August 29th – September 2nd, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Breaking Down Inflation’s $30B Impact on Insurers Line By Line
“Experts at McKinsey & Company estimate that inflation pushed loss costs for property/casualty insurers up roughly $30 billion last year, with nearly three-quarters of that figure coming through personal lines.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Federal Officials Revise Approach to Arbitration Under No Surprises Act “The final rule’s most significant change is elimination of the ‘rebuttable presumption’ in favor of the QPA, a part of the interim final rule that has been the subject of eight lawsuits from providers and two court decisions thus far…. The final rule … does not dictate which offer the IDR entity should select. It instead focuses on the process that IDR entities should use when choosing between two competing offers.” Full Article – Health Affairs
Inflation Reduction Act Indirectly Impacts Employer-Sponsored Group Health Plans – Thomson Reuters / EBIA
“Expanded eligibility for the premium tax credits could increase penalty exposure for ALEs that do not offer affordable, minimum-value coverage to all full- time employees. The improvement to Medicare Part D drug coverage may affect the analysis of whether employer-sponsored prescription drug coverage is ‘creditable,’ i.e., at least as good as standard Part D prescription drug coverage.” Full Article
Employers May Have to Pay More in 2023 as Affordability Threshold Hits New Low “For plan years beginning in 2023, a plan will meet the ACA affordability requirement under the FPL safe harbor if an employee’s required contribution for self-only coverage does not exceed $103.28 per month.” Full Article – Seyfarth
IRS Ignoring Clear Requirements of IRC Section 4980H When Issuing Employer Mandate Penalties – Violating Employers Due Process Rights “One issue that has been percolating since the IRS began enforcing the employer mandate penalties under Internal Revenue Code section 4980H in late 2017 is whether the IRS even had the authority to do so in light of the fact that very few section 1411 notices were ever provided to employers.” Full Article – Accord
HHS Again Proposes Nondiscrimination Regs Under Section 1557 of the ACA “While gender identity and sexual orientation protections are a primary focus of the proposed regulations, along with protections for disabled individuals and individuals with limited English proficiency (LEP), a number of other issues are addressed, including several for which HHS has requested comments.” Full Article – The Wagner Law Group
Two Recent Cases Provide Important ERISA Reminders “The reminders in one recent case are: [1] the DOL does audit many plans of many sizes, and [2] blatantly ignoring the requirements of ERISA when administering or amending an ERISA plan or the advice of your counsel and other advisors on the hope that you will not be audited is not prudent or smart.” Full Article – Foley & Lardner LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
COLORADO
Colorado Continues to Whittle Away at Non-Compete Agreements
“Effective August 10, 2022, Colorado’s laws governing restrictive covenants shall be amended to provide additional limitations and hurdles for employers who seek non-compete and non-solicit agreements with their employees, including compensation thresholds and notice requirements. The new law also sets forth steep penalties for any violations. This article provides the details of these new restrictions.” Full Article
– McDermott Will & Emery
MASSACHUSETTS
Massachusetts Appeals Court Says Home Inspectors Were Independent Contractors — Not Employees
“On August 11, 2022, Governor Hochul signed the Green CHIPS On July 13, 2022, the Massachusetts Appeals Court issued a decision in Tiger Home Inspection, Inc. v. Dir. of the Dep’t of Unemployment Assistance. The Appeals Court held that home inspectors were classified properly as independent contractors under the state Unemployment Insurance (“UI”) law. In so holding, the Appeals Court reversed both a state agency and a lower court that found the home inspectors at issue were misclassified employees.” Full Article
– Seyfarth Shaw LLP
CONNECTICUT
Connecticut’s Pandemic “Hero Pay” Program Goes into Effect
“Private-sector essential employees who worked in Connecticut during the pandemic may receive up to $1,000 in premium pay (i.e., “hero pay”), through a $30 million fund established under the state budget approved by the General Assembly and Governor Ned Lamont.” Full Article
– Jackson Lewis PC
CALIFORNIA
Cal/OSHA Releases Revised Draft of Workplace Violence Prevention Regulation
“The California Division of Occupational Safety and Health (Cal/OSHA) released a revised workplace violence prevention regulation draft. If Cal/OSHA adopted the regulation, it would become a part of the General Industry Safety Order (GISO) of the California Code of Regulations. Cal/OSHA seeks interested parties to submit written comments on the draft no later than July 18, 2022.” Full Article
– Hall Benefits Law LLC
WASHINGTON
Washington State Adopts Emergency Heat and Wildfire Rules
“This summer is shaping out to be another scorcher and Washington State employers should know about the Department of Labor & Industries (“LNI”) new emergency requirements for heat and smoke protections for outdoor employees effective June 15 through September 29.” Full Article
– Jackson Lewis PC
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