EBIA Weekly Newsletter

Should We Correct Mistakes in Our Cafeteria Plan’s Administration?


   March 16, 2017

QUESTION: We recently learned about some mistakes that have been made in administering our company’s cafeteria plan. For example, we discovered a few health FSA and DCAP expense reimbursement errors, and a couple of employees are not having the right salary reduction amounts withheld. Should we correct mistakes like these? ANSWER: In general, if there … Read More


Court Revives COBRA Claim of Employee Terminated for Stealing Stale Cake


   March 9, 2017

Mayes v. Winco Holdings, Inc., 2017 WL 461484 (9th Cir. 2017) Available at http://cdn.ca9.uscourts.gov/datastore/opinions/2017/02/03/14-35396.pdf The Ninth Circuit has reinstated the employment discrimination and COBRA claims of a grocery store supervisor who was fired for allowing the night-shift freight crew to eat a cake from the store bakery’s “stales cart.” The supervisor claimed that … Read More


IRS Issues 2016 Version of Publication 969 on HSAs, HRAs, Health FSAs, and MSAs


   March 9, 2017

IRS Publication 969 (Health Savings Accounts and Other Tax-Favored Health Plans (for 2016 Tax Returns)) Available at https://www.irs.gov/pub/irs-prior/p969–2016.pdf Publication 969 has been updated for use in preparing 2016 tax returns. This publication provides basic information about HSAs, HRAs, health FSAs, Archer MSAs, and Medicare Advantage MSAs, including brief descriptions of benefits, eligibility requirements, … Read More


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