Insights

In the current high-stress economy, American workers are growing more and more concerned with their retirement. According to a new Pew Research study, without changes, the retirement-savings gap, or the difference between the amount of money needed for a comfortable retirement and individuals’ actual savings, could create a $1.3 trillion dollar economic burden through 2040. Many Americans simply aren’t able to save enough for retirement — 61% of elderly households are projected to have an annua

An Individual Coverage Health Reimbursement Arrangement (ICHRA) is the only way an employer may reimburse an employee or directly pay the cost of an employee's individual health insurance policy or Medicare premium on a tax-advantaged basis. To do so outside of an ICHRA, an employer risks an excise penalty of up to $100 per day per employee for an impermissible employer payment plan. ICHRA Basic Requirements An employer must meet the following requirements to sponsor an ICHRA: No traditional g

On August 28, 2023, the DOL announced a grace period for users to obtain new login credentials for its EFAST2 filing system, which is used to file Form 5500 series annual returns. Beginning January 1, 2024, users will have to log in via the new Login.gov process instead of using existing EFAST2 credentials. Login.gov allows users to securely log in to many government agency websites using a single username and password. New user accounts created on or after January 1, 2023, were directed to obt

On August 15, 2023, in David P. v. United Healthcare Ins. Co., the Tenth Circuit Court of Appeals (Tenth Circuit) reversed the defendant group health plan’s claim denial because the court determined that the defendant claims administrator abused their discretion and failed to follow ERISA claims procedures. The case was remanded with instructions to the district court to determine the appropriate disposition of the plaintiffs’ claims. The plaintiff, a participant in the defendant’s group health

On August 29, 2023, in Bryant v. Walgreen Co., a federal district court dismissed most of the claims against a group health plan sponsored by Walgreens Co. (Walgreens), most notably the plaintiffs’ claim that Walgreens failed to adequately notify them of their right to continue health coverage as required by the COBRA statute. COBRA rules require plan administrators to notify qualified beneficiaries of their rights to continued coverage in a manner calculated to be understood by the average pla

Gov. Pritzker recently signed Public Act 103-0291, known as the Transportation Benefits Program Act (the Act), which will require certain employers in specific geographic areas to provide pre-tax commuter benefits to covered employees. Employers subject to this statute are those that employ 50 or more employees with an office located within one mile of the transit office within Cook County and in several townships in surrounding counties (please refer to the link to the Act for a full list of g

On August 21, 2023, the Ninth Circuit vacated its prior decision and issued a new opinion in a complicated class action lawsuit against United Behavioral Health (UBH, a subsidiary of Optum, a division of UnitedHealth Group). The case, which began in 2016, was sent back to the trial court for the second time. The Court describes UBH as one of the country’s largest managed healthcare organizations that makes determinations on claims for treatment for mental health and substance use disorders for

The SFHCSO requires covered employers (generally, employers with 20 or more employees, at least one of whom works in San Francisco) to spend a minimum amount on healthcare for their San Francisco employees. The healthcare expenditure rate varies depending on the size of the employer. As of January 1, 2024, the healthcare expenditure rate for large employers with 100 or more employees increases to $3.51 per hour payable (up from $3.40 per hour in 2023). For medium-sized employers with 20 to 99 e

On August 30, 2023, the Illinois Department of Labor published FAQs to provide additional information on the Paid Leave for All Workers Act (the Act), which we reported on in a previous edition of Compliance Corner. As a reminder, the Act is effective January 1, 2024, and will require covered Illinois employers to provide paid leave to certain employees. The FAQs cover topics such as the Act’s interaction with employers’ existing time off policies, the application of the rules on various employ