Health & Welfare Plans Newsletter

May 31, 2018

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[Guidance Overview]

Fog Lifts on San Francisco's New Paid Sick Leave Rules

"[U]pdated rules will take effect on June 7, 2018.... [If] an employee is jointly employed, and at least one employer is covered by the PSLO, each employer must comply with the PSLO. The rules follow California law to determine if an employee is jointly employed.... [J]oint employment can occur when an employer uses a temporary staffing agency, leasing agency, or professional employer organization.... [A] 'controlled group of corporations' ... is considered to be a single employer under the PSLO." Seyfarth Shaw

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Case Study: Employer Struggled with PTO Policy, Then New York's Family Leave Law Upped the Stakes

"Northwell Health already struggled with how to avoid disrupting patient care when its employees took paid time off.... But when New York's mandated paid family leave -- which gives full- and part-time employees eight weeks of paid time off to care for a sick relative or bond with a new child after birth or placement for adoption or foster care -- went into effect Jan. 1, it furthered the concern even more for the largest healthcare provider in New York state." Employee Benefit News

IRS Increases ACA Employer Mandate Affordability Threshold for 2019

"A minimum value healthcare coverage offer to an employee won't be considered 'affordable' in 2019 unless the employee's share of the premium for self-only coverage is no more than 9.86 percent of the employee's household income, up from 9.56 percent for 2018.... Employers applying an affordability safe harbor in 2018 and intending to do so again for 2019 may increase the employee's cost share for self-only coverage by at least three-tenths of a percent (of the total premium cost for self-only coverage) without losing safe harbor protection." Lockton

Is Your Workplace Prepared for the Opioid Epidemic?

"About 4 in 10 opioid addicts are covered by large employer health plans. The cost of treatment for opioid addiction was $2.6 billion in 2016. The average employer spends $19,000 per year, per employee for treatment related to opioid addiction.... What employers can do ... How health insurance providers can work with employers." America's Health Insurance Plans [AHIP]

Fiduciary Responsibility in Healthcare Plans, Part Four

"The financial industry has figured out how to stop credit card fraud. The industry applies preventive technologies that connect data points. As a result credit card fraud is 0.07% of total volume. By comparison, health care fraud is 14,285% higher! Could there be a connection between who's actually on the hook for credit card fraud, (ultimately the financial institutions)? And for health care fraud (ultimately plan sponsors and their employees)?" Fiduciary Plan Governance, LLC

Massachusetts Business Groups Seek to Pare Back Emergency Room Visits

"The Massachusetts Employer-Led Coalition to Reduce Health Care Costs plans to work with doctors, hospitals, and health insurers to 'shift as many avoidable [emergency department (ED)] visits as possible to high-value, lower-cost settings' ... 42 percent of all [ED] visits in Massachusetts in 2015 were avoidable ... [T]he most common conditions for which people had avoidable emergency visits in 2015 were sinus infections, stomach pain, rashes or skin conditions, acid reflux, bronchitis, dental pain, back pain, allergies, urinary tract infections, and eye or ear infections." CommonWealth

House Subcommittee to Hold Hearing on Lowering Costs and Expanding Access to Health Care Through Consumer-Directed Health Plans

"The hearing will examine trends in enrollment and demographics for health spending account holders and the benefits of consumer-directed health care. It will also examine policies designed to give more consumers access to tax-favored savings accounts, including Health Savings Accounts. The hearing will take place on Wednesday, June 6, 2018 ... beginning at 11:00 AM." Health Subcommittee, Committee on Ways and Means, U.S. House of Representatives

Is Investing in an HSA a Good Idea?

"The long-running bull market is making it more tempting than ever for clients to try and realize long-term, tax-free earnings growth within HSA accounts. That strategy can often make sense, say financial professionals, but financial advisors should make sure clients fully understand their range of options." Financial Planning

[Opinion]

Letter from Employer Groups to IRS and HHS Calling for Suspension of ACA Tax Assessments and Repeal of the Employer Mandate (PDF)

"[T]he IRS has identified over 30,000 employers who are potentially liable for assessments totaling $4.3 billion -- and at least 10,000 assessment letters had already been sent. The fact that most of the assessments issued have been reconciled ... makes clear that the IRS is operating on incomplete and incorrect information and assumptions -- a disturbing result that could have been avoided if the law had been followed." The ERISA Industry Committee [ERIC]

Benefits in General

What a High Court Swing Vote Exit Would Mean for Employee Benefit Cases

"Supreme Court watchers are patiently waiting for decisions and speculating wildly about the possible departure of the high court's swing vote: Justice Anthony Kennedy. The departure of the current longest-serving justice would mean the loss of the most institutional knowledge on the court, including the most experience in employee benefits cases. Kennedy has written the second-highest amount of majority and separate opinions in employee benefits cases of all the sitting justices. His record is bested only by Justice Clarence Thomas, who has been the court's most prolific author in [ERISA] cases." Bloomberg BNA

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BenefitsLink Health & Welfare Plans Newsletter, ISSN no. 1536-9595. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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