ACA FAQs Phase 2 HIPAA Audits Lawsuit over Reduced Hours

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ACA FAQs Phase 2 HIPAA Audits Lawsuit over Reduced Hours
Calendar22 April 2016

The latest set of ACA implementation FAQs tackle a variety of coverage, cost-sharing, and disclosure issues and give new details on parity testing under the Mental Health Parity and Addiction Equity Act.

The HHS Office for Civil Rights has launched Phase 2 of its audit program aimed at ensuring compliance with HIPAA privacy, security, and breach notice rules. Covered entities and business associates should be alert for audit notices via email.

A group of employees can proceed with a lawsuit claiming their employer violated ERISA by reducing their work hours to avoid liability under the ACA, a federal court has ordered (Marin v. Dave & Buster's Inc.) This is the first lawsuit to consider whether workforce changes allegedly initiated to limit an employer's anticipated ACA costs unlawfully interfere with affected employees' eligibility for benefits under an ERISA plan. Although the court has yet to decide the ERISA claims, its refusal to dismiss the lawsuit shows that employers should carefully approach workforce changes that negatively affect employees' access to group health plans.

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