| The BenefitsLink Newsletter - Welfare Plans Edition |  |
June 13, 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!
Managed Care Lawsuits by Patients Can Proceed
Excerpt: "A federal judge refused Tuesday to drop a proposed nationwide class-action suit by patients against seven leaders of the managed care industry, but decided some claims must be revised. U.S. District Judge Federico Moreno issued a similar ruling in March in a companion suit by the nation's 600,000 doctors." (Associated Press)
Class Action Suits Against HMOs Can Proceed, District Judge Rules
Excerpt: "A federal judge in Miami has kept alive a series of lawsuits challenging the cost-control policies of the nation's largest HMOs, but has ruled that parts of the suits must be amended to go forward. The ruling comes in a group of suits brought on behalf of patients insured through Aetna, CIGNA, Humana and other managed care companies. The plaintiffs say the companies' policies put profits ahead of patient care and amounted to a conspiracy that violated federal law." (Hartford Courant)
Judge Drops Some Claims In HMO Class Action Lawsuits; Keeps Others
Excerpt: "A federal judge in Florida handed the nation's big health insurers what appeared to be a modest victory Tuesday by partially dismissing claims in a set of lawsuits accusing HMOs of fraudulently using financial incentives to limit medical care." (Reuters via Excite News)
Judge Orders Contraceptives Coverage in Health Plan
Excerpt: "In a widely watched lawsuit, a drugstore chain was ordered Tuesday to include contraceptives for women in its employee health insurance plan. U.S. District Judge Robert S. Lasnik ruled in favor of pharmacist Jennifer Erickson in her suit against Bartell Drug Co. in a case that marks the first federal challenge to employers who don't cover birth control." (Associated Press via the Washington Post)
Judge: Add Birth Control To Employer's Health Plan
Excerpt: "Bartell Drugs must cover prescription contraceptives in its employee-medical plan, a federal-court judge ruled yesterday, because not doing so discriminates against female employees. U.S. District Judge Robert Lasnik said not treating contraception prescriptions the same as other drugs or devices violates the Civil Rights Act of 1964." (Seattle Times)
Federal District Judge Says Employer Must Pay for Contraceptives Coverage
Excerpt: "Bartell Drug Co. must pay for prescription contraceptives for its female employees, a federal judge ruled yesterday in a decision that may lead employers around the country to do the same." (Seattle Post-Intelligencer)
California Governor Pledges To Sign Domestic Partners Bill
Excerpt: "In a meeting with Chronicle reporters and editors, Davis said he supported giving domestic partners the same rights that married couples have under the federal Family and Medical Leave Act, which guarantees workers the right to take unpaid time off to care for a new child or sick relative." (San Francisco Chronicle)
Gay Group to Call for Boycott of Exxon Mobil
Excerpt: "Elizabeth Birch, executive director of the Washington, D.C.-based Human Rights Campaign, said the company left the group 'no choice' but to call for a boycott after it lobbied unsuccessfully for the benefits and employment protections." (The San Francisco Chronicle)
Census: Number of Same-Sex Partner Households Rising
Excerpt: "The number of American households indicating same-sex partners skyrocketed over the past decade, according to the first set of Census 2000 figures on the subject." (ABCNews.com)
Fast-food Chains Not Flipping People
Excerpt: "On the career path, fast-food jobs are steppingstones most people rush to hop off. Now the industry is working harder than ever to change that. Tired of the scramble to fill openings and the high cost of training new employees, fast-food chains are offering benefits that were unheard of 10 years ago -- including 401(k) retirement plans, health insurance, and even stock options." (The Wall Street Journal)
Amcast Retirees Losing Health Care Coverage
Excerpt: "Amcast Industrial Corp., in a letter sent to its retirees, said it will terminate retiree health care coverage, including the company's mail order prescription drug plan, on July 1." (Dayton Daily News)
Soaring Health-Care Costs Afflict Nonprofits
Excerpt: "The last time her nonprofit's rates went up, they rose by 50 percent for some employees, up to 100 percent for others, depending on the employees' family situation. 'It's an incredible burden,' Hamlin said. 'So I'm shopping.' Soaring health-care costs ... afflicts the nonprofit and faith communities, too." (Charleston Gazette)
Insurer's Voucher Plan Is First In Washington State; Does It Boost Workers' Choice, or Just Cost?
Excerpt: "After more than a year of rumblings around the country that a new type of health insurance would revolutionize the industry, 'defined-contribution' health plans are being offered in Washington by one of the largest insurers. Under the plans' most pure form, employers would hand employees a voucher, give them a push toward a list of insurance plans and wish them luck." (Seattle Times)
Daschle Predicts Passage of Patients' Rights Bill
Excerpt: "Despite a veto threat, Senate Majority Leader Tom Daschle said Tuesday he has the votes to pass a Democratic-backed HMO reform bill that would guarantee patients a right to sue insurers." (ABCNews.com)
Coalition Launches Campaign to Defeat Patients' Rights Bill, Criticizes AMA
Excerpt: "A leading coalition of business and insurance groups Tuesday announced that it will use television, radio, and print ads to warn the public of dangers to the healthcare system posed by the patients' rights bill that the Senate is soon to debate." (Medscape; free registration required)
Norwood Will Support Democrats' Patients' Rights Bill
Excerpt: "In a blow to President Bush, a key House Republican has decided to support patients' rights legislation that Senate Democrats are bringing forth as their first signature bill since they took control of the Senate." (New York Times; free registration required)
Prices of Most-prescribed Drugs for Seniors Rose More Than Twice the Rate of Inflation Last Year
Excerpt: "According to the report, over one-third (18 out of 50) of the most-prescribed drugs for seniors rose in price at least three times the rate of inflation from January 2000 to January 2001." (Families USA)
Source of Injury Exception in Health Plan Needs Administrative Guidelines
Excerpt: "The HIPAA Nondiscrimination regulations, applicable for new provisions on the first day of the first plan year beginning on or after July 1, 2001, contain a 'source of injury' modification ... If an injury results from a medical condition or act of domestic violence, the plan may not deny benefits for the injury, if it is an injury the plan would otherwise cover." (SunGard Corbel)
CalPERS Seeks Innovative Direct Health Care Contracting Relationships
Excerpt: "CalPERS is looking for new models of care to add to its line-up of health services provided by traditional HMOs and PPOs. The RFI asks for new ideas from health care organizations in four primary areas, including ways to optimize proposed economies or care improvements where there is a large population of CalPERS members and a well defined health care partner or network ..." (California Public Employees Retirement System)
Recent Findings on Public Attitudes Towards Patients' Rights and Managed Care (PDF)
15 pages of informative charts providing survey results. Published June 2001. (Henry J. Kaiser Family Foundation)
Privacy Regs Will Affect LTC Producers
Excerpt: "Long-term care insurance producers will face several new obstacles as a result of the privacy regulations promulgated not long ago by the Department of Health and Human Services. The regulations have been issued under terms of the Health Insurance Portability and Accountability Act." (The National Underwriter Company)
Looking to Enter Group LTC? Answer These Questions First
Excerpt: "Two developments at the federal level are likely to spur growth in the group long-term care insurance market. If so, LTC insurers will face several decisions about marketing such coverage." (The National Underwriter Company)
California Releases Report on HMO Complaints
Excerpt: "For the first time, the California government has issued a report card detailing consumer complaints against their health maintenance organizations. The report, released yesterday by the state Department of Managed Health Care, provides consumers and lawmakers with hard data on what people think about their HMOs." (New York Times Syndicate)
California Report Shows Arbitrated Disputes Usually Settled in Favor of HMOs
Excerpt: "Acting under a new consumer protection law, state regulators have sent nearly 200 disputes between HMOs and patients to an independent review board, which has ruled in favor of the health plans 65 percent of the time." (Contra Costa Times)
Major Pension and Benefits Changes Under New Tax Act
Excerpt: "While the provisions of the Act are set to expire for years beginning after December 31, 2010, the effect of this 'sunset' provision is uncertain in the benefits area." (Ernst & Young TaxCast)
Salary and Benefit Costs Associated With Acquiring Installment Contracts Are Not Deductible
Excerpt: "The Tax Court, in a reviewed decision, has ruled that an S corporation must capitalize salaries and benefits associated with purchasing and servicing long-term installment contracts. David J. Lychuk, et ux. v. Commissioner, 116 T.C. No. 27 (May 31, 2001). The court also held that professional fees and commissions related to an offering of notes must be capitalized." (Ernst & Young TaxCast)
Executive Pay: "This Stuff is Wrong"
Excerpt: "That's the conclusion of most of the insiders who talked to FORTUNE--candidly--about CEO pay. And you know what's even worse? They don't see how the overreaching can be stopped." (Fortune.com)
Employee or Independent Contractor? Improper Classification Can Plunge You Into Hot Water
Excerpt: "Many independent contractor relationships are not legally valid, a lesson that employers are learning the hard way as they face tax audits and lawsuits with potentially huge payouts." (HR Magazine)
New Supplemental Withholding Rate For Stock Option Income Effective After August 6, 2001
Excerpt: "The IRS has just released Publication 15-T, which states that the supplemental withholding rate is 27.5% for wages (e.g., income realized on the exercise of a NQSO) paid after August 6, 2001." (National Association of Stock Plan Professionals)
Newly Posted or Renewed Job Openings (Post Yours!)
| Compensation Manager (BL-SJCORP6922) | for Sony Electronics Inc. in CA, NJ |
| Employee Benefit Tax Senior Manager | for Deloitte & Touche, a Professional Services Firm in OH |
| Trust Officer/Trust Administrator | for CNA TRUST in CA |
| Retirement Plan Analyst/Pension Administration | for BAE SYSTEMS in TX |
| Benefits Analyst | for County of San Bernardino in CA |
| Health & Welfare Associate | for Aon Consulting, Inc. in MD |
Newly Posted Press Releases
| Good News From Washington! (Swerdlin & Company) |
| Joanne Swerdlin Elected to National Board for the Worldwide Employee Benefits Network (WEB) (Swerdlin & Company) |
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