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Benefits & Executive Compensation News

SCOTUS Won’t Hear ERISA Suit Over Heart Transplant Denial Death

A bereaved mother failed to secure US Supreme Court review in a case asking what relief can be awarded under federal benefits law for her son, a 27-year-old flight attendant who died while seeking insurance coverage for a heart transplant, the court announced Monday.

IRS Defends Rejection of Care Organization’s Tax-Exempt Status

Memorial Hermann Accountable Care Organization Inc. doesn’t qualify for tax exemption as a social welfare group and the Fifth Circuit should uphold that determination because its activities benefited commercial insurers, the IRS said in an appellate brief.

Fight Brewing Over Health Benefits Preemption Gets House Hearing

The growing tension between state law and federal preemption over regulating drug benefits will be high on lawmakers’ agenda at an upcoming House hearing on strengthening the Employee Retirement Income Security Act as the law turns 50.

Pharmacy Middlemen Need Robust Oversight, States Tell GAO

State officials overseeing companies that manage prescription drug benefits say regulatory flexibility is essential to prevent industry practices that can fuel high patient costs, a federal watchdog review of five states found.

Blue Cross Illinois Appeals Loss in Transgender Coverage Suit

A “novel” decision requiring Blue Cross Blue Shield of Illinois to reprocess denied claims for gender-affirming care contradicts health plan terms and should be reversed, the company said in a brief filed with the Ninth Circuit.

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Stellantis’ $39 Million CEO Pay Draws Investor Ire Amid Job Cuts

<-bsp-bb-link state="{"bbHref":"bbg://securities/STLAM%20IM%20Equity/ANR","_id":"0000018e-e63b-d583-afbf-e6ff547d0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Stellantis NV Chief Executive Officer <-bsp-person state="{"_id":"0000018e-e63b-d583-afbf-e6ff547d0001","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Carlos Tavares’ jump in 2023 remuneration is getting pushback as the Jeep maker pursues deep job cuts and tough savings goals in the EV transition.

Bidens Paid 23.7% Effective Federal Rate in Tax-Day Disclosure

President Joe Biden and first lady Jill Biden paid $146,629 in federal income taxes on a combined $619,976 in adjusted gross income in 2023 — meaning the first family paid an effective federal income tax of 23.7% — according to tax filings released by the White House.

NY State Tax Receipts Beats Estimate by Over $2 Billion

New York state collected $106.4 billion in tax revenue in the fiscal year ending March 30, more than $2 billion higher than projected in the financial plan released by the state budget division in February, state comptroller <-bsp-person state="{"_id":"0000018e-e3b0-d583-afbf-e3fc7ea20000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Thomas DiNapoli said.

IRS Defends Rejection of Care Organization’s Tax-Exempt Status

Memorial Hermann Accountable Care Organization Inc. doesn’t qualify for tax exemption as a social welfare group and the Fifth Circuit should uphold that determination because its activities benefited commercial insurers, the IRS said in an appellate brief.

IN BRIEF

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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

Case: Retirement Benefits/Benefits Denial (W.D.N.C.)

The court granted EIDP Inc., Corteva Inc., the Pension and Retirement Plan, and the Benefit Plans Administrative Committee’s motion for judgment on the pleadings dismissing an employee’s ERISA action for wrongful denial of benefits, equitable relief, statutory damages, and attorneys’ fees. Gasper v. EIDP Inc., 2024 BL 115192, W.D.N.C., 3:23-CV-00512-FDW-SCR, 4/3/24

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

The court granted in part Ascension Long-Term Disability Plan and Ascension Health Alliance’s motion for summary judgment on a St. John’s Hospital employee’s ERISA action challenging the denial of long-term disability benefits. Wilkins v. Ascension Long-Term Disability Plan, 2024 BL 111428, E.D. Mo., 4:22-cv-00428-SEP, 3/31/24

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