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DOJ Proposes Restrictions on Transactions Involving Bulk Sensitive Data, Including Health Data

On October 29, 2024, the US Department of Justice (DOJ) issued a proposed rule to implement US President Joe Biden’s Executive Order (EO) 14117. This order aims to prevent countries of concern from accessing Americans’ sensitive personal data and US-government-related data. The proposal specifically includes health data as a category of sensitive personal data that could be exploited. Health insurers, service providers to health plans, and healthcare providers should review this proposed rule closely.

Read more here.




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Virtual Care Policy Update: What to Expect in Lame Duck

The Consolidated Appropriations Act (CAA), 2023 (Public Law 117-328), extended certain key virtual care flexibilities instituted during the COVID-19 public health emergency through December 31, 2024. This includes the telehealth safe harbor for health savings account-eligible high deductible health plans. Without congressional action, these waivers and flexibilities will end on December 31, 2024.

Read the latest update from McDermott+ for more information on these policies, relevant regulatory and congressional action, and the likelihood of further extensions before the end of this year.




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IRS Releases Regulatory Notices Related to Health Plan Coverage of Contraceptives

The Internal Revenue Service (IRS) recently released Internal Revenue Bulletin 2024-44. The Bulletin includes Notice 2024-71, which provides a safe harbor under Internal Revenue Code § 213(d), treating amounts paid for condoms as medical care expenses eligible for reimbursement under various health plans. It also includes Notice 2024-75, which expands the list of preventive care benefits that high-deductible health plans can provide without a deductible or with a lower deductible, including benefits for over-the-counter oral contraceptives and condoms.

Read more in this Weekly IRS Roundup.




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Government Announces 2025 Employee Benefit Plan Limits

The Internal Revenue Service (IRS) has announced the cost-of-living adjustments to the applicable dollar limits for various employer-sponsored retirement and welfare plans for 2025. Most of the dollar limits that are subject to adjustment for cost-of-living increases will increase for 2025. The Social Security Administration released separate adjustment amounts.

See the amounts here.




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Election 2024: Reproductive Rights in the US

With the US election less than one week away, what are the legal implications of a Harris-Walz administration versus a Trump-Vance administration on reproductive rights? In this Q&A, Sarah Raaii explores how the election’s outcome could impact how plan sponsors and employers address reproductive care, including fertility treatments like in vitro fertilization.

Read the Q&A here.




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Election 2024: Gender-Affirming Care in the US

With the US election one week away, what are the legal implications of a Harris-Walz administration versus a Trump-Vance administration regarding gender-affirming care? In this Q&A, Greg Fosheim, Sarah Raaii, and Alden Bianchi discuss how the election’s outcome could affect clients in the employee benefits and healthcare spaces.

Read the Q&A here.




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The Case for the Welfare Plan Fiduciary Committee

Employee Retirement Income Security Act class action lawsuits filed earlier this year against the group health plans of two large US employers underscore the importance of implementing formal welfare benefit plan governance structures that include fiduciary committees comparable to the governance structures employer sponsors of retirement plans routinely adopt.

This recent article, published by the Society for Human Resource Management, offers plan sponsors a list of practical action items to consider to help protect themselves from risks related to the fiduciary governance of their health and welfare plans.

Access the article.




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2024 Final Mental Health Parity Regulations: First Impressions

Alden Bianchi, Jake Mattinson, and Sarah Raaii recently authored an article in ALM Benefits Pro commenting on the final Mental Health Parity and Addiction Equity Act (MHPAEA) regulations issued last month by the Biden administration. While some of the more objectionable features of the proposed MHPAEA regulations were not finalized, they argue that their basic structure remains fully intact, including provisions that employers found most burdensome.

Read more here.




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Webinar Replay: Unpacking the Final Mental Health Parity Regulations

On September 9, 2024, the Biden administration issued much-anticipated final regulations under the Mental Health Parity and Addiction Equity Act (MHPAEA). The rules implement a host of complicated new compliance requirements for sponsors and issuers of health plans, instituting new obligations to collect and evaluate plan data, conduct comparative analyses, and act to address material differences in access to mental health and substance abuse benefits as compared to medical and surgical benefits.

During a recent webinar, Alden BianchiJake Mattinson, and Sarah Raaii provided a comprehensive overview of the new rules, including compliance deadlines and key takeaways for employers, plan sponsors, and issuers of group health plans. The speakers also addressed how the new rules might impact any ongoing US Department of Labor investigations.

Access the recording here.




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