| The BenefitsLink Newsletter - Welfare Plans Edition |  |
June 7, 2001
Today's sponsor: Employee Benefit Plan Review magazine (click)
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Child Tax Credit Will Grow Up To Twice Its Size
Excerpt: "Now, under a new tax bill approved by Congress on Saturday, the child tax credit will get a lot bigger. When it first took hold in 1998, it was worth $400 per child. In 1999, it rose to its current level of $500. Under the new tax bill, expected to be signed by President Bush soon, the credit will jump to $600 immediately, and will reach higher levels in later years ..." (Neil Downing in the Providence Journal)
Private Health Insurance: Federal Role in Enforcing New Standards Continues To Evolve
19 page GAO report. Excerpt: "Because the Congress is currently considering new patient protection standards -- and because some proposals would model enforcement on the approach used in HIPAA and other laws -- you asked us to provide an update on federal agencies' enforcement of the existing health insurance standards." (U.S. General Accounting Office)
Provision of Domestic Partner Benefits Only To Same-Sex Couples Is Constitutional
The Seventh Circuit U.S. Court of Appeals has affirmed the dismissal of a class action lawsuit challenging the constitutionality of the Chicago Board of Education's policy of extending domestic partner benefits only to same-sex couples. The case is Irizarry, et al. v. Board of Education of the City of Chicago. (SpencerNet)
Teen Driving Safety Program May Mean Savings for Group Insurance Plans
Excerpt: "The success of the 'I Promise Program' depends on insurers embracing it.... 'Insurers should see a 700% return on investment using figures similar to commercial vehicle monitoring services. However, the social return is immeasurable,' [said Gary Direnfeld, the founder and executive director of the program]." (BusinessInsurance.com)
Frequently Asked Questions About the Federal Employees' Long-Term Care Insurance Program
Excerpt: "We know that you may have more questions than we have answered here. There are some questions that we cannot answer until we negotiate with the insurance company and award a contract. And other issues won't be resolved until the open enrollment period in 2002." (Office of Personnel Management, Long Term Care Insurance Program)
Baby Boomers Propel US Drug Spending
Excerpt: "If you think senior citizens are to blame for the exploding rate of growth in US prescription drug spending, think again. Contrary to popular belief, America's baby boomers are primarily responsible for driving up year-over-year drug spending per person, according to a report issued on Wednesday by pharmacy benefits management giant Merck-Medco." (Medscape; free registration required)
Wall Street Journal Outlines Patients' Rights Debate; AAHP Reiterates Opposition of McCain Bill
Excerpt: "The June 7 Wall Street Journal outlines the 'new debate' over a patients' bill of rights, on which Senate Democrats -- in charge of setting the Senate's agenda for the first time since the 'demise of the Clinton health care plan in 1994' -- intend to 'speed up action.'" (KaiserNetwork.org)
Managed Care Group Opposes Patients' Rights Bill
Excerpt: "The 'patients' bill of rights' expected to be the subject of debate in the Senate in coming weeks would hurt patients more than it would help them, leaders of the managed care industry said Wednesday." (Reuters via Excite News)
IRS Changes Long-Standing Position On Captive Insurers and Deductibility
In Rev. Rul. 2001-31, the Internal Revenue Service obsoletes a 1977 revenue ruling that adopted an 'economic family' theory in declaring that insurance premiums paid to a captive insurer were not deductible. (SpencerNet)
Federal Agency Puts Finishing Touches on Long-Term Care Program for Government Employees
Excerpt: "As the Office of Personnel Management prepares to offer long-term care insurance to employees and retirees, it plans to negotiate with insurers underwriting standards that will determine who is eligible for coverage and who can be excluded." (Washington Post)
Principal Benefits Provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (PDF)
8 pages. Excerpt: "This Alert focuses on the employee benefits provisions. Although most of them affect retirement plans, several relate to health and welfare plans. Plan sponsors will need to examine the long list of changes and determine how best to take advantage of them." (Aon)
Andersen Human Capital Alert Describes Principal Provisions of Tax Act (PDF)
June 1, 2001 issue; 14 pages. Includes discussion of recent IRS private letter rulings of interest, as well as other employee benefits developments. (Andersen)
Form 5500 Workshop Provides Guidance For Satisfying Annual Report Rules
Excerpt: "Among the issues that may arise are: how a change in the name of the plan sponsor needs to be reported, where a pre-1999 late Form 5500 should be filed, whether a Form 5500 needs to be filed for a 403(b) plan to which an employer made matching contributions, may only one Form 5500 be filed for a cafeteria plan that provides health insurance, dental insurance, medical reimbursement, and other welfare benefits ..." (CCH)
ASPA Asks PWBA To Grant Blanket Extension For Filing Year 2000 Form 5500 Reports
In a May 29 letter to the Department of Labor's Pension and Welfare Benefits Administration (PWBA), the American Society of Pension Actuaries (ASPA) requests a blanket extension for filing the year 2000 Form 5500 annual return/report. (SpencerNet)
New from EBRI: Employer Spending on Benefits 1999 (PDF)
The June 2001 issue of Facts from EBRI, a monthly publication providing timely statistics on a variety of employee benefit issues. (Employee Benefit Research Institute)
Issues in Accounting for Stock Compensation Under APB Opinion 25 and FASB Interpretation 44 (PDF)
15 pages. Set of consensus points reached by the Emerging Issues Task Force as of June 6, 2001. (Frederic W. Cook & Co., Inc.)
Newly Posted or Renewed Job Openings (Post Yours!)
| Plan Administrator | for Creative Plan Designs, Ltd. in NY |
| ERISA/Employee Benefits Attorney | for Perkins Coie LLP in WA |
| Assistant Administrator | for Retail Wholesale Department Store and International Union -- An Employee Benefit Organization in AL |
| Employee Relations Manager | for RMH Teleservices in PA |
| Quality Control Document Specialist | for SunAmerica Financial in CO |
| Flexible Spending Account/125 Consultant | for Leggette Actuaries in TX |
| Senior Pension Processor | for Zenith Administrators in MD |
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