Ruling Gives Religion-based Hospitals Pension Exemption

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 Dick

Executive Editor at AAPC
Michelle A. Dick has been executive editor for AAPC for over seven years. Prior to her work at AAPC, she was editor-in-chief at Eli Research and Element K Journals, and disk ad coordinator, web designer/developer, and graphic artist at White Directory Publishers, Inc. Dick has a Bachelor of Science in Graphic Design from the State University of New York - Buffalo State and is a member of the Flower City Professional Coders in Rochester, N.Y.
Michelle Dick
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About Has 167 Posts

Michelle A. Dick has been executive editor for AAPC for over seven years. Prior to her work at AAPC, she was editor-in-chief at Eli Research and Element K Journals, and disk ad coordinator, web designer/developer, and graphic artist at White Directory Publishers, Inc. Dick has a Bachelor of Science in Graphic Design from the State University of New York - Buffalo State and is a member of the Flower City Professional Coders in Rochester, N.Y.

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