Maryland’s Fair Share Health Care Fund Act

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Feb14

Maryland’s Fair Share Health Care Fund Act

Linda Chan

February 14, 2007

Know More: Benefits 2.0, Benefits

The Maryland’s Fair Share Health Care Fund Act (Act) covered four employers. Two of these already met the “fair share” requirement. A third employer that primarily employed highly paid employees within Maryland was exempted, given the “Fair Share” Act’s purpose of reducing Maryland’s funding of health care benefits for low-income individuals. Resulting, the “Fair Share” Act affected only one employer.

In Retail Industry Leaders Association v. Fielder et al., Nos. 06-1840 and 06-1901 (4th Cir., January 17, 2007), the Retail Industry Leaders Association (RILA) sued in federal court to stop Maryland from enforcing the Act. RILA asked the court to declare that Employee Retirement Income Security Act (ERISA) preempted the Act, because the Act interfered with the uniform administration of nationwide employee benefit plans. The Fourth Circuit affirmed the federal court’s decision that the Act was preempted under ERISA.

The Fourth Circuit opinion demonstrates the difficulty of assessing ERISA preemption of “fair share” statutes.

related entries

401(k) Fiduciary Relief Nov 5, 2007
Contractor Insurance Oct 17, 2007
401(k) Reasonable Administrative Fee Oct 14, 2007
Social Security Mismatch Oct 6, 2007
Washington State on Unemployment Sep 29, 2007

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