As they do every year, the Internal Revenue Service released the dollar limits that apply to qualified retirement plans. There are three separate charts below that list the limits for 2010. The three charts are separated to identify the limits for: (1) defined contribution plans, (2) defined benefit plans, and (3) both defined contribution and defined…

"Summary Prospectus" Now May Be Used

Under ERISA Section 404(c) in Lieu of Statutory Prospectus 

On September 8, 2009, the U.S. Department of Labor (the “DOL”) issued Field Assistance Bulletin 2009-03. This guidance states that a fiduciary may continue to satisfy ERISA Section 404(c)’s requirements by providing a mutual fund’s “summary prospectus” rather than …

In addition to the COBRA subsidy, the American Recovery and Reinvestment Act of 2009 (“ARRA”), enacted on February 17, 2009, made significant changes to HIPAA privacy and security obligations. Those changes affect covered entities, including group health plans, and also affect business associates.  Although most of the HIPAA changes are effective February 17, 2010, one change (regarding breach notifications) will become effective earlier.  A summary of the key provisions affecting group health plan covered entities and business associates is below.   

• Requirement to Notify Individuals of HIPAA Breaches. The law changes now require covered entities to notify eachindividual whose unsecured protected health information (“PHI”) has been breached. For a breach of PHI under the control of a business associate, the business associate is required to notify the covered entity. Notice of the breach has to be provided to the Secretary of the US Department of Health and Human Services (“HHS”) and in the case of a mass breach involving more than 500 individuals, to a prominent media outlet.  Unsecured PHI means PHI that is not secured through the use of a technology or methodology specified by the Secretary of the US Department of Health and Human Services. 
  The Secretary of HHS is required to issue guidance about acceptable technology within 60 days of February 17, 2009. The law contains a default description of acceptable technology in the event that HHS does not timely issue guidance. The ARRA directs the HHS to issue regulations within 180 days of February 17, 2009. Then, the new notification requirements will apply to breaches discovered on or after the date that is 30 days after the date the regulations are published.

• Additional Individual Rights. 

    – Accounting of Disclosures for Treatment, Payment and Health Care Operations.Under current law, individuals have the right to an accounting of disclosures of their PHI made in the previous six (6) years requiring covered entities to track the disclosures. There are certain exceptions to the accounting requirement such as disclosures that are made for treatment, payment, or health care operations. Now, a covered entity that uses or maintains an “electronic health record” with respect to PHI must account for disclosures for treatment, payment, and heath care operations. This accounting is limited to disclosures made in the previous three (3) years. HHS is required to promulgate regulations implementing this new requirement. 

There are two general effective dates: (1) with respect to electronic health records acquired by a covered entity on January 1, 2009, the effective date is January 1, 2014 and (2) with respect to electronic records acquired by a covered entity after January 1, 2009, the effective date is January 1, 2011 or, if later, the date the electronic record is acquired. 

–          Access to PHI in Electronic Form.  If a covered entity uses or maintains an electronic health record for PHI, the new law gives individuals the right to obtain a copy of the PHI in electronic format. The individual can also direct the covered entity to transmit an electronic copy directly to an entity or person designated by the individual. 
This requirement is effective as of February 17, 2010.   

–          Right to Restrict Disclosures for Payment & Health Care Operations. Under current law, individuals have the right to request that a covered entity not disclose their PHI for purposes of routine treatment, payment, or health care operations, although the covered entity is not required to agree to the restriction. Now, the covered entity must agree to the restriction for purposes of payment and health care operations (but not for purposes of treatment)  if the PHI pertains solely to a health care item or service for which the health care provider involved has been paid out of pocket in full. This requirement is effective as of February 17, 2010.

Continue Reading HIPAA Changes Affecting Group Health Plans And Business Associates Made By The American Recovery And Reinvestment Act Of 2009

Today, the U.S. Department of Labor (“DOL”) issued model notices reflecting the recently enacted COBRA subsidy requirements and also issued updated FAQs on how the COBRA subsidy provisions are to work. View the model notices and FAQs. A summary of the different model notices (taken from the DOL’s descriptions) is below.

General Notice (Full version)…

Although group health plan sponsors are busy focusing on the COBRA subsidy enacted this past February, there are a flurry of laws impacting group health plans that have compliance dates ranging from April 2009 to February 2010. One of the laws, “The Children’s Health Insurance Program Reauthorization Act of 2009”, also enacted in February …

Today, David Sawyer of Tucker Arensberg, P.C. will be leading a call-in seminar for the Pennsylvania Bar Institute (PBI) regarding the recent COBRA changes. Register for the live seminar (which is from 12:30-1:30).

You also may register to listen to the seminar through the internet after its live broadcast by following the same link. Written materials…

We are sending this Employee Benefits Law Alert to update an alert we distributed on February 18, 2009. Government representatives have explained that although the Act states that insurance companies providing insurance for group health plans will be entitled to reimbursement of the COBRA subsidy, the employer (and not the insurance company) generally will be entitled …

This article has been revised to reflect recent guidance. It is important that you read the revised article at the following link: 
www.medlawblog.com/uploads/file/Revised Cobra Alert 2_26_09 _2_.pdf

Yesterday, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009 (the “Act”). Although a substantial portion of the Act is dedicated to …