20 Jul 2021
Another Turn at Bat: ACA Opponents Strike Out
In a 7-2 ruling, the U.S. Supreme Court held that plaintiffs in California v. Texas did not suffer an “injury” and thus lacked standing necessary to bring a case asserting that the Affordable Care Act was unconstitutional, once Congress eliminated the individual mandate penalty. Plaintiffs consisted of two individuals, plus nearly two dozen states led by Texas. The result: The Affordable Care Act, enacted 11 years ago, survives its third Supreme Court review. See California v. Texas, 2021 U.S. LEXIS 3119 (June 17, 2021).
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Stay informed on new developments.- ERISA Litigation
John Hancock agrees to pay $14 million and implement administrative procedures over allegations that the management of its 401(k) plan cost participants tens of millions of dollars, including due to the selection of high-fee and retention of underperforming proprietary funds. See Baker v. John Hancock Life Ins. Co. (U.S.A.), 2020 U.S. Dist. LEXIS 250613 (D. Ma. 2020); John Hancock Inks $14 Million Deal in 401(k) Self-Dealing Suit.
Supreme Court grants certiorari to hear appeal of 7th Circuit decision in Divane v. Northwestern Univ., 953 F.3d 980 (7th Cir. 2020), affirming dismissal of ERISA fiduciary breach suit arising from 403(b) plan that included investment options for which substantively identical institutional class funds having lower fees were available and service provider arrangements leading to excessive recordkeeping fees. Hughes v. Northwestern Univ., 2021 U.S. LEXIS 3583 (2021); High Court Onboards Big ERISA Suit. Leaves Others Behind.High Court Onboards Big ERISA Suit. Leaves Others Behind. - Health and Welfare Plans: DOL, IRS, and HHS issue interim final rules under certain provisions of the No Surprises Act, affecting how group health plans and health insurance issuers cover, in certain circumstances, emergency services, non-emergency services from nonparticipating providers at participating facilities, and air ambulance services from nonparticipating providers of air ambulance services. 86 Fed. Reg. 36,872 (July 13, 2021). See HHS News Release, CMS Fact Sheet, and DOL Model Notice; see also Agencies Begin Providing Rules for No Surprises Act Implementation.
- Nonqualified Deferred Compensation: IRS updates its Nonqualified Deferred Compensation Audit Techniques Guide, replacing the 2015 previous version and expanding the rules surrounding the review of deferred compensation arrangements, and emphasizing Section 409A compliance. IRS Publication 5528 “Nonqualified Deferred Compensation Audit Technique Guide.”
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