Insights

On April 12, 2022, the US Court of Appeals for the Sixth Circuit ruled in Chelf v. Prudential, et al. that an employer may be acting as a fiduciary when mishandling premiums for group disability and life insurance. As a full-time Wal-Mart employee, Elmer Chelf was insured under group short-term disability (STD), long-term disability (LTD) and basic life insurance plans. He further elected optional term life insurance under a group policy insured by Prudential. When Mr. Chelf died of natural ca

On April 20, 2022, Superintendent Toal released Bulletin 2022-006 to all health insurance issuers selling healthcare plans in the state's small group market. The bulletin provides program parameters, requirements for issuers, and the Superintendent's responsibilities for forthcoming emergency rules that establish the Small Business Health Insurance Premium Relief Initiative. Effective January 1, 2022, the state legislature created a healthcare affordability fund from which the state will reimbu

Many of the benefits-related laws apply to fully insured and self-insured health and welfare plans in the same manner. However, there are differences that employer plan sponsors should be aware of when they contemplate changing between the two. This webinar discusses some of the major compliance obligations to consider when a plan goes from fully insured to self-insured (or vice versa). Agenda Self-insured Plan Overview Coverage Mandates ERISA and Plan Funding Other ERISA Considerations COBRA

On March 29, 2022, the US House of Representatives (the 'House') passed the Securing a Strong Retirement Act of 2022, which is also known as the SECURE Act 2.0. This comprehensive bill includes many provisions which, if enacted into law, would impact employer-sponsored retirement plans. In December 2019, Congress passed the SECURE Act, which significantly changed existing retirement plan regulations. The SECURE Act sought to increase participation in employer-sponsored retirement plans and the

The California Department of Industrial Relations published FAQs related to the 2022 COVID-19 Supplemental Paid Sick Leave (SPSL). The SPSL requirement applies to employers with 26 or more employees. The new guidance clarifies that employers must include all employees nationwide to determine size. Employees are eligible for the leave if they work in California and are unable to work (including telework) due to their own COVID-19 related symptoms or are caring for a family member with COVID-19 r

Employers with workers employed in the state of Illinois should be aware of the Illinois Consumer Coverage Disclosure Act (or CCDA). The law became effective on August 27, 2021. The CCDA requires all private employers and non-federal governmental employers to provide Illinois employees with a disclosure that compares their coverage to essential health benefits (EHBs) required for coverage received through the Illinois marketplace. The employer must provide a disclosure for each group health pla

On March 31, 2022, the Department of Financial Services (DFS) issued a circular letter to advise health insurers of the coverage requirements for preventive care and screenings for colorectal cancer. The memo follows recent federal guidance based on a recommendation by the United States Preventive Services Task Force (USPSTF). Excluding grandfathered health plans, insurers that issue or deliver policies in New York providing hospital, surgical, or medical care coverage must provide coverage fo

On April 4, 2022, CMS released the 2023 parameters for the Medicare Part D prescription drug benefit. This information is used by employers to determine whether the prescription drug coverage offered by their group coverage is creditable or non-creditable. To be creditable, the actuarial value of the coverage must equal or exceed the value-defined standard Medicare Part D coverage provides. For 2023, the defined standard Medicare Part D prescription drug benefit is: Deductible: $505 (increase

On March 7, 2022, the Insurance and Safety Fire Commissioner issued Bulletin 22-EX-1 to insurers regarding ERISA preemption. The bulletin was apparently intended to address questions from state residents regarding why state laws were not enforceable against self-funded ERISA plans. The bulletin explains that ERISA preempts all state and local laws that 'relate to' employee benefit plans covered by ERISA. This broad preemption was designed to enable large employers to offer and administer unifor