An online, clickable version of this newsletter is available at: http://benefitslink.com/2008/2008_05_12_welfare.html =========================================================== BenefitsLink Health & Welfare Plans Newsletter (Plain Text Format) May 12, 2008 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 "Benefits statements are terrific education tools. Now, they're budget-friendly, too." (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2008_05_12_welfare (Click on the above address or copy and paste it into your web browser.) If you're looking for a low-cost approach to communicating the value of your benefits, BeneCom Associates, LLC can help. Our "preformatted," customized and online approaches to benefit statements are attractive, very reasonably priced and used by employers across the country who thought benefits statements were financially out of reach. To find out how little benefits statements can cost and how they can help your organization, call (860) 674-2626 or visit us at benecomassociates.com. ---------------------------------------------------------- [Guidance Overview] Michigan High Court Says No to Provision of Benefits to Same-S e x Domestic Partners http://www.plansponsor.com/pi_type11/?RECORD_ID=41431 Excerpt: "The Michigan state Supreme Court has decided that providing health insurance benefits to same-s e x domestic partners violates the marriage amendment of the state constitution." (PLANSPONSOR.com) ---------------------------------------------------------- [Guidance Overview] Genetic Discrimination Bill Expected to Be Signed Into Law: Concern Over Some Consequences for Employers http://www.thompsonhine.com/publications/publication1430.html Excerpt: "The breadth of the definition [of 'genetic information' raises numerous questions. For example, an employee seeking time off to care for a family member under the Family and Medical Leave Act must provide certification of the family member's serious health condition in order to qualify for leave. This knowledge would qualify as 'genetic information' under the statute's definition. Will employees be able to claim that subsequent disciplinary actions were founded on genetic information discrimination? Does the collection of family health history for a company-sponsored wellness program put the employer at risk for claims of a GINA violation?" (Thompson Hine) ---------------------------------------------------------- [Guidance Overview] Georgia Gov. Perdue Signs Bill Establishing Tax Exemptions for Employer-Provided High-Deductible Policies http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=52052 Excerpt: "The House bill is expected to provider insurers with $146 million annually in tax breaks. Employers are expected to save $64.8 million, and workers are expected to save $6.7 million, according to an independent analysis by the Georgia Budget and Policy Institute. " (KaiserNetwork.org) ---------------------------------------------------------- [Guidance Overview] Congress Passes Legislation Prohibiting Genetic Discrimination by Health Plans and Employers http://www.ebia.com/weeklyguest/19385/20080530093998a08c37bd9bfbc89009fe061662/BNL080508 Excerpt: "The legislation amends the HIPAA portability rules in ERISA, the PHSA, and the Code, adding new provisions regarding genetic information that will apply to group health plans and insurance issuers offering group health insurance coverage, as well as provisions for insurance issuers in the individual market. It also requires amendments to the HIPAA privacy regulations and prohibits discrimination in the workplace on the basis of genetic information." (Employee Benefits Institute of America (EBIA)) ---------------------------------------------------------- [Guidance Overview] GAO Reports Findings on Participation in HSAs and HDHPs http://www.ebia.com/weeklyguest/19384/200805307a7afd8e3f963b3b76e809344ab00354/BNL080508 Excerpt: "For its report, the GAO examined (1) participation in HDHPs and HSAs, (2) the income characteristics of HSA account holders, and (3) contributions made to and withdrawals made from HSAs. Here are some highlights:" (Employee Benefits Institute of America (EBIA)) ---------------------------------------------------------- Eldercare Benefit Is Boon to Baby-Boomer Employees http://www.kansascity.com/196/story/599801.html Excerpt: "National studies say companies without elder-care benefits stand to lose $2,500 a year per care-giving employee and that every $1 spent on elder-care benefits gets a return of $1.50 in productivity, retention, and reduced absenteeism. . . . [T]he most important part of Hallmark's elder-care package may be the part that costs nothing at all: flex time." (Kansas City Star) ---------------------------------------------------------- The Road Ahead -- Congress and Health Reform http://www.hreonline.com/HRE/story.jsp?storyId=93450456 Excerpt: "The road ahead for healthcare reform may be rocky but an end appears in sight, at least by 2012. HR leaders need to get up to speed on the issue, if they wish to have their concerns considered. One major issue at stake is whether employees will be required to remain in employer plans." (Dallas Salisbury, published by Human Resource Executive Online) ---------------------------------------------------------- Cheers and Doubts for New Jersey Paid-Leave Law; Third Such Law in Nation http://www.hreonline.com/HRE/story.jsp?storyId=93999904 Excerpt: "Fears of abuse and workforce disruptions were expressed by the business community while proponents praised the N.J. law as 'win-win.' HR leaders in other states should take note: This trend is probably not going to go away." (Human Resource Executive Online) ---------------------------------------------------------- Incentives for Patients to Switch From Prescription to Over-the-Counter Drugs Can Produce Large Savings for Members and Plans Alike http://www.aishealth.com/Bnow/hbd050108.html Excerpt: "A program that incentivized patients to switch from prescription drugs to over-the-counter (OTC) alternatives saved members thousands of dollars and provided the insurer with a solid return on investment (ROI), according to the PBM and health plan responsible for the initiative." (Drug Benefit News via AISHealth.com) ---------------------------------------------------------- Health Plan Participants: Think Generic and Save http://www.washingtonpost.com/wp-dyn/content/article/2008/05/09/AR2008050902269.html Excerpt: "Switching to generic drugs could save you up to 80 percent per prescription. Thanks to a tidal wave of brand-name drugs losing patent protection, more generics are available than ever before. . . . Switching to a generic on some company health plans could save you $30 in a snap on the co-payment." (Kiplinger via Washington Post; free registration required) ---------------------------------------------------------- Can VEBAs Alleviate Retiree Health Care Problems (PDF) http://www.law.harvard.edu/programs/lwp/occasionalpapers_Ap9_fin2.pdf 30 pages. Excerpt: "Both private- and public-sector unions and employers can draw important lessons from the defeasance VEBA agreed to by the UAW and GM, which will deploy innovative tactics to distribute cost and risk amongst the company, workers, and retirees. More broadly, the new VEBAs illuminate a gaping hole in the federal tax code, which offers few incentives for employees to save for postemployment medical needs even as employers have shifted the responsibility on them to do so." (Aaron Bernstein; An Occasional Paper Published by Harvard Law School) ---------------------------------------------------------- Paid Maternity Leave Still on the Wishlist for Many U.S. Mothers http://www.epi.org/content.cfm/webfeatures_snapshots_20080507 Excerpt: "In a selection of 19 countries with comparable per capita income, the United States provides the fewest maternity leave benefits in both length of leave and paid time off . . . . " (Economic Policy Institute) ---------------------------------------------------------- 734 Businesses Sign Up for San Francisco Health Program http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/02/BAKC10FB3C.DTL Excerpt: "The businesses represent 12,900 employees, more than half of whom are eligible for the Healthy San Francisco program, which currently enrolls 19,000 people. The other employees are eligible for a health-care reimbursement account." (San Francisco Chronicle) ---------------------------------------------------------- Drug Company Executives Respond to Concerns About Ads at House Panel Hearing http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=52049 Excerpt: "During a hearing of the House Energy and Commerce Committee Oversight Subcommittee on Thursday, executives from Johnson & Johnson, Pfizer and a joint-venture between Merck and Schering-Plough defended TV prescription drug advertisements that lawmakers have claimed potentially misled consumers, the AP/Houston Chronicle reports." (KaiserNetwork.org) ---------------------------------------------------------- Telemedicine a Cost-Effective Alternative to ER Visits http://www.washingtonpost.com/wp-dyn/content/article/2008/05/09/AR2008050901866.html Excerpt: "Telemedicine is a cost-effective way to replace more than a quarter of all visits to the pediatric emergency department, according to a community-wide study conducted in New York." (Washington Post (free registration required)) ---------------------------------------------------------- [Opinion] Is Disease Management Effective? Well, Some Is... http://www.ajmc.com/Article.cfm?Menu=1&ID=10316 Excerpt: "[A]bsent the application of a rigorous definition, disease management has become a meaningless, homogeneous phrase that means whatever the person . . . asking the question wants it to mean." (Robert E. Stone, published by American Journal of Managed Care) ---------------------------------------------------------- [Opinion] Kaiser Family Foundation's Testimony -- Public Views on Direct-to-Consumer Prescription Drug Advertising http://www.kff.org/kaiserpolls/7774.cfm Excerpt: "Mollyann Brodie, Kaiser vice president and director of Public Opinion and Media Research, testified before the House Energy and Commerce Subcommittee on Oversight and Investigations about the public's views of prescription drugs, the pharma.ceutical industry, and direct-to-consumer drug advertising. Brodie's testimony was a part of the hearing titled, 'Direct-to-Consumer Advertising: Marketing, Education, or Deception?'" (Kaiser Family Foundation) ---------------------------------------------------------- [Opinion] 'New America Foundation' Think Tank Calls for End of Employer-Based Healthcare System http://www.hrpolicy.org/news/news_detail.asp?ID=3551 Excerpt: "The paper also highlighted the stark reality for American manufacturers competing globally. It found that U.S. manufacturers pay $2.38 an hour for health benefits, while manufacturers among America's major trading partners pay only $0.96 an hour on average." (HR Policy Association) ---------------------------------------------------------- [Opinion] Congress Should Impose a 3-Year Moratorium on Ads for New Drugs http://www.consumersunion.org/pub/core_health_care/005609.html Excerpt: "Congress should require drug companies to wait three years after approval to advertise new prescription drugs to consumers, says Consumers Union, the non-profit publisher of Consumer Reports magazine. In a letter sent to the House Energy and Commerce Subcommittee on Oversight and Investigations, the group also calls on Congress to provide adequate funding for FDA review and enforcement of false or misleading ads, and to require that all drug ads on TV list a toll free 1-800 number and website so consumers can report serious adverse events to the Food and Drug Administration." (Consumers Union) ---------------------------------------------------------- [Opinion] The Decline in Employer-Sponsored Health Expense Coverage: Why It's Happening and Why We Need to Be Concerned (PDF) http://www.allhealth.org/publications/Private_health_insurance/Employer-Sponsored_Coverage_83.pdf 4 pages. Excerpt: "In September 2007 the Alliance for Health Reform, with support from the Robert Wood Johnson Foundation, held a Capitol Hill briefing to examine the state of employer-based coverage. Panelists were Paul Fronstin, Employee Benefit Research Institute; Robert Galvin, General Electric; Gerald Shea, AFL-CIO; and Len Nichols, New America Foundation. This issue brief incorporates material from that briefing." (Alliance for Health Reform) =========================================================== Sponsored by: WorldatWork WorldatWork publications in the BenefitsLink Bookstore (Advert.) http://benefitslink.com/modperl/a_d_center.cgi?a_d=2008_05_12_welfare (Click on the address above or copy and paste it into your web browser.) WorldatWork, a not-for-profit professional association, is a leading publisher of compensation, benefits and total rewards information. With a portfolio of books, reports, survey briefs, booklets and online learning programs, WorldatWork creates, markets and distributes publications that are critical to improved organizational performance. WorldatWork has contributed to the education and development of business professionals worldwide since 1955. ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- [Guidance Overview] Postemployment Benefit Accounting and Financial Reporting for Government Plan Sponsors http://www.gasb.org/project_pages/postemployment_benefit_accounting_and_financial_reporting.html Excerpt: "In this project, the Board will consider the possibility of improvements to the existing standards of accounting and financial reporting for postemployment benefits -- including pension benefits and other postemployment benefits (OPEB) -- by state and local governmental employers and by the trustees, administrators, or sponsors of pension or OPEB plans. One objective of this project is to improve accountability, or the transparency of financial reporting, in regard to the financial effects of employers' commitments and actions related to pension benefits and OPEB." (Governmental Accounting Standards Board) ---------------------------------------------------------- [Guidance Overview] Prison Sentences Upheld for Unpaid Plan Contributions Under ERISA Theft Statute http://www.ebia.com/weeklyguest/19386/20080530f6ac6cc120800f6a48f6de4fb0775f39/BNL080508 Excerpt: "Over a two-year period, the corporate executives in this case (a CEO and CFO) failed to make required contributions to the company's retirement plans and failed to use employee health plan contributions to pay benefits under that plan (almost $1.4 million in contributions was involved). The executives were convicted of various federal crimes (including ERISA theft and false statements) and given ten- and seven-year prison terms." (Employee Benefits Institute of America (EBIA)) ---------------------------------------------------------- [Guidance Overview] Summary of FASB Statement 123R Share-Based Payment (Revised 05/08/08) (PDF) http://www.fwcook.com/alert_letters/-05-_Revised%205-8-08_%20Summary%20of%20FASB%20Statement%20No.%20123-R-Share-Based%20Payment.pdf Excerpt: "Financial Accounting Standards Board (FASB) Statement No. 123 (revised 2004), Shared-Based Payment (Statement 123R) repeals the longstanding 'intrinsic value' method of accounting for equity compensation prescribed by APB Opinion No. 25 (Opinion 25), and replaces original Statement 123 with a mandate that generally all equity awards granted to employees be accounted for at 'fair value.'" (Frederic W. Cook & Co., Inc.) ---------------------------------------------------------- Growing Deficits Threaten Public Pensions http://www.washingtonpost.com/wp-dyn/content/article/2008/05/10/AR2008051002883.html Excerpt: "The funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall that could soon run into trillions of dollars. But the accounting techniques used by state and local governments to balance their pension books disguise the extent of the crisis . . . ." (Washington Post; free registration required) ---------------------------------------------------------- Retirement to Costa Rica? Retirement Bliss Can Be Dear in Developing World http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wasik&sid=azbjTRWMVeV0 Excerpt: "Health care is another revelation. What would it cost for non-citizens to purchase a health policy in Costa Rica? Now you are getting into the heart of how much it costs to retire to a developing country. Unless you are a citizen of Costa Rica, you may need to buy an overseas policy issued by an insurer in your home country. For U.S. citizens, Medicare generally doesn't cover treatment in foreign countries, so you may have to come back for medical care." (John Wasik on Bloomberg.com) ---------------------------------------------------------- Study Reveals Pre-Retirement Attitudes Reinforce Inadequate Preparation for Retirement http://hr.cch.com/news/pension/050908a.asp Excerpt: "The survey evaluated a cross-section of Americans on their awareness of potential financial risks in retirement and how the awareness impacts the management of their finances before and during retirement." (Wolters Kluwer) ---------------------------------------------------------- [Opinion] Financial Executives Institute Comments on FASB Proposal On Pension, Post-Retirement Benefit Disclosures http://www.financialexecutives.org/eweb/DynamicPage.aspx?site=_fei&webcode=main_detail&key=A9F6BAEE-2C91-4E84-B77F-528C2FC6FAFF Excerpt: "On May 6, 2008, a joint comment letter was sent by FEI's Committee on Benefits Finance ('CBF') and Committee on Corporate Reporting ('CCR') to the Financial Accounting Standards Board (FASB), commenting on Proposed FASB Staff Position (FSP) No. 132(R)-a, Employers' Disclosures about Pensions and Other Postretirement Benefits ('the FSP'). The letter . . . stated support for FASB's objective to improve disclosures for assets held in postretirement benefit plans." (Financial Executives Institute) ---------------------------------------------------------- [Opinion] Letter to FASB on Proposed Staff Position on Disclosure of Retirement and Other Post-Retirement Benefits (PDF) http://www.afponline.org/pub/pdf/CIEBA_Comment_Letter.pdf 5 pages. Excerpt: "As the chief investment officers for 110 major private-sector retirement plans, CIEBA members recognize the desirability of increased transparency and comparability in the financial statements of public companies. However, we posit that the proposals contained in this FSB will not lead to a meaningful increase in transparency and may reduce comparability." (Committee on Investment of Employee Benefit Plan Assets) ========================================================== Newly Posted Events Predictive Modeling Web Summit 2008 in California on June 5, 2008 presented by Healthcare Web Summit http://benefitslink.com/events/detail.php?id=43785 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases Statement By PBGC Director Charles E.F. Millard On Expiration Of Pension Waivers At Delphi Corp. Pension Benefit Guaranty Corporation (PBGC) http://benefitslink.com/pr/detail.php?id=41918 Charles Nelson Named President of Great-West Retirement Services® Great-West Retirement Services http://benefitslink.com/pr/detail.php?id=41916 ERIC Urges Appeals Court to Uphold District Court Dismissal of 401(k) Excessive Fee Case ERIC (ERISA Industry Committee) http://benefitslink.com/pr/detail.php?id=41917 The Female Factor 2008 Women's Institute for a Secure Retirement (WISER) http://benefitslink.com/pr/detail.php?id=41923 Buck Consultants Issues White Paper on Links Between Executive Compensation and Company Performance Buck Consultants, an ACS Company http://benefitslink.com/pr/detail.php?id=41921 Engagement Key to Health Coaching Success, but Elusive Definitions Prevail, says Hummingbird Coaching Services Hummingbird Coaching Services http://benefitslink.com/pr/detail.php?id=41919 Mutual Assurance Administrators Enhances Services with Benefit Informatics Data Analysis and Reporting Benefit Informatics http://benefitslink.com/pr/detail.php?id=41920 Some Variable Annuities worth Considering for Retirees, Contends Journal Article Financial Planning Association http://benefitslink.com/pr/detail.php?id=41922 Announcing a New Actuarial Firm that Listens - Clarity in Numbers LLC Clarity in Numbers, LLC http://benefitslink.com/pr/detail.php?id=41915 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings 401(k)/Defined Contribution Valuation Processor for National Retirement Services, Inc. in CA, NC http://benefitslink.com/modperl/job.cgi?n=H45532 Internal Service Representative for Northwestern Benefit Corporation of Georgia in GA http://benefitslink.com/modperl/job.cgi?n=H54664 401(k) / Defined Contribution Administrator for DATAIR Employee Benefit Systems, Inc. in IL http://benefitslink.com/modperl/job.cgi?n=H54665 Conversion Manager for EPIC Advisors, Inc. in NY http://benefitslink.com/modperl/job.cgi?n=H55121 Manager, Health Care Vendor Management (0806219) for Johnson & Johnson in NJ, NY, PA http://benefitslink.com/modperl/job.cgi?n=H55124 Relationship Manager/Senior Relationship Manager for Mutual of Omaha in AL, AR, FL, GA, LA, MS, NC, SC, TN, VA http://benefitslink.com/modperl/job.cgi?n=H55126 Defined Benefit / Contribution Consultant for Qualified Benefits in CA http://benefitslink.com/modperl/job.cgi?n=H55127 DB Administrator / Actuary for Nicholas, Hicks & Farmer, Inc. in WA http://benefitslink.com/modperl/job.cgi?n=H55128 401(k) Plan Administrator for Retirement Planners in VA http://benefitslink.com/modperl/job.cgi?n=H55129 TPA Administrator-Level 1 for Atlantic Pension Services, Inc. in PA http://benefitslink.com/modperl/job.cgi?n=H55131 Retirement Plan Services Administrator for Associated Bank in IL http://benefitslink.com/modperl/job.cgi?n=H55134 CRTFL - Customer Service Representative for Citi in ME http://benefitslink.com/modperl/job.cgi?n=H55136 Sr Plan Administrator for American National Insurance Company in TX http://benefitslink.com/modperl/job.cgi?n=H55137 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. If you do not wish to receive this newsletter any longer, just click on this address (if it appears all on one line): https://benefitslink.com/cgi/s/s/s.pl?e=&l=12&r=1 If that address has been chopped into two lines by your email reader, it won't work, so use one of these easy ways to unsubscribe: 1. Visit this web page: http://benefitslink.com/newsletter/unsubscribe/ and enter the following email address into the two boxes: (That's the exact address under which you are subscribed.) Check the box that says BenefitsLink Health & Welfare Plans Newsletter in plain text format, and then click the "Unsubscribe" button. 2. Or send an email to hollyhorton@benefitslink.com asking her to unsubscribe from the BenefitsLink Health & Welfare Plans Newsletter (plain text format). 3. Or call Holly Horton at (407) 644-4146 and ask her to unsubscribe from the BenefitsLink Health & Welfare Plans Newsletter (plain text format). This email is published by: BenefitsLink.com, Inc. 1298 Minnesota Avenue, Suite H Winter Park FL 32789 (407) 644-4146 Fax: (407) 644-2151 Copyright 2008 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission. Anyone can receive these emails; just have them sign up at this Web page: http://benefitslink.com/newsletter/ To view earlier issues: http://benefitslink.com/newsletters/ We're proud of our Privacy Policy: http://benefitslink.com/privacypolicy.html