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Administration Proposes Changes to Regs Governing Insurance Subject to the ACA

"[T]he Proposed Rule contains a variety of key changes to the regulations governing health insurance subject to the ACA that will impact those seeking to obtain health coverage through state and federal insurance marketplaces (the “Marketplace”)."

Guidance Released for Mandatory Automatic Enrollment Requirements for New Retirement Plans

"These requirements: [1] Require automatic enrollment of employees with elective deferral contributions of at least 3% and no more than 10% in the first year of participation ... [2] Permit participants to withdraw their automatic elective deferrals within 90 days of their first elective deferral contributions being made. [3] If no investment election is made, permit the automatic elective deferrals to be invested in qualified default investment alternatives (QDIAs)."

HHS Publishes NPRM to Amend HIPAA Security Rule Requirements; Comments Due March 7

"[T]he proposed modifications signal HHS's commitment to aligning the Security Rule requirements with current cybersecurity standards and addressing areas of non-compliance with more prescriptive measures to enhance ePHI security in the face of evolving cyber threats and technological advancements.... If the proposed Security Rule amendments proceed unchanged, regulated entities and health plan sponsors could incur significant combined costs, which HHS estimates at approximately $9.3 billion in the first year of implementation."

DOL Adopts Self-Correction for Common Retirement Plan Fiduciary Breaches

"For the first time since the DOL adopted its Voluntary Fiduciary Correction Program in 2002, retirement plan sponsors will be able to utilize self-correction as an efficient means to correct their most frequent compliance failures late transmittals of [1] participant retirement plan contributions; and [2] retirement plan loan repayments."

Sixth Circuit Extends Family Member Relationships Covered by FMLA

"Instead of bright lines like age at the time of incapacity or the formation of the caretaker relationship, the critical question for the Court was whether the sibling requesting accommodation had taken on more responsibility for providing care than one would ordinarily expect to provide to a sibling ... [T]he Court remanded the case to the trial court to determine whether Ms. Chapman had intended to form a quasi-parental relationship with her dying sister akin to those relationships held in the past to constitute in loco parentis relationships." [Chapman v. Brentlinger Enterprises, No. 23-3582/3613 (6th Cir. Dec. 13, 2024)]

MHPAEA Final Rules: Plans and Issuers Must Prepare for January 1, 2025 Effective Date

"Although the Final Rules appear less burdensome than the proposed rules, they do impose significant changes to the obligations of group health plans and health insurance issuers with a short time to achieve compliance."

Pennsylvania Federal Court Refuses to Enjoin FTC's Noncompete Rule, Creating Split in Federal Courts

"In a sharp departure from her Texas judicial counterpart, Judge Hodge concluded that a preliminary injunction would be improper because the plaintiffs in the Pennsylvania case had not demonstrated that they would suffer any irreparable harm in the absence of such relief.... Judge Hodge also opined that the plaintiffs in the Pennsylvania proceeding are unlikely to succeed in their substantive challenge to the Final Rule." [ATS Tree Services, LLC v. Federal Trade Commission, No. 24-1743 (E.D. Penn. Jul. 23, 2024)]

Departments Issue Notice of Proposed Rulemaking Related to MHPAEA

"The proposed rules incorporate new and revised definitions of key terms ... The final requirement includes collection of the number and percentage of relevant claims denials, as well as other data relevant to the NQTL as required by State law or private accreditation standards. The rules propose a modified, non-exhaustive list of NQTLs, drawing from NQTLs that have been the subject of comparative analyses reviewed by the Departments."

CMS Plans to Implement Stricter Enforcement Efforts to Boost Hospital Price Transparency Compliance

"Approximately 30% of hospitals remain noncompliant with the PTR.... CMS has shared several changes that are being explored for future implementation: [1] Standardized reporting.... [2] Conspicuous link placement.... [3] Streamlined enforcement efforts."

OCR Joins Chorus of Regulators Warning About Health Data Tracking Technology

"Organizations must conduct a fact-based analysis to determine whether health data collection and tracking technology deployed on their websites and mobile apps complies with the federal Health Insurance Portability and Accountability Act (HIPAA) and other applicable laws and guidance."