Benefits Blast

The U.S. Department of Labor (Department) has released a policy statement and a Questions and Answers – Part Two (FAQ) in reaction to the district court for the District of Columbia’s ruling in State of New York v. U.S. DOL of Labor, which vacated a key part of the Department’s final regulations expanding the availability of association health plans (AHPs).

Frustrated with the high cost of health care, year-over-year trend increases, lack of transparency in pricing, and lack of control over data, employers are increasingly looking to value-based payment models as an alternative health care strategy to traditional narrow networks and fee-for-service pricing.

The Supreme Court recently held that ERISA health plans cannot recover amounts paid on behalf of an injured participant who later receives settlement proceeds from third parties if the participant has spent the proceeds on non-traceable items (for example, on services or consumable items).

There aren’t many issues upon which Republicans and Democrats can enthusiastically agree. But many folks on both sides of the aisle are united in their opposition to the so-called Cadillac Tax. The nickname “Cadillac Tax” implies that the tax will apply to only the richest health plans, but this is not the case. Based on employers’ current plans, experts predict that about 60% of employers would face the tax by 2022.