Practical HR Tips, News & Advice. Updated Daily.
In a May 18 ruling, the Texas Supreme Court compelled a stop-loss insurer to pay a direct premium tax on stop-loss policies sold to self-funded health plans. Stop-loss insurance written in Texas for self-funded plans is not “reinsurance” and thus must pay state levies and follow state insurance rules, the court held. American National, a […]
Employers that operate private airplanes for the use of their executives may want to stay tuned to some controversy over a recent IRS legal memorandum outlining the tax collector’s stance on aircraft management fees. The IRS shared its views on federal excise tax in Chief Counsel Advice Memorandum 201210026, which concludes that the tax applies […]
When an employee fails to return from FMLA leave, for at least 30 calendar days, the employer may demand payment of its share of the health premiums paid during the leave. However, that may not be easy, and it may not be sensible. Most state wage and hour laws do not permit an employer to […]
Legislation that would repeal health reform rules limiting the reimbursement of over-the-counter medications is inching closer to passage. On June 5, the Restoring Access to Medication Act (H.R. 5842) was placed on the House calendar, so the full House will soon vote on the measure. The Ways and Means Committee on May 31 ordered the […]
Employers can expect continued uncertainty regarding whether they will need to adjust their plans, documents and policies to accommodate same-sex spouses. The 9th U.S. Circuit Court of Appeals on June 5 refused a petition that the full bench of the court rehear Perry v. Brown, Nos. 10-16696, 11-16577. That lets stand the ruling by a […]
For guidance, we consulted BLR’s Family and Medical Leave Act Compliance Guide, which states: Employers who provide group healthcare coverage typically require employees to pay a portion of the premium for the health plan, typically collected by the employer through an authorized payroll deduction. An employee on FMLA leave is required to make that same […]
While ERISA self-insured plans themselves are not subject to state regulation, states are clamping down on stop-loss coverage as a way to discourage self-funding, say attorney Ron Peck and legal administrator Chris Aguiar at the Phia Group, Braintree, Mass. The Texas Supreme Court ruling in TDI v American National Ins. Co. and the passage by […]
Employees can qualify for multiple exemptions under the Fair Labor Standards Act, so employers should remember that if they document an employee’s specific exemption, they should note any and all applicable exemptions, so that they are able to argue multiple exemptions in any FLSA litigation. This principle is illustrated in Schaefer La-Rose v. Eli Lilly […]
Because an employer health plan gave a full and fair review resulting in a reasonable benefits decision, a federal court upheld the plan’s lifetime limit on obesity services and its prohibition on payments to treat complications from earlier gastric bypass surgeries. The plan also weathered an allegation that it was not properly segregating plan funds. […]
Employers and plan administrators that find the over-the-counter drug rules put in place by the health care reform law to be onerous may have relief, if the Ways and Means Committee has its way. The committee on May 31 in a 24-9 vote ordered H.R. 5842, the Restoring Access to Medication Act, reported to the […]