House Dems Tell DOL Employers’ Health Plans Skirt ERISA

Law360 (October 8, 2020, 6:12 PM EDT) — Two Democratic House leaders are urging the U.S. Department of Labor to take a close look at whether employers are violating the Employee Retirement Income Security Act by offering workers shoddy health benefit plans that are subject to less regulation under the law.

House Committee on Education and Labor Chairman Bobby Scott, D-Va., along with Subcommittee on Health, Education, Labor and Pensions Chair Frederica Wilson, D-Fla., warned in their letter Wednesday that employers are increasingly using hospital insurance products meant to replace income during hospitalization or illness in place of traditional health coverage plans.

“Evidence strongly suggests that these arrangements may…

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