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Benefits & Executive Compensation News

PBMs Should Be Health Plan Fiduciaries, Employers Tell Congress

Pharmacy benefit managers should be required to act as fiduciaries acting in the interest of health-plan beneficiaries in providing benefits and paying plan expenses, a House subcommittee was told at a Tuesday hearing.

Mental Health Coverage Parity Remains Out of Reach, Survey Says

Out-of-network use of mental health providers for US patients was many times higher than use for medical and surgical treatment—nearly 20 times more for certain behavioral inpatient care—according to a new study that signals mental health benefits parity is still far from a reality.

Elon Musk’s Tesla Pay Vetted by Sidley, Ex-Kirkland Partner

Sidley Austin is advising the Tesla Inc. special committee recommending that shareholders approve a $56 billion pay package for the company’s top executive, Elon Musk.

Musk, X Get Discovery Paused in Twitter Severance Pay Lawsuit

Laid-off Twitter employees who say they’re owed severance benefits after Elon Musk‘s takeover of the company can’t seek discovery from Musk or X Corp. until a California federal court decides whether to dismiss the proposed class action.

Deutsche Bank Lands DOL Exemption to Manage Retirement Funds

Deutsche Bank AG and DWS Investment Management America Inc., the corporate parent overseeing its US-based qualified professional asset managers, received the Labor Department’s greenlight to keep managing retirement funds, according to a new notice filed by the agency.

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Discover Financial Profit Dives 68% as Compliance Costs Bite

Discover Financial Services, the lender that agreed to be acquired by Capital One Financial Corp. in the year’s biggest announced deal, posted a sharp drop in first-quarter profit as it worked to address compliance and risk-management deficiencies.

Mapping Tesla’s Road From Delaware to Texas, and Big Musk Payday

Elon Musk’s car company on Wednesday proposed to grant him the same $56 billion pay package that its shareholders approved six years ago — and that Delaware’s top business law judge <-bsp-bb-link state="{"bbDocId":"S83XOHT1UM0W","_id":"0000018e-ed8f-d583-afbf-efdf2adf0001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">shot down in January as excessive.

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Case: Health Care & Benefits/Long-Term Disability Benefits (W.D. Mo.)

The court denied AT&T Umbrella Benefit Plan No. 3 and Sedwick Claim Management Services Inc.'s motion to dismiss an employee’s ERISA action challenging the denial of long-term disability benefits and alleging breach of fiduciary duties. Dickson v. AT&T Umbrella Ben. Plan No. 3, 2024 BL 128122, W.D. Mo., 4:23-cv-00456-DGK, 4/15/24

Case: Health Care & Benefits/Benefits Denial (N.D. Cal.)

The court denied the University of San Francisco Welfare Benefit Plan’s motion for summary judgment on the applicable standard of review of an employee’s ERISA and Parity Act action challenging the denial of benefits for residential treatment as not medically necessary. K.G. v. Univ. of S.F. Welfare Ben. Plan, 2024 BL 12455, N.D. Cal., Case No. 23-cv-00299-JSC, 4/11/24

Case: Health Care & Benefits/Benefits Denial (C.D. Cal.)

The court granted an employee’s request to overturn the Director’s Guild of America’s denial of benefits, and entered judgment in the employee’s favor, in this ERISA action for denial of benefits and breach of fiduciary duty. Dan C. v. Anthem Blue Cross Life & Health Ins. Co., 2024 BL 120514, C.D. Cal., 2:22-cv-03647-FLA (AJRx), 4/9/24

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