Employer's good faith belief that terminated employee committed disability fraud sufficient to deny COBRA coverage

Article Abstract:

A US district court in Illinois ruled in Kariotis v. Navistar International Transportation Corp. that an employer that terminated an employee based on a good faith belief that she engaged in gross misconduct did not need to provide her with notice of COBRA rights or family leave job restoration. Upon her termination for suspected disability fraud, the employee sued under COBRA, ERISA and the Family and Medical Leave Act. The court found that the employer's good faith belief, based on videotape evidence that she was not in fact disabled, was sufficient to absolve it of postemployment benefits obligations.

Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs), Special Disability Insurance, Cases, Retirement benefits, Disability insurance, Family leave, Insurance fraud

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Agencies issue interim rules on Mental Health Parity Act provisions

Article Abstract:

Extensive interim regulations were issued in Dec 1997 under the Mental Health Parity Act of 1996 which was passed to address disparities between mental health and medical and surgical group health plan coverages. The regulations ensure that the Act does not mandate mental health coverage but requires parity in dollar limits with medical and surgical coverage when it is provided. The regulations include rules regarding annual and lifetime limits, exemptions, and date of effect and sunset.

Psychiatric services, Mental health services, Health insurance

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