| The BenefitsLink Newsletter - Welfare Plans Edition |  |
April 30, 2001
Today's sponsor: Employee Benefits Webcast (click)
Determination of Required Minimum Retirement and Death Distributions from Qualified Plans, IRAs, 457(b) Plans and 403(b) Plans - Instructor: Larry Grudzien of Buck Consultants Presented LIVE on Monday May 14th at 1 p.m. EST by Technical Answer Group. Available for purchase through BenefitsLink - click to register!
Health Plans Are Using the Web For Medical Management
Excerpt: "Although health plans have begun to handle some administrative functions online, a number of barriers must be overcome before they can realize the full potential of the Internet, according to the results of a new survey." (Medscape; free registration required)
Arrest on Charges of Sexual Assault Sufficient to Establish Gross Misconduct, Even Though Dismissed
McKnight v. School District of Philadelphia (E.D. Pa. 2001). Excerpt: "This is the second decision issued by the court addressing a terminated teacher's claim that he should have received a COBRA notice.... As we reported earlier, the teacher was charged with criminal sexual conduct against a former student and was fired." (EBIA Weekly)
Retirees Win ADEA Challenge; Erie County Fails to Satisfy Equal Benefits Test
Erie County Retirees Assoc. v. The County of Erie Pennsylvania (W.D. Pa. 2001). Excerpt: "In this case, the court established that an employer must take into account the premiums that a retiree pays for Medicare Part B when doing an equal benefits analysis to ensure that retirees do not pay a greater percentage of health care coverage costs than do younger employees." (EBIA Weekly)
Eleventh Circuit Upholds Choice of Law Provision in ERISA Plan Accident Insurance Policy
Buce v. Allianz Life Ins. Co. (11th Cir. 2001). Excerpt: "The [group life insurance] policy stated that it was to be interpreted in accordance with the laws of Georgia.... The Eleventh Circuit (like many other jurisdictions) has adopted the rule that if there is a conflict between the plan document and the SPD, the SPD controls. Of greater importance is the holding that a choice-of-law provision is enforceable so long as it is not unreasonable or fundamentally unfair." (EBIA Weekly)
ERISA Preempted State Law Claims of Negligence Against HMO and Physicians
ERISA preempted a beneficiary's state law claims of negligence against an HMO and a physician practice group for delaying approval of necessary surgery for the beneficiary. This was the ruling of the Third Circuit U.S. Court of Appeals in Pryzbowski v. U.S. Healthcare, Inc., et al. (SpencerNet)
Boston City Council Asks State Legislature for Permission to Provide Domestic Partner Benefits
Excerpt: "The [Boston] City Council is asking the state Legislature to approve a home rule petition allowing the city to provide employee benefits to domestic partners." (Boston Globe)
Margin Call
Excerpt: "Former employees of Comdisco call it the nightmare executive perk. Three years ago the Rosemont, Ill.-based technology services firm set up a program to let some 150 managers borrow money from a bank to buy shares.... With the stock down to $2.34 from $21 in 1998, many managers are facing financial ruin." (Forbes.com)
Congress Resumes HMO Liability Discussions
Excerpt: "Congress has resumed talks over how to help injured patients sue their health plans, a Republican lawmaker said Friday. 'Talks are still at a very sensitive stage,' said Rep. Charlie Norwood, R-Ga., who was persuaded by the Bush administration to hold off support of a rival Senate plan." (Associated Press, via Excite News)
Vermont Health Insurers Must Cover Cancer Patients In Clinical Trials
Excerpt: "A bill requiring all Vermont health insurers to cover cancer patients in clinical trials was signed into law on April 26, 2001, by Gov. Howard Dean, himself a medical doctor." (insure.com)
Defined Contribution Health Accounts: the Search for a New Vision
Excerpt: "Proponents of defined contributions for health benefits seek to broaden choice and control costs by raising employees' cost awareness. Although defined contributions for health benefits have sparked considerable debate, they have not yet caught on with large employers.... This Issue Brief presents experts' outlooks on how likely employers are to embrace defined contributions, their views on the advantages and disadvantages and the potential for Internet solutions." (Center for Studying Health System Change)
HHS Privacy Rules Fact Sheet Reinforces Penalties For Misusing Private Health Information
The Department of Health and Human Services has released a fact sheet describing privacy regulations under the Health Insurance Portability And Accountability Act (HIPAA). The regulations, which have an effective date of April 14, 2001, generally will not be applicable to health plans or other covered entities until 2003. The HHS fact sheet notes that under HIPAA, a variety of penalties may be imposed on health plans that misuse private health information. (SpencerNet)
Testimony of American Trial Lawyers Association at Managed Care Liability Hearing
April 24, 2001 hearing on Patient Protections in Managed Care, Subcommittee on Health, Committee on Ways and Means, U.S. House of Representatives. Excerpt: "I was chosen to represent ATLA in this hearing because I have extensive experience in litigating actions against health maintenance organizations and managed care entities." (Health Administration Responsibility Project)
IRS Publishes Free Email Newsletter for Benefits Practitioners
Excerpt: "The Employee Plans News is issued periodically during the year with retirement plan information from the offices of Employee Plans ... Sign-up for the Employee Plans News and you'll get information such as: Details on upcoming EP Benefits Conferences; What's new on the IRS Web Site for Retirement Plans; Information on (as well as links to) Recently Published Guidance; Information on current EP Determination and Examination activities." (Internal Revenue Service)
Participants Say Statements Should Be Short, Simple (PDF)
Excerpt: "T. Rowe Price recently conducted a national study of 21 retirement plan sponsors and participants representing 230,000 workers and retirees, and found that participants aren't interested in the 'fluff' and extra expense associated with some statements." (International Foundation for Retirement Education)
Spring 2001 Edition of IRS' Employee Plans News (PDF)
Excerpt: "Message From Evelyn A. Petschek, Commissioner, Tax Exempt & Government Entities (TE/GE) Division: I am excited to unveil the first edition of the Employee Plans News to the employee plans practitioner community. This newsletter is one of the ways in which we will keep you informed of the latest developments in our programs." (Internal Revenue Service)
Newly Posted or Renewed Job Openings (Post Yours!)
| 401(k)/DC Pension Consultant | for CBIZ Retirement Services Inc. in NY |
| 401(k) Client Service Manager - Full or Part Time | for Independent 401(k) Advisory Firm in Harrisonburg, Virginia in VA |
| Marketing Consultant (Conversion & Case Management) | for WESPAC Plan Services, Inc. in CA |
| Benefit Administration Associate-Multiple Locations | for Towers Perrin in NJ, VA |
| Pension Administrator | for GF Pension Corp. in NJ, PA |
| Account Representative | for JLR & Associates LLC; Health Insurance Services in WA |
| Account Manager | for LegalWise in FL |
| Defined Contribution Plan Administrator | for The Ross Companies in NY |
Newly Posted Conferences (Post Yours!)
| Required Minimum Distributions E-Seminar | in ALL STATES on May 3, 2001 presented by McKay Hochman Co., Inc. |
| Required Minimum Distributions E-Training | in ALL STATES on May 1, 2001 presented by McKay Hochman Co., Inc. |
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