Health & Welfare Plans Newsletter

June 29, 2018

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[Guidance Overview]

Massachusetts Enacts New Paid Leave Program

"[C]overed employees may apply for paid leave following the occurrence of a qualifying event. Payment is subject to a one-week waiting period ... Eligible employees may utilize other paid leave, such as sick leave or vacation, during this period. Intermittent leave may be available, except for bonding with a child unless agreed to by both employee and employer." Littler

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IRS Releases Reporting Form for Plan Sponsors of Limited Wraparound Coverage

"The reporting requirement is intended to help CMS determine whether the exception for limited wraparound coverage is allowing employers to provide employees with benefits comparable to the employer's group health plan without eroding employer-sponsored coverage. In addition to required reporting, limited wraparound coverage must satisfy strict criteria to be considered an excepted benefit." Thomson Reuters / EBIA

Amazon's Attack on the Pharmacy Industry Has Begun

"The PillPack acquisition gives Amazon a foothold in the regulated pharmacy business. PillPack has pharmacy licenses in all 50 states and brings in-house expertise that could help Amazon move more quickly into a space filled with regulatory obstacles ... PillPack has also developed expertise in battling with payers and pharmacy benefit managers to have its services covered, and Amazon will bring new clout to those negotiations." The Washington Post; subscription may be required

Moda Decision Affecting Risk Corridor, CSR Litigation; Sen. Alexander Pushes for Sec. 1332 Waiver Flexibility

"As expected given the stakes, Moda Health Plan has indicated that it will appeal the Federal Circuit's decision. In the meantime, other litigation over risk corridor payments -- which had been stayed pending the Federal Circuit's decision -- can proceed. There are currently two additional cases on risk corridor payments before the same panel of judges on the Federal Circuit." Katie Keith, in Health Affairs

Individuality in Healthcare: The Massive Influence of Employers

"[Know] your employee community well enough to understand the factors that have the biggest influence on the health of the diverse employee populations you serve.... [Have] strategies in place to get to know employees as individuals and to pair that individuality with inclusion to achieve better outcomes." Forbes

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Key Themes on Benefit Administration

"Today's workforce now spans five generations ... Employers, especially those facing a shortage of skilled labor, must prepare for an influx of all-new values, characteristics and behaviors.... To win the battle for employees' attention, to connect with them and guide them to smart benefit decisions, employers need to take a fresh approach to communication. One approach that makes a lot of sense is treating benefits like any other consumer good that employees 'buy,' and using marketing strategy and tactics to 'sell' them to employees." Benefitfocus

[Opinion]

DOL Publishes Comments on Proposed MHPAEA Model Disclosure Request Form

The DOL has begun posting comments on the revised Model Disclosure Template published in April of 2018. As of this date, 5 comments have been posted. The comment period ended June 22.
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

[Opinion]

DOL Publishes Comments on Proposed MHPAEA FAQs Part 39

The DOL has begun posting comments on the proposed MHPAEA FAQs published in April of 2018. As of this date, 38 comments have been posted. The comment period ended June 22.
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Benefits in General

[Official Guidance]

Text of IRS Disaster Relief Notice HI-2018-03, for Victims of Storms, Flooding, Landslides and Mudslides in Hawaii

"Victims of severe storms, flooding, landslides and mudslides that occurred starting on April 13, 2018 in Hawaii may qualify for tax relief ... Individuals who reside or have a business in the City and County of Honolulu and Kauai County may qualify for tax relief.... [C]ertain deadlines falling on or after April 13, 2018, and before Aug. 15, 2018, are granted additional time to file through Aug. 15, 2018." Internal Revenue Service [IRS]

Is Arbitration the Future for ERISA Claims?

"Absent further legislation by Congress amending the Federal Arbitration Act or state legislation permitting private attorney general actions such as California's Private Attorneys General Act, the enforceability of mandatory arbitration programs with class waivers can be assured. Employers and plan sponsors who do not have such arbitration programs need to be aware of this significant development and at least consider whether an arbitration program with a class waiver is appropriate for them" Seyfarth Shaw, via Lexology

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David Rhett Baker, J.D., Editor and Publisher
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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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