Tag Archives: health plans


Health care costs now the biggest recurring family expense; governments look to employers to help
(Posted on June 5, 2013 by )


Health care costsA new Milliman report indicates that the average health care cost for a family of four is $22,030. This compares with average annual mortgage payments of $12,732. Indeed, it is close to the average amount spent to send a child to a public college or university ($22,261).

On average, the employer currently pays about $12,886 of the cost of health care in the form of employer subsidy. The Affordable Care Act (“Obamacare”) does not change this reliance on employer subsidies as the main funding mechanism for health care. So, what measures are being taken to encourage employers to continue or expand health care subsidies? Read more

Plan Found to Be “Governmental” Even Though Originally Established by Private Entity
(Posted on May 20, 2013 by )


United States District Court, Eastern District of LouisianaERISA section 3(32), 29 U.S.C. § 1002(32), defines a governmental plan (exempt from Title I of ERISA) as:

a plan established or maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing.

Internal Revenue Code section 414(d) defines a governmental plan as:

a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing.

So what happens if a plan is established by a private entity, but later maintained by a government or one of its agencies or instrumentalities? The Eastern District of Louisiana considered this issue in Smith v. Regional Transit Authority (May 10, 2013).

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Governmental Health Plans Face New Fee for 2014-2016
(Posted on April 16, 2013 by )


One of the least noticed provisions of the The Patient Protection and Affordable Care Act (PPACA), sometimes referred to as Obamacare, is a transitional reinsurance fee applicable to 2014 through 2016. The Department of Human Services issued regulations implementing this provision on March 11, 2013. These regulations clarify that although governmental entities are exempt from tax and from most of ERISA, health plans that governmental employers maintain for their employees will be subject to the new fee.

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