Keating Muething & Klekamp PLL have recently distributed their monthly update on significant Employee Retirement Income Security Act (ERISA) legal developments. The September Monthly Minute is directed to corporate legal professionals and covers three important areas: tobacco surcharge cases, gag clause attestation, and adjustments to the Affordable Care Act (ACA) affordability percentage.
The Monthly Minute begins by addressing yet another case brought by the Department of Labor (DOL) concerning the use of tobacco surcharges as part of health plan premiums. It is vital for legal professionals working in healthcare and insurance sectors to keep abreast of such developments, as they clarify the obligations of employers under ERISA and their duty to offer reasonable insurance options to staff regardless of tobacco use.
Of crucial importance is the impending deadline to prepare and submit the first annual gag clause attestation. The gag clause, often embedded in contracts between pharmacy benefit managers and pharmacies, prevents pharmacists from informing patients when prescription drug costs are cheaper without insurance. The ERISA plan administrators must be prepared for the annual attestation of these clauses.
The last subject in their latest update relates to policy changes on healthcare affordability. The ACA affordability percentage for 2024 has been lowered, a move that implies an increase in employer costs. This change in affordability percentage will impact large employers who now will need to offer a lower cost premium plan to avoid penalty, raising their costs.
Keating Muething & Klekamp PLL’s Monthly Minute provides a thorough breakdown of these issues and is an invaluable resource for legal professionals keen on staying informed about new legal and regulatory changes that affect employers and the health care industry more broadly.