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The BenefitsLink Newsletter -
Welfare Plans Edition
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June 1, 2001
Today's sponsor: EBIA's ERISA Compliance for Health & Welfare Plans (click)


   ERISA Compliance for Health & Welfare Plans is an
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   advisors. Written by leading employee benefits
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GAO: Employer-Based Retiree Health Insurance Benefits Declining, Coverage Rates Have Not Increased
Excerpt: "GAO researchers examined employer survey data, the 1995 to 2000 Current Population Survey, laws and court decisions to determine the state of retiree health benefits. Further, the GAO interviewed employee benefits consulting firms and several large employers." (KaiserNetwork.org)

Older Workers Are Agitated Over Age Bias
Excerpt: "[Sue Shellenbarger's column on CareerJournal.com] last week on how employers are failing to prepare for an aging work force brought a torrent of mail from readers who are already feeling burned. Anger over age bias is growing as the oldest baby boomers turn 55 this year, landing in the category many employers label 'older workers.'" (CareerJournal.com)

Employee Evaluations: How Being Nice Can Lead to a Lawsuit
Excerpt: "But CFOs can also be honest brokers--with special stress on the word 'honest'--on the HR side of employment-bias risk management. Jeff Tanenbaum, a senior law partner with Littler Mendelsohn in San Francisco, says CFOs can, for instance, make sure supervisors are honest in their performance evaluations from the beginning. He advises employers to avoid 'grade inflation,' in which a supervisor gives every employee high marks, 'because you want to be nice.'" (CFO.com)

Welcome to new BenefitsLink advertiser A.E. Roberts Company
Excerpt: "A.E. Roberts Company is a preeminent provider of training and consulting services for HR, benefits, and insurance professionals. Each year A.E. Roberts conducts over 1,200 seminars nationwide on COBRA, HIPAA, Section 125, FMLA, and ADA. Other A.E. Roberts services: seminar manuals and reference guides for these laws, a bi-monthly newsletter on trends and developments in each area, an online COBRA Training & Certification Program, and COBRA, HIPAA, and FMLA compliance evaluation consulting"

Employers Offer Different Incentives to Encourage Generic Use
Excerpt: "Because of the cost savings when generic drugs are prescribed, many health plans encourage the use of generics by offering financial incentives. According to the Wyeth-Ayerst Prescription Drug Benefit Cost and Plan Design Survey Report ... the most common difference between brand-name and generic copayments is $5, although some differ by as much as $20. Approximately 73% of the employers surveyed have a lower copayment for generic drugs than for brand-name drugs." (Medscape; free registration required)

Free Webcast Now Available: Health on the Hill: the Next 100 Days & Beyond
The May 30, 2001 conference in Washington, D.C., was sponsored by the Alliance for Health Reform in collaboration with the Robert Wood Johnson Foundation. Excerpt: "Senior congressional health staffers offer their predictions about what to expect from Congress over the next few months. Panelists discuss issues including a Medicare prescription drug benefit, expanding Medicaid, the uninsured, patients' rights, and the FDA." (KaiserNetwork.org)

Oregon Patients Bill of Rights Signed Into Law
Excerpt: "A 'Patient's Bill of Rights' signed into law on Wednesday by Governor John Kitzhaber would give two million Oregonians new tools to challenge health coverage decisions.... The law takes effect July 1st, 2002. Those covered by HMOs, preferred provider organizations and regular indemnity health insurers will gain new rights." (MSNBC.com)

Patients' Rights Bills Now a Senate Priority
Excerpt: "Trial lawyers, physician groups and consumers are campaigning for legislation that would respond to complaints over alleged HMO abuses by creating a 'patients' bill of rights.' ... [W]ith the impending shift to Democratic control of the Senate, the measure now sits at the top of the list for floor consideration." (CapitolAlert.com)

Poll Finds Low Consumer Confidence in Managed Care
Excerpt: "Only tobacco companies do a worse job than managed care and health insurance companies in serving their customers, a new consumer poll suggests." (Reuters via Yahoo! News)

(Following items also appear in Retirement Plans Edition)


Guidance on ERISA Treatment of Demutualization Proceeds
May 31, 2001 issue of the Compliance Alert. Excerpt: "The Department of Labor (DOL) released an Information Letter that addresses the proper treatment of insurance company demutualization proceeds under ERISA. Briefly, the letter concludes the following: ..." (The Segal Company)

Changes Affecting Split Dollar Life Insurance
Excerpt: "Earlier this year, the Internal Revenue Service issued Notice 2001-10, changing the way some split dollar life insurance arrangements are taxed.... You should review your existing (and prospective) split dollar arrangements and plan potential courses of action.... [See also the free online 2-page Hewitt] Special Report on changes affecting split dollar life insurance ..." (Hewitt Associates)

Grassroots Group Aims to Eliminate Alternative Minimum Tax Treatment of Stock Options
Excerpt: "Our mission is to correct an injustice created by the way in which the Alternative Minimum Tax (AMT) is inappropriately and unjustly imposed upon owners of incentive stock options." (ReformAMT.org)




Newly Posted or Renewed Job Openings (Post Yours!)
Actuarial Analyst (JO#239) for Insurance Company
in CO
401(K) / Retirement Plan Administrator for Sentinel Benefits Group, Inc.
in MA
Retirement Plan Administrator for Certified Public Accounting Firm
in OH
Defined Contribution Administrator - Flexible Hours & Ability To Work At Home Part Time for Expanding Full Service Employee Benefit & Retirement Plan Consulting Firm
in NY
Pension Consultant / Administrator for Madison Pension Services, Inc.
in NY

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