Practical HR Tips, News & Advice. Updated Daily.
On April 22, the Colorado House of Representatives passed legislation regulating stop-loss through minimum attachment points, and requiring stop-loss insurers to give the commissioner information about their self-insuring clients with 100 and fewer full-time equivalents. The bill also would give the insurance commissioner authority to unilaterally raise minimum stop-loss attachment points based on medical price […]
Group health plan terms clearly explained that the plan administrator had to be notified of a disability determination within 60 days in order to trigger an 11-month COBRA extension; therefore, the plan administrator was justified in denying the extension when notice was received five months after the determination was issued, a federal district court in […]
Employers might pay less than $63 per covered life per year under health reform’s transitional reinsurance fee rules, but that would require a surplus in the fund, a U.S. Department of Labor official told an employer plan industry group on April 18 in Washington, D.C. Even though possible, such a reduction would be contingent on: […]
In rejecting a qualified beneficiary’s attempt to increase a nearly $3,000 COBRA notice penalty, the 3rd U.S. Circuit Court of Appeals noted that the employer/plan administrator’s efforts to remedy the violation did not warrant any higher award. The court also rejected the individual’s request for the reimbursement of medical expenses and attorney’s fees. But in […]
It is clear based upon the U.S. Supreme Court decision in U.S. Airways v. McCutchen that ERISA health plans should consider modifying their plan provisions to expressly negate the application of the common fund rule in the future. This decision represents a victory and a reminder. The McCutchen ruling (No. 11-1285 (U.S. Ct., April 16, […]
Clear plan document terms in ERISA group health plans are the best defense against legal claims asserting broad equitable remedies, the U.S. Supreme Court reinforced in an April 16 decision. In its holding, the Court affirmed that equitable theories, such as make-whole, common fund, unjust enrichment and double-recovery doctrines should not be allowed to override […]
Any employee benefit program will better meet its objectives if an employer communicates about it effectively. And perhaps no other employee benefit plan requires as much careful attention to employee communication as a 401(k) plan (see ¶102 in Thompson’s The 401(k) Handbook). Pre-tax 401(k) plans are unlike employee savings plans that use after-tax contributions, and […]
Employers making the decision to play or pay under the Affordable Care Act (ACA) have a lot of questions right now because the mandate to provide insurance to full-time employees goes into effect January 2014. In a recent CER webinar, Ashley Gillihan explained some of the factors that employers should consider when making this decision. […]
Beyond health insurance and retirement benefits (covered in previous surveys), the number one perk provided by the employers responding to our survey was paid holidays, with 91% percent of them offering it. Other highlights: Flextime is offered by 53% of respondents. About 33% relax their dress code in the summer, at least for some […]
Some employee benefits such as child care and transportation benefits are soon to be offered to the same-sex domestic partners of military members, U.S. Department of Defense recently announced. Outgoing Secretary of Defense Leon Panetta indicated in Feb. 11 memo that the move was a step toward conferring benefits to same-sex partners that currently are only […]