Healthcare providers, payors, and other healthcare organizations should be aware of a recently announced, “first-of-its-kind” settlement between the Texas attorney general and a healthcare generative artificial intelligence (AI) company resolving allegations that the company made a series of false and misleading statements about the accuracy and safety of its AI products. The settlement highlights the potential for enforcement against companies that utilize AI in a healthcare setting under existing laws that are not specific to AI and the importance of exercising caution in developing claims about an AI product’s efficacy or performance.
IRS Releases Guidance on Matching Contributions for Student Loan Payments
Last month, the Internal Revenue Service (IRS) released long-awaited guidance on matching contributions for qualified student loan payments under § 401(k) of the Internal Revenue Code and other similar retirement plans. This guidance aims to help plan sponsors with setting up these programs for plan years beginning after December 31, 2024, until proposed regulations are issued.
Learn more and see other updates in this Weekly IRS Roundup.
HHS, Labor, and Treasury Finalize Mental Health Parity Rule
On September 9, 2024, the US Departments of Health and Human Services , Labor, and the Treasury finalized a rule related to the Mental Health Parity and Addiction Equity Act. This rule introduces significant updates to mental health and substance use disorder benefits, ensuring parity with medical and surgical benefits. Key changes include enhanced protections against restrictive treatment limitations, clarified definitions, and new data evaluation requirements. These updates, effective from January 2025, are crucial for hospitals, health systems, and managed care providers.
3 Expert Perspectives on Adopting Human-Centric AI and Navigating the Future of Work
How can organizations adopt a human-centric approach to artificial intelligence (AI) use in the workplace? In this SHRM article, Kathleen Pearson, McDermott’s chief human resources officer, discusses the Firm’s adoption of the emerging technology and how she’s brought cross-functional teams together to explore AI use cases.
Plan Sponsors, Insurers, and the Landmark Mental Health Parity Final Rule
The US Departments of the Treasury, Labor, and Health and Human Services recently issued much-anticipated final regulations under the Mental Health Parity and Addiction Equity Act (MHPAEA). The newly issued final regulations update the 2013 final regulations principally to reflect the changes to MHPAEA enacted by the Consolidated Appropriations Act, 2021, which requires plans and issuers to formally analyze and compare nonquantitative treatment limitations as they apply to both mental health and substance use disorder benefits and medical/surgical benefits.
The changes in the final regulations largely take effect in 2025, with the effective date for some provisions delayed until 2026. Although the final regulations may face litigation challenges, considering the recent decision in Loper Bright Enterprises v. Raimondo, health plan sponsors should plan to comply by the quickly approaching deadlines.
