EBIA Weekly Newsletter

Will a Retiree-Only Plan Jeopardize Its Exempt Status If It Also Covers Individuals on Long-Term Disability?

   June 15, 2017

QUESTION: Our company maintains a medical plan for retirees and individuals on long-term disability. Can we continue to treat this plan as exempt from HIPAA portability and certain health care reform mandates? ANSWER: A retiree-only plan that also covers individuals on long-term disability can meet the requirements for exemption from compliance with HIPAA portability and … Read More

DOL Advises Cooperative on ERISA’s Bona Fide Association Requirement

   June 8, 2017

DOL Advisory Opinion 2017-02AC (May 16, 2017) Available at https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/advisory-opinions/2017-02ac The DOL has issued an advisory opinion concluding that a dairy cooperative’s proposed arrangement for providing group health benefits to unrelated employers would be an employee welfare benefit plan and a multiple employer welfare arrangement (MEWA) under ERISA. The long-standing cooperative—whose … Read More

Supreme Court Rules That Benefit Plans Established by Church Affiliates Are Exempt From ERISA

   June 8, 2017

Advocate Health Care Network v. Stapleton, 2017 WL 2407476 (U.S. 2017) Available at https://www.supremecourt.gov/opinions/16pdf/16-74_5i36.pdf The U.S. Supreme Court has concluded that employee benefit plans established by church-affiliated organizations are church plans for purposes of ERISA’s church plan exemption. As background, a 1980 amendment brought plans “maintained” by church-affiliated organizations into ERISA’s … Read More

Can Our Company’s DCAP Reimburse Overnight Camp Expenses?

   June 8, 2017

QUESTION: Several of our company’s employees send their children to overnight camps during the summer. Can our company’s DCAP reimburse overnight camp expenses? ANSWER: The short answer is no—your company’s DCAP cannot reimburse expenses for care at a camp where an employee’s child stays overnight. Expenses must be “employment-related expenses” in order to be reimbursed … Read More