lawsuits Lead to Inconsistent Judicial Rulings Regarding the FTC's Noncompete Ban

"Employers should remain mindful that the notice requirement does not apply to the Rule's enumerated exceptions. That is, employers do not need to deliver notice to workers [1] who are considered highly compensated senior executives (as defined in the Rule) with existing noncompetes or [2] entered into a noncompete pursuant to the bona-fide sale of a business. Employers likewise do not need to deliver notice to a worker in a situation where causes of action related to an existing noncompete accrued before the final rule."  MORE >>

Winstead

Employee Benefits Jobs

View job as Compliance Specialist - Retirement for GuideStone Financial Resources

Compliance Specialist - Retirement

GuideStone Financial Resources

TX / Hybrid

View job as Compliance Specialist - Retirement for GuideStone Financial Resources

Press Releases

Thompson Coburn Welcomes Employee Benefits Litigator Michael Graham as Partner in Chicago

Thompson Coburn LLP

Hub International Enhances Retirement Services with Acquisition of Clark 401(k) Consulting, LLC in California

HUB International

Employees First Announces Benefits-Captive-as-a-Serviceā„¢ Model for Transparency in Voluntary Benefits

Employees First

Leading Producer Matt Solomon Representing TRA Once Again

TRA [The Retirement Advantage]

Webcasts and Conferences
(Health & Welfare Plans)

Employee Benefits Plans: What You Need to Know for 2025

September 4, 2024 WEBINAR

Troutman Pepper

ERISA's Beginning: A Discussion with Practitioners Who Were There

September 5, 2024 WEBINAR

Eversheds Sutherland

Navigating Data Privacy and Cybersecurity Risks for ERISA-Regulated Plans: Key Issues for Plan Sponsors and Administrators

September 12, 2024 WEBINAR

Strafford

Last Issue's Most Popular Items

Lawsuit Against Wells Fargo Highlights Increasing Focus on Health and Welfare Plan Fiduciaries

Kutak Rock LLP

Seventh Circuit Affirms Health Insurer Not Required to Cover Therapies for Autism

Roberts Disability Law

Steps for Employers, VPs of HR and CFOs to Avoid Fiduciary Litigation Over Health Plan Costs

Craig Gottwals, via Substack; free registration may be required

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

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