February 14th – February 18th, 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
10 Cyber Attacks in 2021 Cost $600M With 40,000 Businesses Put at Risk
“In just 10 cyber incidents last year, over $600 million in cash was stolen or taken as ransom, tens of millions of citizen records stolen, 40,000 businesses’ IT operations put at risk, one billion airline passenger details compromised and at least one bank was effectively shut down for over a week, according to Tokio Marine HCC International’s (TMHCCI) second annual Cyber Incidents Report. The vast majority of the incidents listed in this year’s top 10 involved large institutions where cyber security plays an integral role in operations, but this did not prevent their sophisticated defense systems from coming under attack, confirmed the report, titled “Top 10 Cyber Incidents 2021.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Medical Plan Surcharge for COVID-19 Unvaccinated: Checklist for Plan Sponsors (PDF) “A medical plan surcharge for the COVID-19 unvaccinated is workable, but complex. To implement a surcharge for COVID-19 unvaccinated participants, plan sponsors need to take these steps.” Full Article – Fox Rothschild LLP
The 2021 Mental Health Parity Grades Are In: Everybody Failed “The DOL issued 156 letters to plan sponsors and insurance providers requesting information about comparative analysis for NQTLs, and the initial responses were all insufficient. [The report] contains helpful information for those sponsors who were not part of the initial investigation. The agencies characterized the responses as generic, unresponsive, and lacking in sufficient detail and supporting documentation.” Full Article – Jackson Lewis P.C.
You Have Questions, the Government Has Answers Regarding Group Health Plan Coverage of At-Home COVID-19 Tests “When providing coverage of at-home tests through a direct-to-consumer arrangement, group health plans must cover reasonable shipping costs and sales tax in a manner consistent with other items or products provided by the group health plan via mail order. The direct coverage arrangement does not have to cover every eligible test from every manufacturer.” Full Article – Miller Johnson
In COBRA Election Notice Dispute, Court Requires Employer to Provide Retroactive Coverage and Pay Penalties “The district court found that the employer’s failure to correct the participant’s COBRA eligibility date was arbitrary and capricious. The court reasoned that the employer’s decision to use January 1, 2014, as the end date for the participant’s active-employee coverage was inconsistent with: The COBRA election notice furnished to the participant [and the] employer’s decision to pay for his active-employee coverage through February 28.” Full Article – Thomson Reuters Practical Law
Illinois Employers: Are You Complying with the Consumer Coverage Disclosure Act? “The Illinois Consumer Coverage Disclosure Act (CCDA) requires that Illinois employers provide a disclosure to employees regarding how the employer’s group health plan compares with the essential health benefits under the Illinois benchmark plan. While Illinois takes the position that the law applies to employers with self- insured plans, a court may not necessarily agree if an employer was willing to challenge the law on ERISA preemption grounds.” Full Article – Groom Law Group
Washington Legislature Instructs Employers Not to Deduct WA Cares Act Premiums “Employers should immediately stop any WA Cares payroll deduction. Employers that collected any premium from employees with the first paychecks of 2022 under the then-existing version of the Act have 120 days to refund those premiums to employees in full. Employers should maintain copies of all exemption approval letters for those employees who purchased their own insurance and obtained approved exemptions. Be aware of new exemptions.” Full Article – Fisher Phillips
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.
New York
New York City and State Update COVID Quarantine and Isolation Guidance to Align with CDC’s Shortened Timeframes
“New York City updated its quarantine and isolation guidance to align with the CDC’s recent shortening of both (i) the recommended timeframe for isolation following a COVID-19 diagnosis for individuals regardless of vaccination status, and (ii) the recommended quarantine period following a COVID-19 exposure for vaccinated individuals. New York State has also updated its guidelines to reflect these changes.” Full Article
– Proskauer Rose
New Jersey
New NJ Law Requires Employers to Warn Employees About Tracking Devices in Vehicles
“Employers have placed tracking devices on vehicles used by their employees for good reason: to ensure that employees are where they are supposed to be during working time. However, based on a recently enacted law in New Jersey, private sector employers must warn employees before they utilize a tracking device in a vehicle used by an employee. The employer’s failure to disclose this information comes at a notable cost.” Full Article
– Stevens & Lee
Illinois
Illinois Employers See Equal Pay Certification Looming on the Horizon
“Last year, Illinois made sweeping amendments to its state Equal Pay Act (EPA). Governor J.B. Pritzker twice signed bills passed by the Illinois legislature — first on March 23, 2021, and then on June 25, 2021, (the EPA amendments) — the cumulative effect of which gives Illinois perhaps the most robust and onerous (for employers) equal pay law in the nation.” Full Article
– Cozen O’Connor
Connecticut
Connecticut FMLA: Proposed Regulations Released for Comment
“The Connecticut Department of Labor has released proposed regulations for the amended Connecticut Family and Medical Leave Act, which was effective January 1, 2022. The proposed regulations will be subject to a 30-day comment period, ending on February 28. A virtual hearing on the proposed regulations will take place on February 17.” Full Article
– Jackson Lewis
District of Columbia
District of Columbia Issues New Mandatory COVID-19 Leave Poster
“The D.C. Office of Human Rights (OHR), published an updated poster on DCFMLA COVID-19 leave. Employers with 20 or more employees in the District are required to post this poster in a conspicuous place in the workplace. We recommend that the poster also be posted electronically for employees who work remotely.” Full Article
– Hogan Lovells
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