Maryland has become the tenth state, in addition to the District of Columbia, to enact a paid family and medical leave insurance program. The Maryland Department of Labor must establish regulations for implementing the Time to Care Act of 2022, no later than June 1, 2023. After the state legislature passed the bill to create this program, Governor Larry Hogan vetoed it. The state legislature voted to override Read More
Court Vacates DOL’s Withdrawal of FLSA Independent Contractor Regulations
A federal district court has vacated the U.S. Department of Labor’s (DOL) withdrawal of regulations outlining when a worker is an independent contractor under the Fair Labor Standards Act (FLSA). In Coalition for Workforce Innovation v. Walsh, No. 1:21-cv-00130-MAC (E.D. Tex. Mar. 14, 2022), the court concluded that the DOL’s initial delay and later withdrawal of the regulations did not meet federal administrative Read More
Brokerage Window Fiduciary Duties in Light of DOL Cryptocurrency Guidance
The U.S. Department of Labor (DOL) recently issued a warning about its intention to launch an investigative program into those plans that offer cryptocurrency and related products as investment options. The DOL’s investigative program would include those products offered through brokerage windows, implying that plan fiduciaries might be responsible for those investments. Therefore, plan fiduciaries need to carefully Read More
Sixth Circuit Rules Derivative ERISA Claims Not Arbitrable Without Plan Consent
On April 22, 2022, the U.S. Court of Appeals for the Sixth Circuit issued its decision in Hawkins v. Cintas Corporation, No. 21-3156, holding that ERISA claims for breach of fiduciary duty belong to the plan. As a result, plan members alleging harm to their individual retirement accounts in defined contribution plans, cannot be forced to arbitrate their claims without the plan's consent. Former employees filed Read More
Transparency in Coverage Enforcement
On April 19, 2022, the U.S. Department of Labor (DOL), U.S. Department of Health and Human Services (HHS), and the U.S. Treasury issued joint guidance concerning the 2020 Transparency in Coverage Final Rules. The primary subject of this guidance, entitled FAQs About Affordable Care Act Implementation Part 53, involves the provision of a safe harbor for health plans to disclose in-network health costs, that do not Read More
Healthcare System Sues Cigna Over Emergency Care Reimbursements
Tenet Healthcare and nineteen of its hospitals filed a complaint against Cigna Health and Life Insurance Company in Connecticut Superior Court, alleging that Cigna had reimbursed its claims at unfair and unreasonable rates. The plaintiffs also allege that Cigna wrongfully denied claims for emergency medical services, although they are legally obligated to provide Cigna plan members with emergency medical Read More
Divesting from Russia: What Private Employers Need to Know
The Russian invasion of Ukraine has led to a wave of public pension funds making divestment pledges from Russian investments. These public pension funds included some of the largest in the country, such as the state pension funds of New York and California. Private employers managing pension plans subject to ERISA should not follow divestment trends without solid financial reasons. The overall asset holdings of Read More
Federal Court Dismisses Negligence Per Se Claim Based on HIPAA Violation
A Texas federal district court has granted Blue Cross and Blue Shield of Texas, Inc.'s motion to dismiss the state law claims, including a negligence per se claim filed by Brandon Walters, a group health plan participant, concerning a HIPAA violation. The case is Walters v. Blue Cross Blue Shield of Tex., Inc., 2022 WL 902735 (N.D. Tex. 2022). Blue Cross and Blue Shield received a subpoena directing it to Read More
Chicago Workers Argue Against City’s Bid to Dismiss Wellness Plan Suit
The city of Chicago has asked an Illinois federal district court judge to dismiss a suit filed by six city employees, challenging a wellness program within the city's health insurance plan. The employees have argued against the dismissal, saying that the city's argument for dismissal is based on a dispute over voluntariness, which is an issue that is unresolvable on a motion to dismiss. The case is Williams et al. v. Read More
Biden FY 2023 Budget Asks for Increased MHPAEA Enforcement Funds and Powers
President Biden recently released his FY 2023 budget, which includes new and drastically increased funds to enforce the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). From a financial perspective, Biden calls for a $125 million budgetary allotment to the states to assist with MHPAEA enforcement. State regulators can approve plan designs of fully insured group and individual health plan options. Read More
