The U.S. Department of Labor has taken a series of legal actions against a multiple employer welfare associations (MEWA) plan operated by Black Wolf Consulting. The actions were taken by the DOL against this plan (the AEU Holdings LLC Employee Benefits Plan) include freezing bank accounts, replacing the plan fiduciaries, and issuing an order to [...]
The Affordable Care Act (“ACA”) remains on the books. And, in a significant new development, the IRS is poised to begin levying penalties on employers, under the ACA’s employer mandate, for 2015. These penalties may be significant and it we cannot anticipate any “relief” reaching back to 2015.
The proposed Tax Cut and Jobs Act (“TCJA”) has generated a number of big stories with big numbers, such as $1.5 trillion to lower individual tax rates and $1.5 trillion to lower corporate tax rates. But, also lurking in the 430-page draft, are many important “smaller” provisions that will affect the HR world.
President Trump has issued an executive order to encourage the use of alternative health coverages. The order seeks to expand the use of association health plans, short-term limited health coverage and health reimbursement accounts. The order could, over time, shake up health insurance markets – but, buyer beware.
ACA Update The past few weeks have been a wild ride in the U.S. health insurance marketplace, with new regulations, executive orders, and administrative pronouncements coming at a furious pace. In effect, in lieu of passing health care legislation, the Trump Administration seems to be doing everything possible to unravel the Affordable Care Act [...]
As the political battles – and stalemate - over the Affordable Care Act continues, employers may find themselves with the worst of all worlds. The portions of the ACA that create the greatest burdens on employers, such as the mandates, taxes and administrative obligations under the ACA stay, in place. At the same time, uncertainty in the individual markets creates blowback that hurts employers in a number of ways.
Two recent cases illustrate the risks of allowing plan practices to diverge from plan documents. In one case, Acosta v. Macy’s, the Department of Labor has brought a lawsuit against Macy’s department store for (among other things) changing the payment methodology for calculating out-of-network claims without appropriately modifying the Macy’s plan document. In the other case, Erwood v. Life Ins. Company of North America, an administrator’s failure to follow documented plan procedures triggered a $750,000 judgment. Both of these cases highlight how easy it is to overlook the fundamental ERISA responsibility of ensuring that plan administration syncs up with the plan documentation. And, both of these cases highlight the risks posed by such failure.
Healthcare costs continue to absorb an increasing share of benefits funding. This is forcing employers to find new ways to do more with less help employees meet other key needs. This blog explains the different approaches available to employers in meeting these needs and building employees’ human capital.
As legislators continue to repeal and replace the ACA, they look for new ways to separate portions the insurance markets into different segments. Some efforts counter actuarial and insurance principles: segmenting the risk pool increases volatility and that creation of different risk pools based on health status and effect premiums
As the debate in Washington rages on over the efforts to repeal and replace the Affordable Care Act (ACA) there is a fundamental truth that is being ignored: there are no provisions of the current ACA replacement bills - either from the House (the American Health Care Act, or AHCA) or the Senate (the Better [...]