Hacked Hospital Network Includes Outstate Missouri Hospitals

Laura Gerdes Long

By Laura Gerdes Long



4.5M Records Stolen, HIPAA violation

In June 2014, hackers in China used high-end, sophisticated malware to launch criminal cyber-attacks to access patient information from a national hospital system. Community Health Systems, Inc. (“CHS”), operates 206 hospitals across the U.S. in 29 states, including four located in Missouri (Kennett, Kirksville, Moberly, and Poplar Bluff). The breached data is considered protected health information under the Health Insurance Portability and Accountability Act (“HIPAA”).

In a filing with the U.S. Securities and Exchange Commission, CHS said the attacker was an “Advanced Persistent Threat” group which bypassed CHS’ security measures, successfully copying and transferring certain data outside CHS. Although CHS has confirmed that this data did not include patient credit card, medical, or clinical information, the breach does include patient names, addresses, birth dates, telephone numbers and Social Security numbers. CHS has been working closely with federal law enforcement authorities in connection with their investigation and potential prosecution of those determined to be responsible for this attack.

Under various state and federal laws, CHS is obligated to notify affected patients. The Department of Health and Human Services provides a web page describing the breach notification requirements of covered entities to effected individuals, the Secretary of Health and Human Services, and, in certain circumstances, to the media. Continue reading »

Inherited IRAs – Once Protected – Now Possibly Fair Game for Creditors

A. Thomas DeWoskin

By A. Thomas DeWoskin



You should read this article if  –

  1. You expect to transfer funds to your descendants through an individual retirement account (IRA); or
  2. You have inherited an IRA from a relative.

The U.S. Supreme Court has ruled in Clark v. Rameker that the money in an inherited IRA does not qualify for the protection from creditors as provided in the Federal Bankruptcy Code.[1]

The Court concluded that funds in an IRA which was inherited from someone else are not really retirement funds.  It gave three reasons for this conclusion.  The holder of an inherited IRA:

  1. Can never invest additional money into the account.
  2. Is required to withdraw money from the account, no matter how far away retirement may be.
  3. May withdraw the entire balance of the account at any time – and use it for any purpose – without penalty. Continue reading »

Inherited IRAs Not Protected in Bankruptcy

Misty A. Watson

By Misty A. Watson



Co-authored by Misty Watson and Samantha Maerz

If you directly inherited an IRA and are facing bankruptcy, these funds are no longer protected from creditors.

In Clark v. Rameker (In re Clark), No. 13-299, the U.S. Supreme Court unanimously ruled that inherited IRAs do not qualify under the “retirement funds” bankruptcy exemption. As a result, non-spouses inheriting an IRA may no longer protect the funds from creditors after filing bankruptcy and spouses have more incentive to “roll over” inherited IRA funds.

Before the Supreme Court decided Clark, there was a split between the 5th and 7th Circuit Courts of Appeals regarding exactly what the “retirement funds” bankruptcy exemption covered. In Chilton v. Moser, the 5th Circuit previously held that inherited IRAs were exempt from the bankruptcy estate because the “retirement funds” exemption never stated that the retirement funds had to be the debtor’s. In Clark v. Rameker, the 7th Circuit disagreed and held that inherited IRAs were not exempt because they were an “opportunity for current consumption, not a fund of retirement savings.” The disagreement stemmed from the interpretation of what “retirement funds” included. Continue reading »

My Health Care Wishes: New App

Misty A. Watson

By Misty A. Watson



When you need access to your health care power of attorney and living will, it is often stored in your safe deposit box or safe at home. Personally, I keep my power of attorney on a USB drive on my key chain. This has come in quite handy a few times.

Recently, an app was released called “My Health Care Wishes” at www.myhealthcarewishes.org. The Lite version, called the Personal Advance Directive Manager, allows individuals the ability to store and share their advance care directive plus one additional document with health care providers. Personal & Family Advance Directive Manager is a more robust pro version available for a small fee. It allows “unlimited storage of people profiles and documents.” Continue reading »

Digital Millennium Copyright Act Takedown Procedure: An Overview

J. Clifton Smith

By J. Clifton Smith



If you’ve ever poked around on the terms and conditions pages of YouTube, Facebook, Twitter or any other website that hosts user-generated content, you may have seen the Digital Millennium Copyright Act (DMCA) mentioned somewhere among the sea of fine print. You may also have seen a notice similar to the following after running a Google search:

dmca_img

DMCA is the federal statute that sets the ground rules for companies who host video, images, sounds, text or other files uploaded by the company’s customers. One of the most well-known and impactful portions of DMCA is the Online Copyright Infringement Liability Limitation Act (OCILLA), enacted as Title II of DMCA. By following a set of rules and procedures specified in the statute, web hosts, social media sites and file sharing services can protect themselves from liability under the Copyright Act for infringing materials uploaded by users.

If you run an online business, it is essential for you to understand the DMCA takedown process and what you need to do to comply with it. Even if your company doesn’t generate revenue online, you may need to become familiar with this process if you discover an unauthorized copy of your intellectual property somewhere on the web, or if your company’s website is targeted with a takedown notice.

Before looking at the takedown procedure itself, it is important to understand that although DMCA gives copyright holders a method to effect the removal of infringing content, the statute actually limits plaintiffs’ ability to file copyright infringement lawsuits. Continue reading »

Unemployment Insurance in Missouri: Should Employers Respond to Claim Notices?

Ruth Binger

By Ruth Binger



New regulations require Missouri employers to respond timely to information requests regarding unemployment insurance compensation. The federal Trade Adjustment Assistance Extension Act (“TAAEA” or the “Act”) of 2011 requires, among other things, that states increase employers’ duties regarding unemployment compensation claims. Specifically, the Act provides that states must require employers to respond timely and adequately to Claim Notices, information requests from state agencies relating to unemployment benefit compensation claims. It also requires states to charge the unemployment accounts of employers that repeatedly fail to respond to Claim Notices for unemployment benefits paid to ineligible former employees.

In Missouri, an employee that satisfies all the unemployment insurance benefit eligibility requirements may still be disqualified from receiving benefits for voluntarily quitting without good cause or for being discharged for work misconduct. Once a terminated employee files a claim for unemployment benefits, the Missouri Division of Employment Security (“DES”) mails the former employer a Claim Notice, which requires a response within 10 days. The Claim Notice permits the employer to protest an unemployment benefits claim because the former employee quit voluntarily or was discharged for misconduct. If the claim is not in dispute, the employer must still respond to acknowledge the claim.

Some employers routinely fail to respond to Claim Notices. They may systematically choose not to respond to Claim Notices to avoid becoming involved in a former employee’s benefits appeal. Continue reading »

IRS Grants Extension to Elect Portability Under Certain Circumstances

Misty A. Watson

By Misty A. Watson



The IRS has released Rev. Proc. 2014-18 to provide taxpayers the opportunity to obtain an extension of time to make a portability election under certain circumstances.

Portability allows a surviving spouse to receive the unused estate tax exemption of the predeceased spouse for gift and estate tax purposes. The estate tax exemption for 2014 is $5,340,000.

Under the new revenue procedure, an extension to file for this election will be granted under the following conditions:

(1) The taxpayer is the executor of the estate of a decedent who: Continue reading »

Mizzou Story Highlights Tension Between Doctor-Patient Privilege and Protecting the Patient

Laura Gerdes Long

By Laura Gerdes Long



A story concerning the death of a female athlete by suicide, her alleged rape, and the role played by the university she attended in the tragic facts has placed the issue of patient confidentiality squarely in the headlines.  The story highlights the care that must be taken to protect a patient’s ability to speak candidly and honestly to his or her medical provider without fear that such information will be divulged to anyone else without the patient’s permission.

The female student athlete had committed suicide in 2011, approximately 16 months after her alleged rape in 2010 by another student athlete at the school.  According to an email posted to Mizzou’s website on January 24, 2014, an ESPN producer of “Outside the Lines” wanted to know if University of Missouri officials planned to investigate or notify law enforcement about the alleged rape.  Just hours before publishing the story, the ESPN producer asked university officials: Continue reading »

Missouri Changes Its No-Oral-Credit Agreement Disclaimer Language Requirements for Lenders

David A. Zobel

By David A. Zobel



Missouri has once again amended its credit agreement statute of frauds to limit the ability of borrowers and guarantors to assert claims against lenders and the parties’ written credit agreement based upon oral promises or commitments.  Specifically, Senate Bill 100, effective late 2013, extends Missouri’s prohibitions to reach not only oral, but now also unexecuted agreements or commitments to loan money, extend credit, or to forebear from enforcing repayment of a debt if the parties’ credit agreement contains certain disclaimer language as provided in the statute.

Extending the prohibition specifically to unexecuted agreements between the parties became necessary after Mo. Rev. Stat. 432.047 was limited by the Missouri Court of Appeals in its Bailey v. Hawthorne Bank decision.  In that case the Court of Appeals broadly construed several different bank documents, including a bank loan summary which was never delivered to the borrower, to find a “credit agreement” as that term is used in the statute. Continue reading »

Estate Planning for Second Marriages

Misty A. Watson

By Misty A. Watson



Prior to saying “I do,” those getting married for a second time have many more estate plan considerations to take into account than a first-time marriage.

Children from the previous marriage and spouses often have different interests and expectations about inheritance. If a large difference in age or health status exists between the new spouses, further complications can arise.

Without some type of waiver of spousal rights, a surviving spouse may have a right to elect against the estate plan that is put in place. In Missouri, this means the surviving spouse may receive one-third (1/3) of the estate, even if the will only provides for the children. Continue reading »