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
Tesla Launched its Own Car Insurance. These Drivers Say it’s a Lemon. “In February, Mark Bova purchased a used 2018 Tesla Model S. Before leaving the dealer, he bought insurance from Tesla, finding the initial $93 monthly premium “really reasonable.” Sixteen days later, as he drove along the Capital Beltway to his Maryland home, he engaged Autopilot, Tesla’s automated driving system. The car started beeping and lurched left — striking a median and flipping. He escaped through a window as the car filled with smoke. An ambulance rushed him to the hospital with back injuries that later required surgery.” Full Article – Insurance Journal
Schools Look to Improve Cybersecurity, but Many Vulnerable to Ransomware “Some K-12 public schools are racing to improve protection against the threat of online attacks, but lax cybersecurity means thousands of others are vulnerable to ransomware gangs that can steal confidential data and disrupt operations. Since a White House conference in August on ransomware threats, dozens of school districts have signed up for free cybersecurity services, and federal officials have hosted exercises with schools to help them learn how to better secure their networks, said Anne Neuberger, the Biden`s administration`s deputy national security advisor for cyber and emerging technology.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Bringing It All Together — Health and Welfare Plan Fiduciary Compliance Reviews “Fiduciaries should strive to mitigate risks proactively by formalizing a fiduciary compliance review process. A solid process involves evaluating plan documents, participant communications, service provider agreements, and service provider performance to identify potential risks. Making corrections and taking steps to minimize risk can help reduce the chance of costly litigation in the future.” Full Article – Nixon Peabody
11th Circuit Affirms District Court’s Approval of the BCBSA $2.67 Billion Settlement “Employers should be aware that they may have fiduciary duties under ERISA with respect to the use of any proceeds from the settlement fund…. Unless specific guidance is issued related to the BCBSA settlement, employers may want to use the [DOL’s] MLR guidance as a reference when determining how to calculate what portion of the BCBSA settlement proceeds should be considered ‘plan assets,’ and how those funds can be used.” Full Article – Miller Johnson Snell & Cummiskey P.L.C.
Draft of 2024 IRS Publication 15-B: Employer’s Tax Guide to Fringe Benefits (PDF) “35 pages; Nov. 17, 2023. “What’s New: [1] Cents-per-mile rule [2] Qualified parking exclusion and commuter transportation benefit [3] Contribution limit on a health flexible spending arrangement.” Full Article – Internal Revenue Service (IRS)
Self-Insured Health Plans: Adjusted PCORI Fee Announced for 2024 “For plans with plan years that ended on or after October 1, 2023, and before October 1, 2024, the fee is $3.22 per covered life. Employers who maintain self-insured health plans and HRAs … need not pay a separate PCORI fee for HRA-covered lives. However, employers who provide coverage through a fully insured plan … and an HRA must pay a PCORI fee based on the HRA.” Full Article – Jackson Lewis P.C.
The Proposed MHPAEA Regulations: A Comment on the Comments “A comment letter from the Brookings Institution] expresses concern over the depth of the analysis that is required for each NQTL [and] provides a useful schematic that fleshes out the particulars. The schematic makes the point that a substantial amount of effort is involved in demonstrating compliance for a single NQTL and all steps must be repeated for each additional NQTL.” Full Article – McDermott Will & Emery
In An Era of Premium and Provider Price Increases, State Employee Health Plans Target Key Cost Drivers “The agencies that purchase health insurance for [the more than 15 million] public employees … are often the largest commercial purchaser of health care services in their state and therefore have market power to exert pressure on insurance companies and providers. Their efforts to shift health plan and provider behaviors and encourage greater efficiencies can have ripple effects for other commercial purchasers.” Full Article – Health Affairs Forefront
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
Amendments to California’s Retaliation Law Lighten the Burden for Employees
“Governor Gavin Newsom signed Senate Bill (SB) No. 497 into law. SB No. 497, also referred to as the Equal Pay and Anti-Retaliation Protection Act, amends California Labor Code Sections 98.6, 1102.5, and 1197.5 to lessen the burden for employees attempting to establish a prima facie case of retaliation.” Full Article
– Crowell & Moring LLP
NEW YORK
How Harassment Complaints Are Handled by NYS’s Division of Human Rights
“Although intended to be less intimidating than a court proceeding, the process by which the New York State Division of Human Rights (the Division) handles complaints can be opaque and intimidating to many individuals, employers and other organizations. This article is intended to demystify things a bit.” Full Article
– Levy Employment Law, LLC
Revisions to New York Unemployment Notice to Take Effect
“Governor Kathy Hochul has signed a bill amending Section 590 of the New York Labor Law to require employers to provide employees, upon separation, with notice of their right to file for unemployment benefits with the New York Department of Labor (NYDOL). These changes will take effect on November 13, 2023.” Full Article
– Seyfarth Shaw LLP
ALABAMA
Changes to Alabama’s Tax Laws Impose New Reporting Requirements on Employers
“Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect December 3, 2023, and will cover all tax years beginning after December 31, 2023, and ending prior to June 30, 2025.” Full Article
– Littler Mendelson P.C.
ILLINOIS
Proposed Regulations for the Illinois Paid Leave for All Workers Act Offer Employers a Mixed Bag for Compliance
“The Illinois Department of Labor (IDOL) published much anticipated proposed regulations interpreting the Illinois Paid Leave for All Workers Act (the “Act”) set to take effect January 1, 2024. The Act will require nearly all covered Illinois employers to provide its covered employees up to 40 hours of paid leave per year, to be used ‘for any purpose.’” Full Article
– Littler Mendelson P.C.