February 20, 2015 – Health plan providers may face the similar detailed fee disclosure requirements as retirement plan providers under the Department of Labor’s (DOL) 408(b)(2) regulations. ERISA Diagnostics Inc., a benefits consulting firm, called this prospect to the attention of its clients in a recent ERISA Alert after digging through the fine print of the Obama Administration’s FY 2016 budget proposals.
The firm also pointed to recent litigation that has trained the spotlight on fees charged by health plan administrators that have been deemed to violate their fiduciary duties to the plan.
Back in 2011, the DOL’s Employee Benefit Security Administration had declared its intention to propose regulations subjecting health plans to 408(b)(2) regulations. That plan apparently had lain dormant until very recently. EBSA, in supporting its budget request for more funds to bolster its regulatory initiatives in FY 2016, placed amending the 408(b)(2) regulations at the top its priority list, according to ERISA Diagnostics.
Click on the external link below to review the entire article: