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
Bill Would Offer Crop Insurance Discount to Farmers Who Plant Cover Crops
“A bipartisan bill proposed by federal lawmakers would provide farmers a discount on crop insurance premiums by planting cover crops. The Conversation Opportunity and Voluntary Environment Resilience (COVER) Act, proposed last week by Sen. Sherrod Brown, D-Ohio, and Reps. Sean Casten, D-Ill., Elissa Slotkin, D-Mich., and Mike Bost, R,-Ill., would amend the Federal Crop Insurance Act to establish a program that rewards farmers who plant cover crops with a $5/acre discount on crop insurance. The legislation is based off programs in place in Indiana, Iowa, and Illinois. A cover crop is any crop grown to cover the soil and may be incorporated into the soil later for enrichment, according to the USDA. Cover crops, which include legumes, grasses, and forbs, help with soil erosion, improve soil health and crowd out weeds. They are typically planted in September or October. A 2023 study published in the American Journal of Agricultural Economics found that counties with higher rates of cover crop adoption tend to have lower levels of crop insurance losses.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Executive Summary: Tracking Telehealth Changes State-by-State in Response to COVID-19 ““Updated May 19, 2023. Descriptive list of current and proposed state and federal guidance, regulations, and legislation.” Full Article – Manatt, Phelps & Phillips LLP
More Federal Action in the Pharmaceutical Sector as PBM Bill Advances in the Senate “The Pharmacy Benefit Manager Act reflects the overarching legislative push by members from both sides of the aisle and chambers of Congress to address drug pricing issues through federal fixes to the PBM framework.” Full Article – Epstein Becker & Green, P.C.
Fifth Circuit Stay Reinstates Preventive Services Mandate — For Now “Plan sponsors should remember that the Fifth Circuit administrative stay is not a decision on the merits of the underlying case. The Fifth Circuit pressed pause on the district court order so that the pre- Braidwood preventive services mandate would remain intact for now while the case proceeds.” Full Article – Proskauer Rose LLP
IRS Announces 2024 Limits for Health Savings Accounts, High-Deductible Health Plans and Excepted Benefit HRAs “All of the dollar limits currently in effect for 2023 will change for 2024, with the exception of one limit. The HSA catch-up contribution for individuals ages 55 and older will not change as it is not subject to cost-of-living adjustments.” Full Article – McDermott Will & Emery
Providers Score More Victories in First Year of NSA Arbitrations ““In the year following the implementation of the arbitration process established under the federal No Surprises Act (NSA), more than 330,000 disputes have been submitted for resolution. This figure far outpaces the predictions of the US Departments of Health and Human Services (HHS), Labor, and the Treasury (the Departments), and complicates the implementation of the NSA.” Full Article – ArentFox Schiff LLP
First Gag Clause Attestations Due December 31, 2023- What Group Health Plan Sponsors Need to Know “Plan sponsors and carriers of fully insured plans are both required to submit a Gag Clause Prohibition Compliance Attestation (GCPCA). FAQs Part 57 provide that if the insurance carrier submits the GCPCA on behalf of the plan, the Departments will consider the plan (and insurer) compliant. Sponsors of fully insured plans, however, should confirm that the carrier will be submitting the GCPCA on the plan’s behalf.” Full Article – Hunton Andrews Kurth 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.
FLORIDA
Florida Poised to Mandate Use of E-Verify for Private Employers
“The Florida Legislature has passed a bill that, if enacted, will require private employers with 25 or more employees to use the federal E-Verify system to verify the employment eligibility of newly hired employees beginning July 1, 2023. The bill, SB 1718, is expected to be signed into law by Governor Ron DeSantis.” Full Article
– Proskauer Rose LLP
NEW YORK
New York Minimum Wage to Increase Again
“The Fiscal Year 2024 New York State Budget (the “Budget”) includes a multi-year plan to increase the State’s minimum wage starting on January 1, 2024. The new statutory minimum wage rates apply to all New York employers regardless of size.” Full Article
– Seyfarth Shaw LLP
MARYLAND
Maryland Modifies its Paid Family and Medical Leave insurance Program
“Maryland became the eleventh state (in addition to the District of Columbia) to adopt a statewide family and medical leave program (the “Program”). The Maryland General Assembly recently concluded its 2023 session and passed modifications to the Program.” Full Article
– Littler Mendelson P.C.
WASHINGTON
Washington State to Bar Employers from Relying on Off-Duty Use of Marijuana in Hiring Decisions
“The state of Washington will prohibit employers from making hiring decisions based on off-duty use of cannabis or positive pre-employment drug test results that find an applicant to have non-psychoactive cannabis metabolites in their hair, blood, urine, or other bodily fluids. The new law (SB 5123) takes effect on January 1, 2024.” Full Article
– Jackson Lewis P.C.
ILLINOIS
Illinois Department of Labor Amends Regulations on Employer Reimbursement of Employee Expenses
“The regulations establish a new five-factor test for assessing whether an employer must reimburse expenses. The amended regulations also impose new record-keeping requirements on employers.” Full Article
– Barnes & Thornburg LLP
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