State/Local Updates - We anticipate a great deal of political news in the upcoming election year. However, the next Maryland session does not begin until January, 2011. The CHRA and Baltimore County Chamber of Commerce Fall Legislative Conference will be held at Hillendale Country Club on November the 16th. The most recent updates in compliance will be included; stay tuned for details.
Federal Updates
FMLA - Definition of Son/Daughter Clarified
The U.S. Department of Labor (DOL) on June 22, 2010, clarified the definition of “son and daughter” under the Family and Medical Leave Act (FMLA) to ensure that an employee who assumes the role of caring for a child receives parental rights to family leave regardless of the legal or biological relationship. The DOL interpretation applies to nontraditional families, including unmarried partners and families in the lesbian-gay-bisexual-transgender (LGBT) community.
When an employer has questions about whether an employee’s relationship to a child is covered by the FMLA, the employer may require an employee to provide reasonable documentation or statement of the family relationship. “A simple statement asserting that the requisite family relationship exists is all that is needed in situations such as in loco parentis where there is no legal or biological relationship.”
Mental Health Parity - Interim Rules Upheld
Interim final rules issued by the U.S. departments of Labor, Health and Human Services, and the Treasury to enforce the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) were upheld on June 21, 2010, by the U.S. District Court for the District of Columbia.
The plaintiff in the case, Coalition for Parity Inc., argued that the departments violated the Administrative Procedure Act’s notice and comment requirements by issuing interim final rules rather than a proposed rule.
The court disagreed, determining that the departments invoked the “good cause” exception to the notice and comment requirements properly. The court reached this conclusion based on congressional authorization for the issuance of interim final rules, the need for prompt regulatory guidance, the interim nature of the interim final rules and the lack of evidence of delay by the departments.
The MHPAEA was enacted Oct. 3, 2008, and generally took effect on a rolling plan year basis for insurance plan years beginning after Oct. 3, 2009. Because most group health insurance plan years start on Jan. 1 or July 1, the MHPAEA’s substantive provisions affect most group health plans as of Jan. 1, 2010, or July 1, 2010.
Healthcare Reform Grandfathered Plans - Interim Final Rules
Many were surprised to learn that two key areas in typical benefit plan operations remove grandfathering status in employer sponsored health care plans.
Changing insurance carriers will remove grandfathering status. Given many plans experience with healthcare premium increases, most do not feel it practical to remain with the same insurance carrier indefinitely. Further as provider networks continue to change, the needs of a plan sponsor may be to utilize the services of another carrier. However, doing so removes grandfathered status.
Another challenge to maintain grandfathered status is the inability to significantly alter co payments. Increases of no more then $5 or a percentage equal to medical inflation plus 15% will also revoke a plan's grandfathered status.
For assistance
in working directly with your elected officials, please contact
Greta Engle, Director Government Affairs
Gengle@kaig.com
(410) 891-2629 Direct Line
To learn
more about your own district and determine how your elected officials
have voted on key issues: http://www.chamberactionnetwork.com/blog
If you
are a SHRM member and would like to work directly with them to set appointments
with elected officials in Washington, or to obtain additional information
on SHRM position statements
Recardo Gibson, Member Advocacy Specialist
Recardo.gibson@shrm.org
(800) 283-SHRM
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