July 18th – July 22nd, 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
The Evolving Roll of Risk Officers in the Corporate World
“The increasing frequency of natural disasters and the rise of ESG are a few factors that have contributed to insurance companies placing a greater focus on mitigation and prevention. For the insurance industry the risk management side of their business has become more important than ever before. However, in the corporate world outside the insurance industry, risk management has also been evolving.” Full Article
– Insurance Business America
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Self-Insured Health Plans: August 1st PCORI Fee Due Date is Rapidly Approaching “Dental plans and vision plans that are excepted benefits are not subject to PCORI fees. Similarly, health flexible spending accounts that are excepted benefits are not subject to PCORI fees. For plans with plan years that ended on or after January 1, 2021, through September 31, 2021, the fee is $2.66 per covered life. For plans with plan years that ended on or after October 1, 2021, through December 31, 2021, the fee is $2.79 per covered life.” Full Article – Jackson Lewis P.C.
HHS Issues Guidance on Post-Dobbs PHI Protections Under HIPAA Privacy Rule “The HHS guidance outlines the types of non- healthcare disclosures of PHI that are permitted without an individual’s authorization. The guidance also describes how the Privacy Rule applies to such disclosures in the context of PHI that contains abortion and other sexual and reproductive healthcare information. For each such disclosure, HHS emphasizes that covered entities are permitted, but not required, to disclose the PHI.” Full Article – Ogletree Deakins
Health Plan’s Blanket Exclusion for Wilderness Therapy Violated MHPAEA “Accepting the dependent’s argument, the court concluded that for parity analysis purposes, skilled nursing facilities were the medical/surgical analog to residential treatment centers for MH/SUD conditions. Next, the court noted that there was no evidence that the administrator would deny benefits in a skilled nursing facility (on the medical/surgical side) merely because the care occurred in a wilderness setting. According to the court, this tended to support the dependent’s argument that the administrator had created a wilderness treatment exclusion that applied only to behavioral health programs — in violation of MHPAEA.” Full Article – Thomson Reuters Practical Law
May Abortions Be Reimbursed on a Tax-Free Basis from a Health FSA, an HRA, or an HSA? “The following expenses may be reimbursed from an FSA, HRA, or HSA under current federal tax law: [1] The cost of the abortion procedure, if legal; [2] Transportation expenses, if out-of-state travel is required; and [3] Lodging (up to $50 per night), assuming that the care is received from a physician in a hospital or an equivalent facility. Many issues will depend on the interpretation of the IRS or the courts.” Full Article – Dickinson Wright
Amendment to Group Health Plan Fee Disclosure Rules Can Reduce Plan Costs “Now that plan fiduciaries have easier access to the compensation paid to these service providers, they can judge whether the compensation is reasonable and potentially cut costs by switching service providers…. Fiduciaries could also explore eliminating indirect compensation to service providers to save costs.” Full Article – Hall Benefits Law
Fourth Circuit Revives Retirees’ Claim of Vested Retiree Life Insurance Coverage “The Fourth Circuit agreed with the plaintiffs that if their retiree life insurance coverage were ever a vested benefit, PPG could not rely on the later-added reservation of rights clause to terminate that coverage. If the removal of the prior reservation of rights clause in 1969 vested retiree life insurance coverage for Plan participants working between 1969 and 1984, then the 1984 reservation of rights clause only allowed PPG to modify or terminate retiree life insurance coverage for participants hired after the clause’s adoption.” Full Article – Roberts Disability Law
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.
CALIFORNIA
Lights, Camera . . .West Hollywood Paid Time Off Ordinance
“West Hollywood has joined the growing ranks of California cities that have their own local sick leave and/or minimum wage requirements. West Hollywood enacted an ordinance that creates new paid and unpaid time off mandates as well as minimum wage obligations and mandates the distribution of service charges. The new ordinance went into effect for most employers July 1, 2022.” Full Article
– Seyfarth Shaw
NEW MEXICO
If Pain, Yes Gain—Part 101: New Mexico Paid Sick Leave Law in Effect Today; Final Rules, Model Poster and FAQs Available
“The New Mexico statewide paid sick leave law is in effect as of July 1, 2022. The state recently released a series of related materials—final rules, detailed FAQs, model posters, a policy compliance checklist, and a guide to the law.” Full Article
– Seyfarth Shaw
LOUISIANA
Now I Know My CBDs – Louisiana Court Favors Employee Terminated for Failing Marijuana Test
“You can purchase CBD legally in all U.S. states, but most states still have laws making THC (the psychoactive component in marijuana) illegal, especially without a prescription. However, CBD can trigger a positive drug test. Hemp-derived CBD may contain low levels of THC that show up on a drug test. The Eastern District of Louisiana tackled this very issue in considering if the ADA protects an employee when a positive drug test may have been triggered by CBD use.” Full Article
– Bradley Arant Boult Cummings
NEW JERSEY
Non-Disparagement Provisions Not Barred by NJLAD’s #MeToo Amendments, For Now
“In response to the #MeToo movement, New Jersey enacted N.J.S.A. 10:5-12.8, which amended the New Jersey Law Against Discrimination (NJLAD) to prohibit, in employment contracts or settlement agreements, any non-disclosure or confidentiality provisions that have “the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment.” In Savage v. Township of Neptune, No. A-14: 5-20, the Appellate Division confronted the question of whether N.J.S.A. 10:5-12.8 also applies to non-disparagement provisions, and concluded it does not.” Full Article
– Littler Mendelson
ILLINOIS
New Legal Obligations for Chicago and Illinois Employers
“As of July 1, 2022, amendments to the Chicago Human Rights Ordinance went into effect, requiring employers with at least one employee working within the city’s boundaries to update sexual harassment policies; display new posters; and augment their sexual harassment training. Employers who fail to comply could face fines of up to $10,000 per day.” Full Article
– Benesch Friedlander Coplan & Aronoff
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