| The BenefitsLink Newsletter - Welfare Plans Edition |  |
May 22, 2001
Today's sponsor: The COBRA Administrator Handbook (click)
The first and only compliance manual designed specifically for COBRA self-administration. Simple step-by-step format ensures accurate COBRA documentation, efficient record keeping and complete COBRA compliance protection. The only manual written by expert third-party administrators for COBRA nonprofessionals.
IRS Releases Q&As on Cafeteria Plans, Group Term Life Insurance Coverage, Domestic Partner Coverage
Chief Counsel Advice 200117038 (Apr. 27, 2001). Excerpt: "The IRS's Chief Counsel's Office for Tax Exempt Government Entities (TEGE) has released questions and answers on employment tax issues of state and local governments (the guidance in the Q/As is instructive for other employers too). Following are the questions on cafeteria plans, group term life insurance and domestic partner coverage, along with abbreviated versions of the IRS's responses." (EBIA Weekly)
COBRA Denial Due to Late Election Upheld Even Though Deadline Date in Election Notice Was Incorrect
Deering v. O.K. Industries, Inc. (8th Cir. 2001). Excerpt: "The election notice stated that the deadline to 'submit' the election form to the plan administrator was September 17 ... However, the qualified beneficiary's election was not received until September 28 ... [T]he court first concluded that the 60 day election period began running on ... the date the qualified beneficiary received the election notice. Under that approach, the election had to be made within 60 days-- by September 22." (EBIA Weekly)
Restoration of Same Position Not Present If Job Duties Differ, Even Though Title and Salary Restored (PDF)
Cooper v. Olin Corp. (8th Cir., May 1, 2001). FindLaw's description of the case: 'Under the Family Medical Leave Act, restoration of pay, title and benefits does not necessarily constitute restoration to the same position if the job duties and essential functions of the newly assigned position are not materially different." (FindLaw.com)
Life Insurance Benefit Claim Under Viatical Agreement Invalid Due to Conflict with Divorce Decree
Gander v. Gander (8th Cir. 2001). Excerpt: "Implicit in the court's analysis, of course, is that the divorce decree giving beneficiary rights to the children effectively prevented the participant from changing his designation under this ERISA plan.... [I]t remains to be seen how the principles articulated in Egelhoff regarding the primacy of plan language will affect future cases addressing the issue of how federal common law should apply to beneficiary designation disputes." (EBIA Weekly)
Association Health Plan Bills Introduced In Congress
Companion bills to expand 'association health plans,' or multiple employer welfare arrangements (MEWAs), have been introduced in Congress. The Small Business Health Fairness Act (S. 858), introduced by Sen. Kay Hutchinson (Texas), and H.R. 1774, introduced by Rep. Ernie Fletcher (Ky.) along with 47 cosponsors, would allow small employers to join health insurance purchasing pools. (SpencerNet)
AFL-CIO Coalition of Retirees Seeks to 'Stir Up' Debate on Prescription Drug Prices, Industry Says
Excerpt: "Hoping to 'stir up debate' over prescription drug reform well before the 2002 congressional elections, an AFL-CIO group of retired union members will this week launch a new campaign on the issue, the AP/Baltimore Sun reports." (KaiserNetwork.org)
AAHP Targets McCain Patients' Rights Bill
Excerpt: "The American Association of Health Plans, which supports neither the patients' rights proposal by Sens. John McCain (R-Ariz.), John Edwards (D-N.C.) and Edward Kennedy (D-Mass.) (S 283) nor the one by Sens. Bill Frist (R-Tenn.), James Jeffords (R-Vt.) and John Breaux (D-La.) (S 889), has 'clearly targeted the [former] for harsher criticism,' saying it would increase physicians' vulnerability to lawsuits, CongressDaily reports." (KaiserNetwork.org)
Stalemate Likely On Patients' Rights Unless Bush Pushes
Excerpt: "As good a compromise as it might be, the patients' bill of rights just endorsed by President Bush isn't likely to become law unless Bush undertakes a concerted campaign to pass it." (RollCall.com)
Employer May Send TPA Enrollment Data In Non-Standard Format
In its most recent questions and answers concerning the final rules for electronic transaction standards for health care plans, the Department of Health and Human Services discusses whether a self-funded employer that contracts out administration to a third party administrator must submit electronic enrollment data in the standard form detailed in the regulations (SpencerNet)
Drugmakers Need to Break Their Blockbuster Addiction
Excerpt: "The industry would be wise to diversify its revenue streams. Otherwise, the pressures on it to ease up on prices will only intensify." (BusinessWeek Online)
NCQA Expands Health Plan Report Card To Include PPOs, Certification Information
Excerpt: "The [Health Plan Report Card] has expanded to include PPO plans' NCQA Accreditation status and more detailed information about their performance in the areas of Access and Service and Qualified Providers, the two areas measured under NCQA's PPO Plan Accreditation program. NCQA introduced the program in August 2000 to provide consumers with objective quality information on the largest and fastest growing sector of the health care industry." (National Committee for Quality Assurance)
Managed Care Not Dead Yet, Say CEOs
Excerpt: "Despite chatter in policy circles about employers moving away from insurance to 'defined contributions,' and consumers designing their own plans on the Internet, managed care will continue to play a key role in the nation's healthcare system, executives of four major health plans told managed care conference participants." (Medscape; free registration required)
Managed Care Plans Shift to Accommodate Complaints
Excerpt: "In response to complaints from consumers and employers, many managed care plans are offering easier access, and waiving requirements for referrals. For providers, plans are eliminating pre-authorizations and raising fees. But while those changes lower administrative costs and make patients and providers happier, said [Paul Ginsburg of the Center for Studying Health System Change], 'there is also an erosion of [plans'] ability to control utilization.'" (Medscape; free registration required)
HCFA Proposes To Update Medicare Payments For Skilled Nursing Facilities
The Health Care Financing Administration (HCFA) has issued proposed regulations that would update fiscal year 2002 Medicare payment rates for skilled nursing facilities. The proposed regulations were published in the May 10 Federal Register. (SpencerNet)
CareerJournal.com Readers Sound Off on Work-Life Issues
Excerpt: "Our recent series of columns dealing with workplace issues that bleed into our personal lives generated a variety of reader responses." (CareerJournal.com)
Elder Care Calls On Workers in a Different Way
Excerpt: "'Child care has been on the front burner for a long time, but as the population gets older, we're more likely to be dealing with elder-care issues,' said Andrea Moselle, the company's manager of work/life." (Chicago Tribune)
Welcome to new BenefitsLink advertiser whereiwork
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Another Question is Answered in the Stock Options, Restricted Stock and Other Long-Term Employment Incentives Q&A Column
In regard to section 83(b) elections to accelerate taxation, is there a specific form or format to follow in the election itself? (BenefitsLink.com)
Members Selected for New IRS Tax Exempt Advisory Committee (PDF)
Excerpt: "The Internal Revenue Service today announced the selection of the 18 members of the first Tax Exempt/Government Entities Advisory Committee (TEAC).' Employee Plans members are Brian L. Anderson of Madison, WI; Mary Beth Braitman of Indianapolis, IN; Jonathan Barry Forman of Norman, OK; Craig Hoffman of Jacksonville, FL; John W. Schroeder of Santa Clara, CA; Donald J. Segal of New York, NY. (Internal Revenue Service)
Court Approves Settlement of Microsoft Perma-Temp Case
Excerpt: "Under the Microsoft settlement agreement, a former temporary worker is required to have worked for Microsoft for at least nine months and worked at least 750 hours in six-month offering periods between January 1, 1987 and June 30, 2000 in order to be eligible for a portion of the $97 million settlement fund." (EBIA Weekly)
Nonqualified Deferred Compensation: Filling the Gaps
Excerpt: "Highly compensated executives know that limits on qualified benefit plans mean they're going to end up with proportionally less retirement savings than other employees, particularly in the area of 401(k) plans. So if your organization doesn't take steps to restore that equity-- with nonqualified deferred compensation plans-- it can cost you key talent." (Aon)
"Options Only" Stock Plans: Apparently Still Viable
Excerpt: "[W]e have just examined the spring 2001 proxy statements of over 40 large cap companies that reported making stock options grants-- but no other types of long-term incentive awards-- a year ago. We have been searching for specific proposals to their shareholders that would lessen the employee retention damage of underwater options, whether now or in the future. This article reports our preliminary findings." (Aon)
Spencer Survey of Benefits Managers Continues
Charles D. Spencer & Associates, Inc., continues to collect information for its 2001 Spencer survey of benefits managers and employee benefits departments. More than 300,000 employees already have been counted, with the average benefit managers' salary topping $78,000. The deadline for completing the survey is June 8. (SpencerNet)
Newly Posted or Renewed Job Openings (Post Yours!)
| Retirement Sales District Manager | for ADP, Inc. in MI |
| Summary Plan Description Writers--Freelance | for In Plain English, Employee Benefits Communication Consultants in ALL STATES |
| Client Relationship Manager (401k) | for Financial Services Organization in WI |
| Relationship Manager | for Reliance Trust Company in GA |
| Risk Management Analyst | for Grainger in IL |
| DC Pension Administrator | for Pension & Financial Services, Inc. in PA |
| Benefits Manager, Human Resources | for The Vanguard Group in PA |
Newly Posted Press Releases
| Rivio™, Inc. Closes $12 Million in Funding (Rivio, Inc.) |
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