News & Analysis as of

Employer Healthcare Costs

Massachusetts Employers Face $200 Million Increase in Health Care Costs under MassHealth Amendments

On August 1, Massachusetts Governor Charlie Baker signed into law H. 3822, “An Act Further Regulating Employer Contributions to Health Care” (the “Act”). The purpose of the Act is to shore up the finances of the...more

Popularity and Pitfalls of Wellness Plans for Employers

by Miles & Stockbridge P.C. on

Recently, wellness programs have gained popularity in the workplace. Approximately one half of all employers offer some kind of wellness program. This is due, in part, to the notion that healthy employees are more productive...more

'Right-Sizing' Full-Time Employees to Reduce ACA Obligations May Lead to ERISA Class Action Exposure

by McDermott Will & Emery on

Compliance with the Affordable Care Act (ACA) has resulted in increased health benefit costs for many employers. A recent court decision demonstrates that while programs to reduce the number of full-time employees may lower...more

Employment Law Navigator – Week in Review: February 2016 #2

by Zelle LLP on

We’ve written a lot about employee health data and the inherent risks of requesting and maintaining this sensitive information. Last week, Forbes published a post arguing that employee health data could be the next business...more

Traveling for Medical Care — The Increasing Popularity of Medical Tourism

Medical tourism is the term used to describe the movement of patients across international borders in pursuit of medical care and treatment. While in the United States the term is usually associated with Americans leaving the...more

Consumerism Drives Employer & Retail Clinics' Telemedicine Adoption in 2016

by Foley & Lardner LLP on

In response to consumer demands for more personalized health care at a lower cost, employer onsite health clinics and retail clinics will continue to be on the rise in 2016, and telemedicine will be crucial to those clinics...more

Employee Wellness Technology: Cool and Risky

by Zelle LLP on

It should come as no surprise that one of us here at the Navigator has an Apple Watch. (Hint: It’s Kate.) Although everything about the watch pleases its owner, she is a particular fan of the Activity App that tracks calorie...more

Navigating Legal Issues in Connection with Employer Sponsored On-Site Health Clinics

by McDermott Will & Emery on

Employers are increasingly concerned with the high cost of health care and executives in the C-Suite are beginning to take notice. The Affordable Care Act (‘‘ACA’’) required employers who sponsor group health plans to adopt a...more

Employee Benefits Developments - March 2015

by Hodgson Russ LLP on

The Internal Revenue Service recently issued Notice 2015-16, intending to initiate and inform the process of developing regulatory guidance regarding the excise tax on high-cost employer-sponsored health coverage. The...more

Supreme Court Rejects Sixth Circuit’s Yard-Man Inferences in M&G Polymers USA, LLC v. Tackett

by McDermott Will & Emery on

In M&G Polymers USA, LLC v. Tackett, 135 S. Ct. 935 (2015), the Supreme Court of the United States addressed the interpretation of collective bargaining agreements (CBAs) that include post-retirement welfare benefits, such as...more

The ERISA Litigation Newsletter - February 2015

by Proskauer Rose LLP on

The Supreme Court cast a ray of sunlight for employers by rejecting the use of a problematic inference in adjudicating claims for retiree benefits brought pursuant to collective bargaining agreements. For many years, the...more

Supreme Court Eases the Way for Eliminating or Modifying Retiree Benefits

As a result of a recent Supreme Court decision, employers gained substantial ground in the ongoing battle over whether retiree health and other welfare benefits can be unilaterally modified or terminated. ...more

Supreme Court: Ordinary Contract Principles Do Not Allow Inference of Vesting Rights Absent Clear and Express Language

by Hinshaw & Culbertson LLP on

In 2000, M&G Polymers purchased the Point Pleasant Polyester Plant in Apple Grove, WV. At that time, M&G entered into a collective-bargaining agreement and a related Pension, Insurance, and Service Award Agreement (P & I...more

Supreme Court Rejects Yard-Man Inference of Lifetime Vesting of Retiree Health Benefits

The Supreme Court’s recent unanimous decision in M&G Polymers USA, LLC v. Tackett, No. 13-1010, 2015 WL 303218 (S. Ct. January 26, 2015) confirms that ordinary principles of contract law should be observed when interpreting...more

Supreme Court Strikes Down Presumption of Lifetime Retiree Medical Benefits

by Robinson & Cole LLP on

The New Year holiday is barely over and 2015 has delivered its first significant development affecting manufacturers and their labor unions. On January 26, 2015, in M&G Polymers U.S.A. v. Tackett, a unanimous United States...more

Unlike Diamonds, You Cannot Presume Retiree Medical Benefits Are Forever

by Foley & Lardner LLP on

Last week, the United States Supreme Court issued a decision that gives unionized employers in Michigan, Ohio, Tennessee, and Kentucky greater ability to modify medical benefits they provide to retirees pursuant to current...more

Supreme Court Reverses the Sixth Circuit’s Yard-Man Presumption

by Franczek Radelet P.C. on

For the past quarter century, because of conflicting legal authority, employers who offer health care to their retirees, particularly in a unionized setting, have struggled to determine whether they can alter those benefits....more

Supreme Court Addresses an Employer’s Right To Amend Retiree Health Coverage

by Ballard Spahr LLP on

In M&G Polymers v. Tackett, the U.S. Supreme Court ruled that ordinary contract principles govern whether a collective bargaining agreement vests retirees in health coverage (and the contributions they are required to pay for...more

Supreme Court Rejects Sixth Circuit's Approach to Retiree Medical Benefits

by Morgan Lewis on

Ordinary contract principles govern disputes about collectively bargained retiree medical benefits. A Morgan Lewis team secured a major victory for employers when the U.S. Supreme Court, in M&G Polymers USA, LLC v....more

Supreme Court Dispenses With the Yard-Man Inferences

by Proskauer Rose LLP on

In a decision watched closely by both employers and unions, a unanimous Supreme Court has resolved a thirty-plus year split among the circuit courts on the standards governing claims for retiree health-care benefits arising...more

Ding-Dong, Yard-Man Is Dead! Supreme Court Decision in Tackett a Huge Win for Employers in the Retiree Healthcare Arena

by BakerHostetler on

On Monday, a unanimous United States Supreme Court issued its decision in M & G Polymers USA, LLC v. Tackett, Supreme Court Case No. 13-101, vacating and remanding the Sixth Circuit’s holding that a group of retirees was...more

Supreme Court Rejects Analysis of Duration of Retiree Benefits As Contrary to Contract Law

On January 26, 2015, the Supreme Court of the United States resolved a long-standing dispute between the Sixth Circuit Court of Appeals and the remainder of the federal judiciary in a case concerning the extent to which...more

U.S. Supreme Court Rejects the Yard-Man Inference Vesting Lifetime Benefits for Union Retirees

by Littler on

In M&G Polymers USA, LLC v. Tackett, the U.S. Supreme Court overturned three decades of precedent by the U.S. Court of Appeals for the Sixth Circuit, unanimously ruling that, when no specific provision in a...more

Supreme Court Rejects Yard-Man: Ordinary Contract Principles Apply When Interpreting Retiree Medical Promises

by McGuireWoods LLP on

The Supreme Court has unanimously vacated a Sixth Circuit ruling that a collective bargaining agreement (CBA) vested retirees with lifetime medical benefits. M&G Polymers USA, LLC v. Tackett, No. 13-1010, 2015 U.S. LEXIS 759...more

U.S. Supreme Court Case Could Alter Retiree Health Benefit Landscape

by Miller Canfield on

The U.S. Supreme Court has agreed to review a 2013 Sixth Circuit decision that could alter the way collective bargaining agreement provisions covering retiree health benefits are interpreted. In Taketts v. M&G Polymers, the...more

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