Health Plan Assessed Double Damages for MSP Violation

Filed under: Medicare, Health Plans

A federal appeals court has held that the Medicare Secondary Payer (“MSP”) Act authorizes a medical provider to sue an employer health plan for double damages when the plan fails to comply with the MSP Act, thereby forcing the provider to accept the lower level of reimbursement available under Medicare. This Sixth Circuit decision, in Bio-Medical Applications of Tennessee, Inc. v. Central States Southeast and Southwest Areas Health and Welfare Fund, definitely raises the stakes for health plans that fail to comply with the MSP rules.

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CMS Updates Medicare Part D Creditable Coverage Notices

Filed under: Medicare, Health Care Reform, Health Plans

On April 1, 2011, the Centers for Medicare and Medicaid Services ("CMS") issued revised Medicare Part D creditable and non-creditable coverage notices to reflect an amendment made to the Social Security Act by the Affordable Care Act ("ACA"). The amendment accelerated the Medicare Part D annual enrollment period — from November 15 through December 31, to October 15 through December 7. This change is effective for 2012 Part D enrollments, occurring in the fall of 2011.

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Retirement Plan Limits Unchanged for 2010

Filed under: Medicare, Dollar Limits, Qualified Retirement Plans

Traditionally, the IRS has announced inflation-adjusted retirement plan limits in October, based on the inflation rate during the prior twelve-month period. This time, however, the IRS announcement was that these limits would not be decreased, despite an actual rate of deflation during the prior twelve months. Accordingly, virtually all of the dollar amounts under which retirement plans have been administered during 2009 will remain the same for 2010.

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Mandatory Medicare Secondary Payer Reporting Program Begins in 2009

Filed under: Medicare, Health Plans

Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 adds a new mandatory reporting requirement for group health plans. The overall purpose of this program is to make sure that Medicare pays benefits secondary to any applicable private health care coverage. The Centers for Medicare and Medicaid Services (“CMS”) is responsible for this program, and has recently announced information about how the program will be implemented.

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Medicare Part D Notices Revised (Again)

Filed under: Medicare, Health Plans, Reporting and Disclosure

The Medicare Part D regulations issued by the Centers for Medicare and Medicaid Services (“CMS”) require group health plans providing prescription drug coverage to Part D-eligible individuals to disclose to participants whether the coverage is “creditable” — that is, at least as good as Medicare Part D coverage. Plans must send these notices to participants each fall, prior to the beginning of the initial enrollment period for Medicare Part D coverage.

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Court Upholds EEOC’s Right to Exempt Medicare Coordination from ADEA Claims

Filed under: Medicare, Discrimination, Health Plans

After protracted litigation, the Third U.S. Circuit Court of Appeals has finally upheld regulations issued by the Equal Employment Opportunity Commission (“EEOC”) allowing employers to reduce, change, or even eliminate retiree health coverage when retirees become eligible for Medicare. Unless this decision is reversed by the U.S. Supreme Court (which seems unlikely), employers who coordinate, terminate, or charge different premiums for retiree health coverage upon a retiree’s Medicare eligibility should be able to retain such practices without fear of violating the Age Discrimination in Employment Act (“ADEA”).

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Medicare Part D Notices Revised

Filed under: Medicare, Health Plans, Reporting and Disclosure

As we reported in our July 2005 issue of Benefits in Brief, the Medicare Part D regulations issued by the Centers for Medicare and Medicaid Services (“CMS”) require group health plans providing prescription drug coverage to Part D-eligible individuals to disclose to participants whether that coverage is “creditable” – that is, at least as good as Medicare Part D coverage. Most plans sent these notices to participants last fall, prior to the beginning of the initial enrollment period for Medicare Part D coverage.

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Plan Sponsors Must Disclose Creditable Coverage Status to CMS

Filed under: Medicare, Health Plans, Reporting and Disclosure

As we reported in our July 2005 issue of Benefits in Brief, regulations issued by the Centers for Medicare and Medicaid Services (“CMS”) require group health plans providing prescription drug coverage to Medicare Part D-eligible individuals to disclose to participants whether that coverage is “creditable.” Plan sponsors were required to send these notices by November 15, 2005. CMS has now released guidance regarding the plan sponsor’s obligation to disclose information regarding the plan’s creditable coverage status to CMS.

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Upcoming Events

Webinar: W-2 Reporting of Employer Health Coverage: The Clock is Ticking

Thursday, March 08, 2012

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Spencer Fane’s Employee Benefits Group has earned a national reputation developing innovative benefits solutions to meet client needs. From left to right: Melissa Hinkle, Rob Browning, Chadron Patton, Ken Mason, Larry Jenab, Julia Vander Weele and Greg Ash.

Benefits in Brief Volume 2011 Issue IV


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Benefits in Brief Volume 2011 Issue II


Benefits in Brief Volume 2011 Issue I