EBIA Weekly Newsletter

After Data Breach, Court Turns Away Health Plan Participants Whose Personal Data Was Not Misused

   March 9, 2017

Fero v. Excellus Health Plan, Inc., 2017 WL 713660 (W.D.N.Y. 2017) Following a health plan’s announcement that hackers had gained access to the personal information of millions of individuals, several affected individuals brought a class action alleging tort, contract, and other state-law claims against the health plan and affiliated entities. Some of the claimants (the … Read More

Eighth Circuit: ERISA Preempts State Law Governing Pharmacy Benefit Management Practices

   March 9, 2017

Pharmaceutical Care Mgmt. Ass’n v. Gerhart, 2017 WL 104467 (8th Cir. 2017) Available at http://media.ca8.uscourts.gov/opndir/17/01/153292P.pdf After Iowa enacted a law imposing various requirements on pharmacy benefit managers (PBMs), an association representing PBMs challenged the law, asserting that it was preempted by ERISA. (ERISA generally preempts state laws that “relate to” ERISA plans.) Key … Read More

IRS Audit Guidelines Provide Some Documentation Relief for Substantiating 401(k) Plan Safe Harbor Hardship Distributions

   March 9, 2017

Memorandum for Employee Plans (EP) Examinations Employees: Substantiation Guidelines for Safe-Harbor Hardship Distributions from Section 401(k) Plans, TE/GE-04-0217-0008 (Feb. 23, 2017) Available at https://www.irs.gov/pub/foia/ig/spder/tege-04-0217-0008.pdf The IRS has a released a memorandum to its Employee Plans (EP) examination employees that establishes audit guidelines for substantiating safe harbor hardship distributions from 401(k) plans. A hardship … Read More