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A.M. BEST'S MONTHLY INSURANCE MAGAZINE


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In the News
Regulatory Update

Retirement savings and risk corridor payments are a focus.
  • December 2018
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Retirement Savings:

The U.S. Labor Department released a new proposed rule that would allow small employers to pool together their workplace retirement plans, which industry representatives said could make it easier for Americans to save for retirement.

Under the proposed rule, small businesses could join open Multiple Employer Plans. Such pools would allow companies to offer 401(k) plans with participants combined from multiple unaffiliated employers, rather than from a single one.

The proposed rule is in response to an executive order signed by President Donald Trump earlier this year to change the regulation of workplace retirement plans.

Risk Corridor Payments:

A federal appeals court has declined to overturn an earlier ruling that said insurers can't recover $12 billion in unpaid risk corridor payments because the program did not constitute a contractual obligation between the government and participating carriers.

In a 9-2 vote, a panel of the U.S. Court of Appeals for the Federal Circuit rejected a request to bring the case before the entire appellate court.

The request for an en banc review (a review by the entire Federal Circuit bench) came from four insurers: Moda Health Plan, Land of Lincoln Mutual Health, Blue Cross and Blue Shield of North Carolina, and Maine Community Health Options.

It is expected the carriers will appeal to the U.S. Supreme Court.


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