Compliance Bulletin | August 2024

Welcome to the August 2024 edition of the Baldwin Bulletin, a compliance newsletter by the Baldwin Regulatory Compliance Collaborative (BRCC).

The Baldwin Bulletin serves as a monthly guide to important regulatory developments, legal news, and employee benefits-related industry happenings designed to keep you abreast of the latest developments.

This month’s issue focuses on important upcoming compliance deadlines and includes our timeline of upcoming compliance requirements, in addition to providing information regarding certain hot-button compliance issues significantly impacting employers.

Upcoming Compliance Deadlines. For information regarding upcoming compliance deadlines for employer-sponsored group health plans, read more here.

2024 HIPAA Privacy and Security Rule Training Calendar. This year’s BRCC HIPAA training calendar is available here.

2024 BRCC Educational Webinar Calendar. The BRCC’s monthly educational webinar series calendar for 2024 is available here.

U.S. Supreme Court Overturns the Chevron Doctrine, Impacting Future Health and Welfare Mandates. On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce (consolidated cases). The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc. which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference).  Read more here.

U.S. Supreme Court to Review Tennessee’s State Ban on Gender-Related Medical Care for Minors. The U.S. Supreme Court announced on June 24, 2024, that it would take up a case challenging a Tennessee law that bans gender-affirming care for minors.  The Court will hear arguments when they are back in session in the fall with a decision to be released early next summer. Read more here.

Using HSAs, Health FSAs and HRAs for Over-the-Counter Items. Health savings accounts (“HSAs”), health flexible spending accounts (“FSAs”) and health reimbursement arrangements (“HRAs”) may provide tax-free reimbursements of certain over the counter (“OTC”) items. OTC items are generally available to consumers without a prescription.

To be reimbursable, an OTC item must be for “medical care,” as defined under Internal Revenue Code §213(d). Medical care expenses are amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting a structure or function of the body. Read more here.

Navigating Benefits Compliance During Employee Leaves of Absence. Employees may find themselves requiring leaves of absence due to medical conditions, familial obligations, or personal situations. During these periods, managing employee benefits to ensure compliance with federal (and state) laws is a responsibility that employers must carefully navigate. Key considerations aid employers in facilitating a legally compliant and smooth process. Read more here.

Federal District Court in Mississippi Issues National Injunction for Certain §1557 Nondiscrimination Provisions. In April 2024, the Department of Health and Human Services (“HHS”) Office of Civil Rights (“OCR”) issued a final rule under §1557 of the Affordable Care Act (“ACA”) that expanded the scope of prior regulations by providing, among other things, that sex discrimination includes discrimination on the basis of sexual orientation and gender identity, as well as sex stereotypes, sex characteristics, and pregnancy or related conditions. The final rule became effective July 5, 2024, with varied applicability dates for certain provisions, but federal courts have blocked portions of the rule from going into effect, including a nationwide injunction issued by a federal district court judge in Mississippi. Read more here.

Air Ambulance Ruling Undermines No Surprises Act Protections. In 2021, Congress enacted the No Surprises Act (“NSA”) with the twin goals of protecting patients from “surprise” medical bills while at the same time ensuring fair reimbursement to out-of-network providers who render medical services. “Surprise” medical bills are those for emergency services furnished by an out-of-network provider or nonemergency services furnished by an out-of-network provider at an in-network facility. A recent ruling by the Federal Court of Appeals, 5^th Circuit affirmed a lower court’s undermining the NSA rules around how the out of network provider is paid for their services. Read more here.

Question of the Month. Our “Question of the Month” concerns whether a retired executive could continue to receive the Employer sponsored medical plan as an independent contractor. Read more here.