EBIA Weekly Newsletter

Participant Cannot Take Hardship Distribution to Pay Child’s Student Loans


   April 26, 2018

IRS Information Letter 2018-0001 (Jan. 11, 2018) Available at https://apps.irs.gov/app/picklist/list/informationLetters.html The IRS has released an information letter explaining that a participant cannot take a 401(k) plan hardship distribution to pay off his daughter’s student loans. Hardship distributions may be offered by 401(k) plans to satisfy participants’ immediate and heavy financial needs … Read More


Employer Defeats COBRA Claims of Employee Offered Subsidized Coverage in Severance Agreement


   April 19, 2018

Thorson v. Aviall Servs., Inc., 2018 WL 1426971 (N.D. Tex. 2018) Available at https://www.gpo.gov/fdsys/pkg/USCOURTS-txnd-3_15-cv-00571/pdf/USCOURTS-txnd-3_15-cv-00571-3.pdf The mother of a deceased employee sued her son’s former employer and benefits administrator, alleging breach of a severance agreement and numerous COBRA violations. As part of a corporate restructuring, the employer and employee had entered into … Read More


CMS Issues 2019 Medicare Part D Benefit Parameters Used for Creditable Coverage Disclosures


   April 19, 2018

Announcement of Calendar Year (CY) 2019 Medicare Advantage Capitation Rates and Medicare Advantage and Part D Payment Policies and Final Call Letter (Apr. 2, 2018) Available at https://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Downloads/Announcement2019.pdf Under Medicare Part D regulations, most group health plan sponsors offering prescription drug coverage to Part D eligible individuals (including active or disabled … Read More