ERISA class actions surge over health plans' tobacco surcharges

By Emily Cousins - Class action lawsuits alleging violations of the Employee Retirement Income Security Act of 1974 are on the rise nationally against companies allegedly charging a higher premium for policyholders who use tobacco. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Lawsuit Overview: Lawsuits filed in federal courts across multiple states, including Connecticut and Pennsylvania, target major retailers like Walmart and Target. They claim employers must provide alternatives, such as smoking-cessation programs, to justify surcharges on employees who use tobacco.

2. Legal Arguments and Compliance: Plaintiffs assert that imposing fees for tobacco use is typically illegal under ERISA, which prohibits health status discrimination. A recent case against XPO Inc. argues that a $100 monthly surcharge violates anti-discrimination provisions by not offering alternatives for the entire plan year.

3. Regulatory Actions and Precedents: The U.S. Department of Labor has taken action against tobacco surcharges, recently winning a ruling against Flying Food Group LLC for overcharging employees. Law firms like Stueve Siegel Hanson and McClelland Law Firm have previously secured class certification in similar cases, advocating for accountability regarding unlawful fees.

Lack of health insurance coverage adds to disparities in advanced-stage diagnosis of multiple cancers, large study finds

By American Cancer Society - A new, large study led by American Cancer Society (ACS) researchers found that lack of health insurance coverage accounts for a significant proportion of racial and ethnic disparities in advanced-stage diagnosis of multiple cancers. The findings are published today in the Journal of the National Cancer Institute. Read Full Article…

HVBA Article Summary

1. Health Insurance Impact on Cancer Care: The study highlights that health insurance coverage is essential for improving access to high-quality healthcare throughout the cancer continuum, from prevention and early detection to treatment and survivorship. It suggests that enhancing health insurance coverage could help reduce racial and ethnic disparities in cancer diagnoses and survival rates.

2. Disparities in Cancer Diagnoses: Researchers analyzed data from 1.9 million cancer patients and found significant racial and ethnic disparities in advanced cancer stages at diagnosis. Health insurance was identified as a critical factor mediating these disparities, with notable differences observed between non-Hispanic Black, Hispanic, and non-Hispanic Asian/Pacific Islander patients compared to their White counterparts.

3. Call to Action for Policy Change: The American Cancer Society Cancer Action Network (ACS CAN) advocates for the protection and strengthening of the Affordable Care Act (ACA) to enhance health insurance access for marginalized communities. The study emphasizes the need for lawmakers to prioritize healthcare accessibility to ensure equitable cancer prevention, detection, treatment, and survivorship opportunities for all populations.

Raising the profile of voluntary benefits

By Katie Jacobs - Talent shortages, shifting employee expectations and a challenging economic climate are just some of the reasons why the voluntary benefits market has grown in recent years. Employers need to do more with less and engage with an increasingly diverse workforce demographic who want different things from a benefits package. Read Full Article…

HVBA Article Summary

1. Growing Importance of Voluntary Benefits: Employers increasingly recognize voluntary benefits as essential to achieving their people objectives, paralleling traditional health, risk, and retirement programs. Employees now expect these benefits to address their work-life needs, such as gym memberships and electric vehicle schemes, making them a vital part of the overall benefits strategy.

2. Tailored Solutions for Diverse Workforces: Voluntary benefits provide employers with the flexibility to offer tailored solutions that cater to a multi-generational workforce. By including a range of options—from financial resilience services like will-writing to non-traditional benefits such as fertility treatments—employers can fill gaps left by standard benefits and better engage employees with varying needs and priorities.

3. Effective Communication and Engagement Strategies: The success of voluntary benefits hinges on high employee engagement and awareness. Employers must prioritize clear, tailored communication strategies that resonate with different demographics, utilizing various channels to ensure accessibility. Regular feedback mechanisms and personalized messaging can enhance the perceived value of benefits and increase participation rates.

Medicare’s hidden information hurts people, policy

By Michael L. Millenson - Open enrollment season for Medicare, which began Oct. 15 and ends Dec. 7, triggers a deluge of information about various options. Since I’m a health care consultant and researcher as well as a Medicare beneficiary, I’ve looked critically at what we’re told and what we’re not. Read Full Article…

HVBA Article Summary

1. Lack of Transparency in Medicare Advantage Ratings: The star ratings for Medicare Advantage plans, intended to indicate quality and incentivize better care, lack geographical anchoring. A five-star plan could encompass multiple plans across various states, creating confusion about care quality for beneficiaries who assume local standards are applied.

2. Difficulties in Accessing ACO Information: Although accountable care organizations (ACOs) are required to publish quality information, it is not proactively shared with beneficiaries. This lack of accessible, clear information hinders patients from understanding the quality of care they receive, especially regarding the complex financial ties involving management companies and private equity.

3. Need for Enhanced Disclosure Regulations: The current system's opacity is detrimental to public health policy and patient care. There is a pressing need for comprehensive disclosure requirements for health insurers and ACOs, ensuring that consumers have access to relevant information about their plans and care quality. Legislation or regulation may be necessary to enforce this transparency and uphold the partnership ethos promoted by the CMS National Quality Strategy.

6 Tools to Build Competitive Benefits Packages for Open Enrollment

By Tina Wang - Businesses face a unique set of challenges during open enrollment season, and it’s driven by shifting worker expectations. You probably feel like it’s more difficult to build competitive benefits packages each year. Read Full Article…

HVBA Article Summary

1. Comprehensive Compensation Beyond Salary: Employees now evaluate job offers based on the total compensation package, which includes both traditional and non-traditional benefits. They seek growth opportunities, work-life balance, and cultural alignment, necessitating organizations to enhance their benefits offerings to meet these evolving expectations.

2. Personalized Benefits for Diverse Needs: The need for personalization in benefits is paramount, especially as the workforce spans multiple generations. Employers should tailor benefits to address the varying priorities of employees at different life stages, leveraging technology to deliver customized recommendations that resonate with their workforce.

3. Technological Integration in Benefits Administration: As open enrollment becomes a pivotal moment for employee engagement, organizations must utilize technology to streamline the process. Intuitive platforms can simplify benefits management, providing real-time insights and tailored suggestions, ensuring that employees make informed choices that align with their individual needs and preferences.

Walgreens lays off 250 support center employees as part of cost-saving strategy

By Heather Landi - Walgreens is conducting another round of layoffs as the drugstore giant looks to significantly cut costs and improve its financial performance. It's the third round of cuts in 2024. Read Full Article…

HVBA Article Summary

1. Job Cuts and Corporate Restructuring: Walgreens is eliminating 256 support center roles as part of its ongoing turnaround efforts, following previous layoffs that included 504 corporate jobs in May 2023 and additional cuts throughout the year. The company aims to streamline operations to better respond to market changes and improve financial performance.

2. Financial Struggles and Store Closures: The retail drugstore chain reported a significant loss of $3 billion in the fourth quarter and plans to close 1,200 stores over the next three years, with 500 closures expected in fiscal 2025. These actions are intended to enhance cash flow and align with the company's strategy to stabilize its core retail pharmacy business amid a challenging market.

3. Cost-Saving Initiatives: Walgreens CEO Tim Wentworth announced that the company has made substantial progress in its cost-saving strategy, exceeding fiscal 2024 targets by cutting over $1 billion in costs, reducing capital expenditures by more than $700 million, and achieving over $600 million in benefits from working capital initiatives. The focus remains on refining retail strategy and improving the company's financial health.

Biden's new student loan forgiveness plan: A 3rd attempt at debt cancellation for 8M

By Lynn Cavanaugh - Despite his two previous unsuccessful attempts to cancel student loans on a grand scale, President Joe Biden is moving ahead with a new plan to forgive student loans with a proposed new rule that would authorize forgiveness for eight million borrowers facing "hardship." Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. New Debt Discharge Criteria: The Education Department's new plan allows for the discharge of student debt if it determines there is an 80% likelihood that a borrower will default within two years, based on 17 financial factors, including income, debt, and assets.

2. Legal Challenges and Suspension: Following the Supreme Court's rejection of Biden's initial student loan forgiveness plan, the $475 billion Saving on a Valuable Education (SAVE) plan has faced legal hurdles, with recent federal court rulings in Missouri and Georgia causing delays in its implementation as challenges to its legality continue.

3. Expanded Hardship Considerations: The proposed regulations aim to provide debt relief to borrowers facing financial hardships, including unexpected medical expenses and natural disasters, with the Department of Education set to finalize the rules in 2025 after a public comment period.