Employee Benefits News

Shane Reed Shane Reed

Revisiting the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021” (EFAA)

The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) went into effect on March 3, 2022. As an amendment to the Federal Arbitration Act (FAA), the legislation permits individuals alleging sexual assault and harassment to bypass forced arbitration under the FAA and pursue their claims in court. (9 USC § 402(a).)

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Michaela Posner Michaela Posner

Biden Administration Takes Aim at Unlawful Insurance Barriers to Mental Health Treatment

The Mental Health Parity and Addiction Equity Act (MHPAEA) is a federal law that governs benefits provided by group health plans and health insurance issuers. Since its enactment in 2008, MHPAEA prohibits less favorable benefit limitations for mental health or substance use disorder benefits when compared to limitations on medical and surgical benefits. This law reflects the growing recognition that mental health is a key component of an individual’s overall health and well-being, as well as the fact that addiction is not a personality flaw but has medical components as well.

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Sara Zollner Sara Zollner

California Expands Protections for Medical Providers Performing Abortions and Gender-Affirming Health Care (SB 345, SB 487, SB 571, AB 1707)

On September 27, 2023, Governor Newsom signed four bills into law aimed at protecting medical providers who perform abortions and gender-affirming services. The bills are anticipated to improve accessibility and affordability of services for all who need them. While these bills are focused on increasing protections for medical providers performing abortions and gender-affirming services, they confirm current access to healthcare for Californians and could have future impacts on employees’ health insurance.

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Ailyn Gonzalez Ailyn Gonzalez

SECURE 2.0 Act Establishes New Rules for Recouping Retirement Plan Overpayments

The SECURE 2.0 Act of 2022, referred to herein as the Act, established new overpayment recovery rules. When a plan decides to recoup overpayments, the Act establishes limits on recovery amounts, recoupment methods, and the timing of recovery. Prior to the Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) required pension plan fiduciaries to recoup any plan overpayments mistakenly made to participants. The law provided only narrow circumstances in which fiduciaries were not required to do so. Pension funds would often have no choice but to require retirees to pay back these sometimes significant overpayments—received through no fault of the retiree—creating serious strain particularly because retirees often depend heavily on their pension for necessities.

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Maximillian Casillas Maximillian Casillas

Federal Government Announces Billions in Relief to Pension Funds

On June 29, 2023, the Biden administration announced that the National Integrated Group pension plan will receive more than $887 million from the federal Pension Benefit Guaranty Corporation (known as the PBGC), guaranteeing benefits for thousands who work in or have retired from manufacturing jobs, including United Auto Workers retirees. The plan was expected to run out of money in 2034, forcing retirees to lose 15% of their benefits.

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Winnie Vien Winnie Vien

End of COVID-19 National Emergency and Public Health Emergency Lead to Significant Changes for Employee Benefit Plans

On April 10, 2023, President Biden signed H.J.Res.7, officially declaring the end of the COVID-19 National Emergency. Separately, May 11, 2023 marked the end of the Public Health Emergency declared by the Department of Health and Human Services (“HHS”). The end of these two emergency periods means big changes for employee benefit plans, which should ensure that plan documents and policies are up-to-date.

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Craig Schechter Craig Schechter

Courts grapple with limits on health insurance coverage for mental health and substance abuse disorders

The Ninth Circuit Court of Appeals recently published a decision in Wit v. United Behavioral Health, 58 F.4th 1090 (2023), a case that could potentially lead to a significant change in ERISA law. In short, the courts are analyzing whether a healthcare administrator can enact more restrictive internal guidelines as to what is medically covered than “generally accepted standards of care.”

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Hugo Garcia Hugo Garcia

Sweeping changes to retirement benefits create automatic enrollment in 401(k) plans and push back age for required minimum distributions

On January 11, 2023, the United States Department of Veterans Affairs (“VA”) proposed a rule that would waive copayments for eligible Native American and Alaska Native veterans. There will be a 30-day period for the public to provide comments on the VA’s proposed rule. After reviewing public comments, the VA will develop and publish a final rule.

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Alex Milne Alex Milne

Department of Veterans Affairs Proposes Rule to Waive Copays for Eligible Native American Veterans

On January 11, 2023, the United States Department of Veterans Affairs (“VA”) proposed a rule that would waive copayments for eligible Native American and Alaska Native veterans. There will be a 30-day period for the public to provide comments on the VA’s proposed rule. After reviewing public comments, the VA will develop and publish a final rule.

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William Hanley William Hanley

Cryptocurrency and Benefit Plans: The Feds Weigh In

The “explosive growth” in recent years of so-called “digital assets,” including cryptocurrencies such as Bitcoin, is undeniable: according to the White House, these currencies have a current market value of over $3 trillion, up from $14 billion five years ago, and “around 16% of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies.”

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Justin Mabee Justin Mabee

Aid for Troubled Defined Benefit Pension Plans

More than one million workers and retirees were faced with the possibility of losing much of their pension benefits due to underfunded defined benefit plans, many still struggling to recover as a result of the 2008 recession and changes in their industries.

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Justin Mabee Justin Mabee

The No Surprise Act to Address Surprise Medical Billings and New Plan Obligations

On December 21, 2020, bipartisan congressional leaders agreed on a $900 billion COVID-19 relief package, which included the “No Surprise Act” (“the Act”). The Act, which labor advocates supported, seeks to address the issue of “surprise” medical billings, i.e., large, unanticipated out-of-pocket expenses that insured patients incur through no fault of their own.

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Justin Mabee Justin Mabee

California Supreme Court Rules on Modification of Public Employees’ Pension Rights

In Alameda County Deputy Sheriffs’ Association, et al. v. Alameda County Employees’ Retirement Association, et al., the California Supreme Court rejected a constitutional challenge to certain provisions of the Public Employees’ Pension Reform Act (PEPRA), and explained the legal test that applies when vested public pension rights are modified.

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