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Health & Welfare Plans Newsletter

May 3, 2024

[Guidance Overview]

HHS Finalizes Changes with Respect to Strengthening the Privacy of Reproductive Health Care Information Under HIPAA

"The Final Rule modifies the Privacy Rule to limit circumstances in which an individual's PHI about reproductive health care may be used or disclosed for non-health care purposes ... The PHI covered by the Final Rule includes information related to reproductive health care services ... that was lawfully obtained."   MORE >>

Ropes & Gray LLP

Fourth Circuit Holds That State Health Plan Exclusions Violate Equal Protection Clause

"On appeal, the states' principal argument was that the exclusions restricted coverage based on diagnosis, not suspect class -- i.e., the exclusions prevented all patients from receiving coverage for excluded treatments based on a diagnosis of gender dysphoria, regardless of the sex or gender identity of the individual patient. The Fourth Circuit rejected the states' argument, holding that it 'elides common sense and is inconsistent with Supreme Court precedent about how to approach equal-protection analyses,' which focuses on 'the group for whom the law is a restriction, not the group for whom the law is irrelevant.' " [ Anderson v. Crouch , No. 22-1721 (4th Cir. Apr. 29, 2024)]   MORE >>

Miller & Chevalier

Flexible Spending Accounts, 2022: Forfeitures on the Rise

"The average FSA contribution in 2022 was $1,291. The vast majority -- 85 percent -- of accountholders took a distribution in 2022. Among those who did, the average distribution was $1,323.... Roughly half of FSA accountholders forfeited funds to their employer in 2022. The average forfeiture was $441."   MORE >>

Employee Benefit Research Institute [EBRI]

How Employers Can Help Younger Generations Benefit from HSAs

"Recent research ... has found only 6% of working Americans ages 18 to 34 correctly identified the full benefits of an HSA ... While offering an HSA option to one's workforce is important, educating younger generations just entering the workforce on the values of an HSA is especially critical."   MORE >>

401(k) Specialist

[Opinion]

AHIP Letter to OCR on Cyber Breach Notification Obligations Following Change Healthcare Incident (PDF)

"At [the May 1 hearing ] held by the House Energy & Commerce Committee, United CEO Andrew Witty said, 'we are offering to take full responsibility for all notification obligations for everyone involved in this.' [AHIP supports] this approach and agree that guidance from the Office of Civil Rights should clearly state that only Change has an obligation to perform breach notification in this context. That clarity would avoid tens of millions of Americans being left confused, frustrated and inundated by multiple notifications."   MORE >>

America's Health Insurance Plans [AHIP]

Benefits in General

[Guidance Overview]

Exceptional Usefulness and Quality icon FTC Issues Clumsy, Overbroad Noncompete Rule; It Probably Will Fail

"Employers should not stop using noncompetes, at least if and until the Rule actually becomes effective.  ... If the Rule is not enjoined a month before the effective date, employers should: ... [1] Implement stronger NDAs and non-solicitations with workers with noncompetes. [2] Try to limit sharing of confidential information and building of relationships with the least number of people. [3] For people that the company feels a noncompete is essential, consider having an 'interim period' where the worker promises to stay a worker for a few hours a week (likely remotely and just doing transitional duties) upon notice of resignation or termination for a period of time (and during the period of time, you can have a noncompete)."   MORE >>

Partridge Snow & Hahn LLP

[Guidance Overview]

Ban on Non-Competition Agreements: What Employers Need to Know and Do Now

"Not-for-profits should perform a careful analysis to determine if they are subject to the final rule or if any of their businesses are subject to the final rule before any notices are sent to employees.... [E]mployers concerned with protecting their confidential and proprietary information should not only eliminate non-competes from their employment agreements but also carefully review and revise non-solicit, non-disclosure, and other restrictive covenants to ensure that they are narrowly tailored to protecting the employer's confidential and proprietary information."   MORE >>

The Wagner Law Group

Employee Benefits Jobs

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BenefitsLink ® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.

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