Protecting Member’s Health Data

The sensitive nature of information shared with payers and providers makes health plan members prime targets for identify theft. While no legislation is currently moving through Congress, a number of senators are taking steps to learn more about recent breaches of healthcare data involving collection agencies and diagnostics firms.

While some employers are taking very costly measures to protect their business and their employees, there are a few steps employers can implement at little or no cost:

  • Encourage everyone to use strong passwords and change them often.
  • Consider adding an Identify Theft protection service to your benefits package. Lifelock and Identity Guard are two common options.
  • Offer educational sessions or webinars to build awareness to the cyber threats that exist today.

On-going education is critically important because the constant use of technology has made too many of us numb to the serious nature of cyber threats. As prevention measures have evolved over time, so have the ways hackers and cyber criminals go about attacking organizations and individuals.

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Association Plans Taking Shape

In January, the Employee Benefits Security Administration (EBSA) posted draft regulations that could allow trade groups to offer nationwide association health plans (AHP) for member employers. The regulations are in response to President Trump’s executive order intended to facilitate access to short-term health insurance plans and the use of HRAs by employers.

The regulations will allow a general business group to offer an AHP to all members, regardless of industry, as long as the employers are located in the group’s metropolitan area. In contrast to existing association-sponsored plans, business groups that want to sponsor an AHP can organize for the specific purpose of obtaining healthcare coverage and nothing more. The regulations would enable some general purpose AHPs, such as one offered by a chamber of commerce or other business group that has members in a bordering state, to offer coverage across state lines.

As of our publication date, comments are still being received by EBSA and officials are still working on more regulations. While the initial proposal would not alter existing statutory provisions governing multiple employer welfare arrangements (MEWAs), recent updates tell us that future proposals could involve DOL authority to exempt self-insured MEWA plans from state regulation.

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