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July 31, 2003 - 8,429 subscribers
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“New COBRA Notice Rules” Now available on Tape and CD! Are you familiar with the DOL’s new proposed COBRA notice requirements? On May 28, the U.S. Department of Labor (DOL) issued proposed regulations that clarify and expand group health plans’ obligations to provide notices of COBRA continuation coverage rights to qualified beneficiaries. Gain insight on the DOL’s proposal by purchasing a tape or CD of this important audio conference.
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Trade Act Advance Tax Credit Procedures Published By IRS; Employers Largely Off the Hook
Excerpt: "When the IRS first announced the advance tax credit, it was unclear how it would be implemented and what role the employer would play in collecting premiums.... But it now appears that employers ... are not responsible for determining TAA eligibility, nor are they expected to advance the portion of the premium the worker is deducting in advance as a tax credit." (OnQue Technologies Inc.)
Executive Who Voluntarily Resigned Could Not Pursue Claim For Severance Benefits
A former company executive who voluntarily resigned from his position was not entitled to severance benefits because the executive was not a 'participant' in the severance plan authorized to bring an action under ERISA. This was the decision of the Third Circuit U.S. Court of Appeals in Miller v. Rite Aid Corporation (No. 02-2464). (Spencer Benefits Reports)
More Scrutiny Planned for Drug Formulary Decisions by Health Plans
Excerpt: "In the final version of its long-awaited Compliance Program Guide for Pharmaceutical Manufacturers, the U.S. Department of Health and Human Services specifically endorses formularies ... as an effective tool for managing drug benefits ... But the document, prepared by the Office of Inspector General (OIG), also warns that relationships between drug companies and those who put together formularies can easily veer into the unlawful." (Drug Benefit Trends via Medscape; one-time registration required)
Consumer Ads Seen as Fueling Rising Prescription Drug Benefit Costs
Excerpt: "Corporate executives of companies that offer health care benefits to employees are becoming increasingly concerned about the rising costs of providing prescription drug benefits. In a survey, these executives singled out direct-to-consumer advertising of prescription medications as the single factor most responsible for rising costs." (Drugs & Therapy Perspectives via Medscape; one-time registration required)
Massachusetts Bill Would Ban Prescription Drug Advertisements
Excerpt: "A bill has been introduced in the Massachusetts House that would prohibit all direct-to-consumer prescription drug advertising by pharmaceutical companies, but the legislation has little chance of being approved, the Boston Herald reports." (KaiserNetwork.org)
Drug Industry Defends Direct-to-Consumer Advertising
Excerpt: "At a U.S. Senate hearing [on July 22, 2003], a counsel for the Pharmaceutical Research and Manufacturers of America (PhRMA) said the burden of proof should be on critics to show why 'direct-to-consumer' ads are harmful, rather than on industry to prove they are beneficial." (Reuters via Medscape; one-time registration required)
Employer-Sponsored Single and Family Health Insurance Coverage: Selection and Cost, 2000
Excerpt: "Health insurance provided by employers is a key source of coverage for both employees and their families. In 2000, more private-sector employees obtained family coverage health insurance through their employers than single, self-only coverage." (Agency for Healthcare Research and Quality)
Available for Purchase from American Health Lawyers Association: Papers on 'Managed Care 2003'
Papers available from the organization include 'Any Willing Provider Laws and Medical Necessity Denials,' 'Consumer-Directed Health Plans: A Health Plan's Strategy,' 'Expanding Definitions of Fiduciary Duty Under ERISA: How to Protect Your Plan,' 'Tiered Benefit HMO Plans: The Next Generation of Managed Care Plans?" (American Health Lawyers Association)
Opinion: Medicare Drug Coverage Not Only Bad Health Policy, We Just Can't Afford It
Excerpt: "[T]he projected 10-year $400 billion cost is just a down payment that will not produce the necessary Medicare improvements and needed reforms. Instead, Congress will have passed a bill that in future years will require huge new taxes--new taxes that will threaten the recently enacted tax plan.... The Medicare prescription drug proposal is bad health policy, exacerbating the flaws in a system that has almost no market-based incentives to improve service and control costs." (The Heritage Foundation)
Insurers Urged to Reward Healthy Behavior
Excerpt: " Insurance companies should give discounts to customers who lose weight and exercise every day and the U.S. government plans to help them do it, Health and Human Services Secretary Tommy Thompson said on [July 21, 2003]." (Reuters via Medscape; one-time registration required)
Presidential Candidate John Edwards Discusses Health Care Proposal on PBS' NewsHour
Excerpt: "PBS' 'NewsHour with Jim Lehrer' on July 30 interviewed Sen. John Edwards (D-N.C.) as part of a series of health care conversations with Democratic presidential candidates ..." (KaiserNetwork.org)
SSA's Electronic Disability Claims Processing Strategy Faces Risks
21 pages. Excerpt: "SSA's goal to establish a more efficient, paperless disability claims processing system is important, and one that could benefit millions. To achieve this goal, SSA's immediate focus is on developing an electronic folder to store claimant information and large volumes of medical images, files, and other documents that are currently maintained in paper folders, and then make this information accessible to all entities involved in disability determinations." (U.S. General Accounting Office)
Social Security Disability: Reviews of Beneficiaries' Disability Status Require Continued Attention
43 pages. Excerpt: "The Social Security Administration (SSA) has had difficulty in conducting timely reviews of beneficiaries' cases to ensure they are still eligible for disability benefits. SSA has been taking steps to improve the cost-effectiveness of its review process. SSA has linked the review process to eligibility for a new benefit that provides return-to-work services." (U.S. General Accounting Office)
Overview: DOL Issues Proposed Regulations Governing COBRA Notice Requirements (PDF)
At p. 2 of 6-page document. Excerpt: "[If] the DOL is able to finalize these regulations this year, plan administrators of calendar year plans will likely have a very short time in which to comply with the final regulations. Thus, it is prudent to begin considering the ramifications of these proposed regulations now." (Trucker Huss)
Links to Items on Executive Comp, Benefits in General
Public Outrage Starts to Build over Compensation for Retired CEOs
Excerpt: "First, there was the retirement fund disaster at Enron ... Then there was a stink about the benefits General Electric was providing for Chief Executive Jack Welch ... And this spring, Delta Air Lines and American Airlines created public relations nightmares big enough to mobilize the AFL-CIO. This year the national labor organization started challenging what it sees as abusive retirement packages." (The Atlanta Journal via NewsAlert.com)
A Retreat from Options: Microsoft's New Stock-Compensation Program (PDF)
Excerpt: "Microsoft's recent announcement that it will no longer grant stock options to its employees and will allow underwater options to be sold has created a great deal of interest in the business community. This letter outlines the program changes, discusses several issues and presents the pros and cons of such actions." (Frederic W. Cook & Co., Inc.)
Opinion: the Growing Gap Between Rich and Poor
Excerpt: "[P]rivate pensions are eroding at breakneck speed. Corporate pension plans lost between $300 billion and $500 billion over the past two years. The [PBGC] is currently broke. By 2031, estimates are that companies will cover less than 10 percent of retirees' health expenses. Already, 20 percent of companies have eliminated retiree medical plans for new hires, and 17 percent will require new hires to pay the full premium for coverage." (Socialist Worker ONLINE)
Stock Options: the End of the Affair?
Excerpt: "Some reports say there are as many as 9,000 'Microsoft Millionaires,' others say the number isn't quite so high.... So it was front-page news when Microsoft announced early in July that it was shutting down its options program and planning instead to award employees shares of stock, which do not offer the same potential for stupendous gains." (The Wharton School of the University of Pennsylvania)
Opinion: The Supreme Court Ruled for Privacy, Not for Gay Marriage
Excerpt: "The sodomy ruling won't lead to same-sex marriage. Despite what Scalia says, it's hard to see how it could.... It is true that the Constitution's 'full faith and credit' clause requires states to recognize each other's laws and judgments. 'However,' notes Dale Carpenter, a constitutional law professor at the University of Minnesota, 'the full faith and credit clause has never been interpreted to mean that every state must recognize every marriage performed in every other state.'" (National Journal via The Atlantic Online)
Newly Posted or Renewed Job Openings
Actuary (Enrolled)
for SDPC
in CA
Associate Plan Administrator
for Jones & Roth P.C. (J&R PC)
in OR
401(k) Manager
for Financial Consulting Firm
in DE
Account Executive/Client Services
for Diversified Investment Advisors
in MA
UNDERWRITER Group Health
for EE Benefits Underwriting and Sales Organization
in CA
Newly Posted Press Releases
(Post Yours!)
Standard Insurance Company Upgrades Its Retirement Planning Center
(Standard Insurance Company)
Employee Relocation: Customized Relocation Packages Drive Cost Savings Success
(Best Practices, LLC)
412(i) Company Bootcamp Draws Participants From 13 States!
(The412iCompany)
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