An online, clickable version of this newsletter is available at: http://benefitslink.com/2007/2007_12_05_welfare.html =========================================================== BenefitsLink Health & Welfare Plans Newsletter (Plain Text Format) December 5, 2007 Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. =========================================================== TODAY'S SPONSOR: BeneCom Associates, LLC BeneCom Associates, LLC, for one-stop benefit communications (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2007_12_05_welfare (Click on the above address or copy and paste it into your web browser.) Since 1992, BeneCom has provided one-stop benefit communications for organizations large and small, nationwide. Staffed by people who know benefits, we write, design and produce effective media, including SPDs, enrollment materials, newsletters, benefit statements and more. So whether you're an employer, plan administrator or consultant in need of traditional or online capabilities, we're here to help. Call (860) 674-2626 today. ----------------------------------------------------------- (a) NEW GUIDANCE DOCUMENTS ----------------------------------------------------------- (None today.) ----------------------------------------------------------- (b) NEWS ----------------------------------------------------------- Arizona Might Provide Benefits to Domestic Partners http://www.azcentral.com/news/articles/1203benefits1203-ONL.html Excerpt: "Arizona is poised to join more than a dozen states that offer health and other benefits to domestic partners of state employees, g.ay or straight. The change would affect the state health plan, to which 65,000 active employees of state government and public universities, as well as 9,000 retirees, belong. In short, it would allow state employees with domestic partners to claim the same benefits as married couples, the biggest of which is coverage under the state health plan." (azcentral.com) ---------------------------------------------------------- Mailing Insurance Forms to Wrong Address Not ERISA Breach http://www.plansponsor.com/pi_type10/?RECORD_ID=39658 Excerpt: "A federal judge has cleared a Texas company of wrongdoing for sending life insurance policy conversion forms to a participant's former job site instead of his house, causing the participant to miss the conversion deadline." (PLANSPONSOR.com; free registration required) ----------------------------------------------------------- (c) SUMMARIES OF GUIDANCE; FILED COMMENTS ---------------------------------------------------------- Massachusetts Issues Filing Instructions on Fair Share Contribution and HIRD Form Requirements under the Massachusetts Health Care Reform Act http://www.mintz.com/newsletter/2007/EBEC_1108_Alert_DUA-FSC-HIRD/index.htm Excerpt: "Though modestly titled 'Filing Instructions,' the document, which is organized into 11 separate topics or headings, provides a useful compliance roadmap. This client advisory summarizes the key topics of this DUA document." (Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.) ----------------------------------------------------------- Overview: Final Guidance Established for Self-Insured Plans http://www.ncpers.org/News/FinalGuidanceForthcoming.asp Excerpt: "BNA publication Daily Report for Executives reports . . . that the IRS has issued Notice 2007-99, Modifying Notice 2007-7, Q&A to Incorporate Change Made by Pension Protection Act Pertaining to Distributions From Health, Accident Plans. Although BNA has text of the IRS Notice (available [from the target page]), the Notice will not be published in the Internal Revenue Bulletin until December 24, 2007. The Notice will allow for participants in self-insured plans to be considered eligible for the HELPS Retirees benefit." (National Conference on Public Employee Retirement Systems) ---------------------------------------------------------- Overview of New Legal Guidance on HELPS Implementation (PDF) http://www.ncpers.org/News/PageText/documents/PPA845memo.pdf 9 pages. Excerpt: "The law firm of Klausner & Kaufman, PA has provided its clients, including NCPERS, with a memorandum of guidance on HELPS implementation and changes to IRS Form 1040. [Regarding exclusion of health insurance premiums.] " (National Conference on Public Employee Retirement Systems) ----------------------------------------------------------- (d) TRENDS, SURVEYS, RESEARCH ---------------------------------------------------------- UAW Contracts May Have National Ripple Effect http://www.usatoday.com/money/autos/2007-12-04-uaw-contracts_N.htm Excerpt: "[L]abor experts say the four-year contracts with General Motors (GM), Ford Motor (F) and Chrysler are indeed transformational. And they could reverberate throughout the manufacturing sector and even into the public sector as companies and government bodies look for ways to alter their cost structures. The UAW agreed to some radical changes, including taking control of retiree health care and allowing lower wages for new workers." (USA TODAY) ---------------------------------------------------------- Study: Smoking Cessation Programs Could Save 5.6% of Costs ($9.7 Billion) for Medicare (PDF) http://www.americanlegacy.org/Files/Policy_Report_4_-_Medicaid_Report.pdf 16 pages. Excerpt: "This report focuses on the costs of smoking to Medicaid. Many of the other costs of smoking to society are not included in the analysis, including medical costs to other payers (e.g., Medicare, private insurance, out-of-pocket payments), productivity losses, the effects of secondhand smoke and smoking during pregnancy, and valuations of changes in mortality and morbidity." (American Legacy Foundation) ---------------------------------------------------------- Transparency Matters: Employers Rate PBM Services http://ebn.benefitnews.com/asset/article/474042/staying-current/transparency-matters-employers-rate-pbm-services.html?pg=&topicName=health-care Excerpt: "Financial transparency remains the linchpin to a successful business relationship between an employer and a pharmacy benefit manager, reveals a new study by the Pharmacy Benefit Management Institute." (Employee Benefit News; free registration required) ---------------------------------------------------------- Medical Carriers Tap Into Voluntary Market http://eba.benefitnews.com/asset/article/474049/medical-carriers-tap-into-voluntary-market.html?pg= Excerpt: "Although medical carriers continue to consolidate, that doesn't mean they are offering more of the same old thing. It appears more and more major medical companies are branching into the voluntary market, according to a study by Eastbridge Consulting. The depth of this trend varies widely as some companies are offering a full menu of voluntary products while others are just introducing one or two." (Employee Benefit Advisor; free registration required) ---------------------------------------------------------- NAHU Develops Health Promotion Credential http://www.lifeandhealthinsurancenews.com/cms/nulh/Breaking%20News/2007/12/04-nahu-ab Excerpt: "The National Association of Health Underwriters has introduced a Wellness Certification course. The 2-hour course can give brokers information about how to help human resources managers implement wellness programs . . . ." (The National Underwriter Company; free registration or paid subscription required) ---------------------------------------------------------- If You Want to Dramatically Improve Productivity in the Workplace -- Offer Depression Outreach http://dialog.newsedge.com/portal.asp?site=2006120817070303800165&searchfolderid=pg2006120817223506111719&block=portaldefault&portlet=ep&searchID=266&datetime=%5Bday%3D12%2F5%2F2007%5D&action=sitetopics&hdlaction=story&storyid=[storyid=a1205259.7hc]&epname=BENEFITS& Excerpt: "During Web-based or telephone screening, 604 employees from 16 large employers from a wide variety of industries were identified with clinically significant depression. Half were given an intervention with telephone support from a care manager and their choice of telephone psychotherapy, in-person psychotherapy, or antidepressant medication. The other half were given only feedback about their screening results and advised to seek care from their usual provider. After one year, the employees in the intervention group were 40% more likely to have recovered from their depression, 70% more likely to stay employed, and worked an average of two hours more per week. The extra hours alone are worth $1,800 per employee per year, noted the researchers, which is much more than the $100 to $400 per person cost of the intervention." (Thomson American Health Consultants, Inc. via Human Resource Executive Online; free registration required) ---------------------------------------------------------- Primer on Long-Term Care and Long-Term Care Insurance http://ebn.benefitnews.com/asset/article/304623/communicating-with-employees/retirement-benefit-counselor-brprimer-long-term-care.html?pg=&topicName=for-consumers Excerpt: "Evaluating and comparing LTC insurance policies is more complex than with other forms of coverage. Fortunately, the National Association of Insurance Commissioners has written an informative booklet, 'A Shopper's Guide to Long-Term Care Insurance,' which is a very straightforward but comprehensive overview." (Employee Benefit News; free registration required) ---------------------------------------------------------- Employers Use Stick-and-Carrot Approach for Wellness Programs http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=49207 Excerpt: "Some employers are 'wielding a stick as well as a carrot' by encouraging workers to 'kick unhealthy habits' and enroll in employee wellness programs or contribute more to their health care costs, the Wall Street Journal reports." (Kaiser Family Foundation) ----------------------------------------------------------- (e) POLICY, OPINION, ADVOCACY ---------------------------------------------------------- Sorry, No Remedy: Another Example of the Grand Irony of ERISA http://lawprofessors.typepad.com/laborprof_blog/2007/12/another-example.html Excerpt: "Thanks to Steve Rosenberg at the Boston ERISA and Insurance Litigation Blog for bringing to my attention another recent example where ERISA falls horribly short in providing meaningful remedies to plan participants. Steve explains the case of Mitchell v. Emeritus Management from the United States District Court for the District of Maine." (Workplace Prof Blog) ---------------------------------------------------------- Opinion: Single-Payer Health Care Is the One Way http://www.pnhp.org/news/2007/december/singlepayer_healthc.php Excerpt: "Two important lessons can be learned. First, we need to sever the connection between healthcare and employment. People need continuous, portable coverage that is affordable, comprehensive, and equitable. Second, we cannot depend on the private insurance industry to provide this for us." (The Boston Globe via Physicians for a National Health Program) ---------------------------------------------------------- Review of the 2008 Presidential Candidates on Health Care Reform -- Updated December 3, 2007 (PDF) http://www.cahi.org/cahi_contents/resources/pdf/2008CandidatesHealthCareReform.pdf 15 pages. Excerpt: "While it is still early in the campaign process and plan details are incomplete for most candidates, these summaries provide a snapshot of the candidates and their blueprint for reform. Our intent is to be thorough and accurate in compiling what they have said or indicated they want to do. As their plans take shape we intend to explain what their proposals mean for the health care system and for Americans' ability to have access to affordable coverage. But we also plan to eliminate their spin so that the public understands not just what the candidates have said, but what they mean." (Council for Affordable Health Insurance) ---------------------------------------------------------- Opinion: Hillary's False Claims -- A Response to the Candidate's Statement on the Health Insurance Industry http://www.cahi.org/article.asp?id=932 Excerpt: "Earlier this week, campaigning in New Hampshire, presidential candidate Hillary Clinton asserted that health insurance companies spend $50 billion to avoid paying claims. 'This is all part of their business model,' she was quoted as saying. 'This is how they make money, but it's so bad for the rest of us. I say to them, use the $50 billion to actually take care of people.' " (The Wall Street Journal via Council for Affordable Health Insurance) ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- Labor Force Projections to 2016: More Workers in Their Golden Years (PDF) http://www.bls.gov/opub/mlr/2007/11/art3full.pdf 20 pages. Excerpt: "As the U.S. population ages, the labor force will grow more slowly during the next decade; the older labor force is projected to grow more than 5 times faster than the overall labor force . . . ." (U.S. Bureau of Labor Statistics) ---------------------------------------------------------- PricewaterhouseCoopers Global Report Reveals 'Millennials'' Career Expectations http://accounting.smartpros.com/x60006.xml Excerpt: "A new global report from PricewaterhouseCoopers, 'Managing Tomorrow's People: The Future of Work to 2020,' illustrates how organizations need to adapt to the demands of a rapidly changing world and provides scenarios of future business models to help companies anticipate change and address how they will attract, retain, and motivate the people they will need in the future." (SmartPros Ltd.) ---------------------------------------------------------- Hearing to Examine Executive Pay and Compensation Consultants http://oversight.house.gov/story.asp?ID=1643 Excerpt: "On Wednesday December 5th the Committee will hold a hearing to examine the role played by compensation consultants in determining the pay packages of senior executives at the largest publicly traded corporations. Corporate governance experts, institutional investors, and compensation consulting firms will testify regarding the role of consultants in setting executive pay, efforts to prevent and manage conflicts of interest, and the adequacy of the information available to shareholders and the public." (U.S. House Committee on Committee on Oversight and Government Reform) ---------------------------------------------------------- The SEC Targets 10b5-1 Plans -- Ten Things Executives and Boards Should Be Doing http://paulhastings.com/publicationDetail.aspx?publicationID=801 Excerpt: "In striking similarity to the analysis that precipitated the option backdating cases, recent SEC attention is focused on reports of seemingly fortuitous returns generated by executives selling shares under automatic trading or 'Rule 10b5-1 Plans.' The heightened scrutiny follows an earlier study by a Stanford University School of Business professor that suggested returns under Rule 10b5-1 trading plans were substantially better than would be expected if the trading were truly automatic." (Paul, Hastings, Janofsky & Walker LLP) ---------------------------------------------------------- Reporting a One-Time Tax-Free Movement of IRA Assets to an HSA http://www.complianceheadquarters.com/Question/IRA_120507.aspx Excerpt: "IRA custodians/trustees report a qualified HSA funding distribution based on an individual's age, either younger than age 59½ or already age 59½." (Wolters Kluwer Financial Services) ---------------------------------------------------------- IRS, Treasury Open Window to Correct Unintentional Deferred-Comp Errors http://www.financialweek.com/apps/pbcs.dll/article?AID=/20071204/REG/71204007/-1/FWDailyAlert01 Excerpt: "The new relief gives taxpayers the chance to correct any mistakes made in complying with the rules -- known as 409A -- within the same year to avoid being penalized. Under 409A, employees themselves are punished, with any plan deemed not in compliance resulting in an immediate tax on the vested amount, plus a 20% penalty.' (Financial Week; free registration required) ---------------------------------------------------------- New book: The Decision-Maker's Guide to Equity Compensation http://www.nceo.org/pubs/equity-compensation.html The NCEO presents excerpts from its new book, The Decision-Maker's Guide to Equity Compensation. This book describes the full spectrum of equity compensation plans available to private and public companies. Unlike most books on equity compensation, it focuses on helping decision-makers decide what kinds of equity to choose, and who should get how much and when. The book also includes a CD-ROM with an audiovisual presentation by coauthor Corey Rosen on sharing equity with employees. (National Center for Employee Ownership) ========================================================== Newly Posted Press Releases The SPARK Institute Asks DOL to Clarify QDIA Regulations SPARK Institute http://benefitslink.com/pr/detail.php?id=41415 Health Level Seven, America's Health Insurance Plans, And The Blue Cross And Blue Shield Association Sign MOU To Collaborate On Portability Standards For Personal Health Records Blue Cross and Blue Shield Association http://benefitslink.com/pr/detail.php?id=41416 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Senior Pension Administrator for Milliman, Inc. in CA http://benefitslink.com/modperl/job.cgi?n=H52368 Health and Welfare Plan Manager for The George Washington University in DC http://benefitslink.com/modperl/job.cgi?n=H53452 Field Service and Underwriting Manager for Standard Insurance Company in CA http://benefitslink.com/modperl/job.cgi?n=H53458 Assistant 401(k) Administrator for Huntingdon Valley, PA, third party administration firm in PA http://benefitslink.com/modperl/job.cgi?n=H53459 Post yours! http://EmployeeBenefitsJobs.com/jobs/post_help_wanted.html View all jobs http://EmployeeBenefitsJobs.com/ RSS feed http://EmployeeBenefitsJobs.com/rss/jobs.rss =========================================================== Search previous newsletters: http://benefitslink.com/search =========================================================== Subscribe to the BenefitsLink Retirement Plans Newsletter, Too Sign-up form is at: http://benefitslink.com/newsletter/ =========================================================== This newsletter is sent to you each workday except federal holidays. 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