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July 15, 2003 - 8,367 subscribers
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House Vote Reconfirms Support for Private Competition Provision in Medicare Bill
Excerpt: "The House on July 14 voted 221-191 to defeat a Democrat sponsored motion that would have instructed members of the House-Senate Medicare reform conference committee to support certain provisions in the Senate bill (S 1), instead of proposals in the House bill (HR 1), the New York Times reports." (KaiserNetwork.org)
House Democrats Begin Ad Campaign Criticizing Medicare Bill for Privatization, Drug Coverage Gaps
Excerpt: "House Democrats launched a series of television advertisements July 11, criticizing Republican lawmakers in eight congressional districts for supporting the House Medicare bill, the New York Times reports." (KaiserNetwork.org)
Opponents of Prescription Drug Reimportation Run Ads Targeting Measures in Medicare Bills
Excerpt: "'[A]ggressive' radio advertisements are now airing in Chicago and other markets that aim to stop Congress from approving measures in the Medicare bills (HR 1 and S 1) that would allow U.S. pharmacists to purchase U.S.-made prescription drugs from Canada and other nations and resell them in the United States, the Chicago Tribune reports." (KaiserNetwork.org)
Co-Sponsor of House Drug Reimportation Provision Criticizes Ad Campaign Against Measure
Excerpt: "Rep. Rahm Emanuel (D-Ill.) on July 14 said that he has purchased radio airtime to counter a nationwide advertisement campaign against a bill (HR 2427) that would allow U.S. pharmacists to import prescription drugs from Canada and Europe, the Washington Post reports." (KaiserNetwork.org)
Health Plans of Professional Employer Organizations: MEWAs or Not? (PDF)
25 pages. Excerpt: "The following paper will give an overview of the current regulatory situation, a detailed analysis of the MEWA rules and their origin, and finally will make some observations about practical implications for [Professional Employer Organizations]." (Tess J. Ferrera, Esq. of Kilpatrick Stockton LLP)
Employer Had No Duty to Alert Inquiring Family Member About Former Employee's COBRA Rights
Weeks v. Western Auto Supply Co. (W.D. Va. 2003). Excerpt: "EBIA Comment: We agree, as a general matter, that the notice procedures in this case satisfied COBRA requirements ... But we were struck by the court's apparent failure to consider the surrounding circumstances. A call from a family member on behalf of a critically-ill qualified beneficiary might, in the view of some judges, trigger additional obligations for a group health plan." (EBIA Weekly)
Employee Mistakenly Not Enrolled in Plan at Time of Termination Is Not Entitled to COBRA Coverage
Kobold v. Aetna U.S. Healthcare, Inc. (M.D. Fla. 2003). Excerpt: "[T]he court refused to dismiss the employee's claims under ERISA (based on federal common-law theories of breach of fiduciary duty, breach of contract, and negligence based on agency) but did dismiss the employee's COBRA claim. Finding that the employee was never covered under the plan, the court concluded that he was neither a covered employee nor a qualified beneficiary entitled to continued medical coverage under COBRA." (EBIA Weekly)
Rescission of Health Insurance Proper Where Beneficiary Lied About His Medical History
An insurer did not abuse its discretion when it rescinded a beneficiary's health insurance policy because there was substantial evidence that the beneficiary had misrepresented his medical history on the application form. This was the ruling of the Eighth Circuit U.S. Court of Appeals in Shipley v. Arkansas Blue Cross and Blue Shield (No. 02-2867). (Spencer Benefits Reports)
Some Employers Firing Workers With Disabilities To Lower Health Costs
Excerpt: "The Wall Street Journal on July 14 examines the increased number of companies that have begun to fire employees with disabilities to reduce health care costs. According to the Journal, employees with disabilities have become 'an increasingly common casualty of the drive to cut costs' as health insurance expenses and the number of disabled employees increase and as many companies face bankruptcies and takeovers." (KaiserNetwork.org)
Overview: DOL Issues Advisory Opinion on Use of MEWA Assets After Termination
DOL Advisory Opinion 2003-08A (June 26, 2003). Excerpt: "EBIA Comment: This opinion is noteworthy because it addresses issues relating to the distribution of welfare plan assets on plan termination-- a topic on which there is little guidance. Most of the DOL's positions are not surprising, although the issue of the transfer of surplus assets to the foundation established by the trade association raises interesting questions." (EBIA Weekly)
Links to Items on Executive Comp, Benefits in General
Plan's Failure to Respond to Benefit Appeal Precludes Use of Deferential Standard of Review by Court
Seman v. FMC Corp. Retirement Plan for Hourly Employees (8th Cir. 2003). Excerpt: "[T]he Eighth Circuit [in this case articulates] its own test for what should happen when claims decisions are not issued. The test distinguishes between failure to act on an initial claim and failure to act on an appeal ... EBIA Comment: This is the third appellate court case we have seen in less than a year in which a plan lost the deferential review standard by failing to issue a timely appeal decision." (EBIA Weekly)
Don't Write Obituary for Stock Options Just Yet
Excerpt: "When Microsoft announced last week that it would no longer give its employees stock options, it was a stunner: the business equivalent of Lance Armstrong vowing never to ride a bike again ... What was remarkable about Microsoft is that founder Bill Gates was never greedy enough to take options for himself." (Washington Post)
Fill Out the 2003 Spencer Survey of Benefit Managers
Aspen Publishers Spencer Benefits Reports currently is collecting information for the 2003 Spencer survey of benefit managers and employee benefits departments. This 9th biennial survey requests information concerning compensation, organization, and functional responsibilities of corporate employee benefits departments. The information provided will be collated and published by Spencer Benefits Reports. All survey respondents will receive a copy of the published survey at no charge. (Spencer Benefits Reports)
Newly Posted or Renewed Job Openings
Defined Benefit New Business Consultant
for New York Life Investment Management, LLC
in MA
Senior Compliance Specialist
for The Segal Company
in MA
Financial Planning Manager
for ICMA Retirement Corporation
in CA, CO, FL, IL, VA
Defined Benefit Plan Administrator
for 401k Plus, Inc.
in TX
Benefits Analyst
for CPE
in CA
Benefits Coordinator
for Financial Service firm
in NY
401(k) Client Relationship Manager
for Great West Life & Annuity
in CA
Manager III, Human Resources
for Amgen
in CA
Newly Posted Press Releases
(Post Yours!)
Treasury and IRS Issue Final Regulations for Retroactive Annuity Payments from Pension Plans
(Internal Revenue Service)
Travel Assistance Leader Adds New Services for Corporations
(Worldwide Assistance Services, Inc.)
Declines in Pension Plan Funding Levels Accompanied by Large Increases in Deferred Costs, Towers Perrin Study Shows
(Towers Perrin)
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