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Ruling Gives Religion-based Hospitals Pension Exemption

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  • June 7, 2017
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Ruling Gives Religion-based Hospitals Pension Exemption

On June 5, the U.S. Supreme Court ruled in the Advocate Health Care Network v. Stapleton case that religious-affiliated hospitals are exempt from federal pension requirements. That means faith-based hospitals can avoid pension regulations — such as paying premiums to the Pension Benefit Guaranty Corporation — under the Employee Retirement Income Security Act’s (ERISA) “church plan” exemption.
Health organizations affiliated with churches (i.e., Dignity Health) operate significant numbers of hospitals in the United States. And, this is good news for those nonprofit hospitals that struggle financially due to the increase in patients on government programs, which reimburse at lower rates than private payers.
Source: Supreme Court upholds ERISA exemption for faith-based hospitals

Michelle Dick
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Michelle A. Dick, BS, is a freelance content specialist, providing writing, editorial expertise, and graphic imagery to clients. Prior to becoming a free agent, she was an executive editor for AAPC, editor-in-chief at Eli Research, and editor at Element K Journals. After earning a Bachelor of Science from the State University of New York at Buffalo State, Dick entered the publishing industry as a graphic artist, ad coordinator, and web designer for White Directory Publishers, Inc.

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