Supreme Court Endorses Broad Government View Of ERISA ‘Church Plan’ Definition

On June 5, 2017, the Supreme Court released Advocate Health Care Network v. Stapleton, unanimously (with Justice Gorsuch not yet participating) accepting the federal government’s interpretation of the Employee Retirement Income Security Act’s (ERISA) definition of “church plan.” The Court rejected a challenge brought by employees covered by defined-benefit pension plans offered by entities that qualified as “church plans” under the government’s interpretation. Separately, on the same day, the Department of Justice filed a brief in Texas v. United States in support of the federal government’s motion for summary judgment. Six states filed the lawsuit claiming that the assessment of the Affordable Care Act’s section 9010 insurance provider fee against Medicaid managed care organizations, which then must be reimbursed by the states for the amount of the fee, is illegal and unconstitutional. The Advocate Health Care Case ERISA generally governs employee benefit plans, including pension and group health pans, and protects certain employee rights under those plans. From its enactment in 1974, ERISA has specifically exempted church plans from its requirements. Originally, “church plan” was defined to include plans established and maintained “by a church or by a convention or association of churches.” In 1980 the definition was broadened, in the federal government’s view, to include plans maintained by what the Court described as “principal purpose,” ch...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Following the ACA ERISA Source Type: blogs