| The BenefitsLink Newsletter - Welfare Plans Edition |  |
June 20, 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!
Health Insurance Association Calls McCain-Kennedy Bill a "Pot of Gold for Trial Attorneys"
This link to the online media kit includes a 45-page white paper prepared by the law firm of Shook, Hardy & Bacon L.L.P. and a 40-page chart of existing damages remedies under state medical malpractice laws. (Health Insurance Association of America)
Evolving Trends in Personalized and Online Communication
Excerpt: "This issue of Forum focuses on the evolving strategies of employers when they communicate benefits-related information. For example, what topics do they communicate, what media do they favor, and what reasons do they cite for their choices? Perhaps most important, how can effective communication help bind together a diverse workforce in a changing world?" (Aon)
HIPAA Regulations Guide Court in Ordering Patient Privacy Notice
Excerpt: "Individual privacy rights and the rights of individuals to control confidential medical information as set out in privacy rules under [HIPAA] essentially were upheld by a federal district court ... [T]he court said that a hospital may be required to turn over patient pharmacy records subject to government subpoena in a federal criminal action, but only after the patients have been given notice of their right to object to disclosure of the information." (Thompson Publishing Group)
Class Action Lawsuit Brought Against Washington State by Retired Police, Firefighters
Press release. Excerpt: "The Washington State Senate's passage of a bill providing funding for the proposed budget for the 2001-03 biennium brought swift action today in the form of a class-action lawsuit filed by a group of retired police officers and firefighters. The suit claims the lawmakers balanced the budget by illegally raiding a police officers' and firefighters' pension plan." (Business Wire)
Office of Personnel Management Encourages Telecommuting for Federal Employees
Excerpt: "A new study from the Office of Personnel Management cites 13 cases of happy government telecommuters in the hopes of encouraging more managers and employees to initiate and participate in telecommuting programs." (GovExec.com)
Sun Tweaks Its July Days-off Plan
Excerpt: "Sun Microsystems told salaried California employees that they would not be required to take the first week of July off -- although they are being encouraged to take the days off as part of a plan to save the company money.... [O]n Tuesday Sun made the time off voluntary for some workers in response to a recent interpretation of a state labor law that threw into question whether companies could send salaried workers home and dock their pay." (SiliconValley.com)
Assessing the Value of Work Benefits
Excerpt: "While it's a common business practice that every expenditure is carefully scrutinized, in 1999 only 5 percent of more than 1,000 employers told WorldatWork, formerly the American Compensation Association, and The Segal Co. that they link work/life programs to measures of employee productivity, company profitability or customer satisfaction." (Chicago Tribune)
Health Coverage Is Going To the Dogs -- and Cats, Too
Excerpt: "AT&T isn't usually out in front of the corporate culture curve. So when Ma Bell offers health benefits not only for workers' families but also for their pets, something must be up." (Washington Post)
More Choice Coming To Your Health Insurance Plan?
Excerpt: "Local [Cincinnati] firms, including market leaders Anthem and Humana/ChoiceCare, are rolling out new plans that put much more choice -- and costs -- in the hands of local consumers. Workers have desperately wanted more choice in their health plans since managed care took over the Tri-State market in the early 1990s. But until now, companies were reluctant to raise employee contributions to cover that added choice, for fear of losing workers to other firms." (Cincinnati Business Courier)
Editorial Pages Debate Patients' Rights Bills
Excerpt: "With the Senate preparing to debate patients' rights legislation (S 283) sponsored by Sens. John McCain (R-Ariz.), Edward Kennedy (D-Mass.) and John Edwards (D-N.C.), a number of editorial and op-ed pages across the nation have addressed the issue." (KaiserNetwork.org)
Several Key Patients' Rights Players Have Medical Backgrounds
Excerpt: "Several key players in the patients' rights debate in Congress are health care providers. The following is a look at these members of Congress and their medical backgrounds, compiled by the Kaiser Daily Health Policy Report ..." (KaiserNetwork.org)
Opinion: Veto of Texas Health Care Bills by Governor Leaves Consumers High and Dry
Excerpt: "Just as Congress turns its eyes this week on putting protections in place for more than 170 million Americans with private health insurance, Gov. Rick Perry vetoed bills that would help Texas health care consumers better understand the rights given to them under Texas laws, Consumers Union said [on June 18.] HB 2430 created a consumer advocate to help consumers, both insured and uninsured, with health care insurance questions, advice and complaints." (Consumers Union)
Opinion: Possible Health Insurance Deduction Amendment To Patients' Rights Bill Offers Little Help
Excerpt: "When the Senate considers the Patients' Bill of Rights this week, a floor amendment may be offered that would establish a new tax deduction for health insurance premiums. Supporters of a deduction are likely to argue that it would address the problem of the uninsured by making health insurance more affordable. Analysis shows, however, that such a deduction constitutes a poorly targeted and expensive way to help a tiny portion of the uninsured obtain coverage." (Center on Budget and Policy Priorities)
Health Plans Association Publishes White Paper on McCain-Kennedy HMO Bill
Excerpt: "Myth: 'Kennedy-McCain is a compromise bill that represents the product of four years of negotiations.' Reality: Not true. Kennedy-McCain is simply a 'compromise' among those who think that courts are the best place to resolve disputes. In fact, each successive iteration of this so-called compromise has gotten worse over the past four years-- each version is loaded with more liability for doctors, hospitals, employers, and health plans than the version before." (American Association of Health Plans)
American Benefits Council Releases Second White Paper on Employer Liability Under McCain HMO Bill (PDF)
Excerpt: "The American Benefits Council today released a paper discussing how the Kennedy-McCain bill to be considered this week will leave employers wide open to new federal personal injury suits. Employers could be sued based on alleged errors in plan administration decisions covering a number of specific scenarios." (American Benefits Council)
Prescriptions Could Cost Workers $50
Excerpt: "Workers with health insurance could end up paying as much as $50 per prescription under a plan being shopped to employers as a way to help curb spiraling drug spending. If the idea catches on -- and critics say it may be too confusing and irritating to patients -- it could reduce the amount employers pay for prescription drugs by shifting more of the cost to consumers." (USA Today)
Patients' Rights Debate Opens on Angry Note
Excerpt: "The Senate struggle over patients' rights legislation opened on an angry, confrontational note yesterday as Republicans delayed action on the bill and Majority Leader Thomas A. Daschle (D-S.D.) vowed to keep the Senate in session through its July 4 recess to finish the measure." (Washington Post)
Opinion: Parties Work Together for HMO Reform
Excerpt: "Regardless of the differing opinions of these two bills, what is truly remarkable is that this country is now witnessing a bipartisan attempt to remedy one of this countries biggest problems: medical treatment by apathetic insurance companies and HMOs. For the Republican minority leader to rally support for a Democratic bill in a Senate narrowly divided by a majority of one, many eyes will be raised to see what is going to happen in the political whirlwind that is Washington, D.C." (The Daily Mississippian)
Michigan Families Tell of HMO Woes As Senate Debates Bill
Excerpt: "As the Senate debates the Patients' Bill of Rights, which would let patients sue their health care plans for denial of service, the Lukers want Congress to remember their daughter, Jessica Baccus, who died in 1999 at the age of 24 after her health care provider denied her continued access to her neurologist. 'This is America,' Patricia Luker said. 'We are entitled to a Patients Bill of Rights. Where is the due process?'" (The Detroit News)
AMA Calls for Swift Passage of McCain-Edwards Bill
Press release. Excerpt: "Today, as Senate action begins on patients' rights, the American Medical Association (AMA) calls for swift passage of a strong patients' bill of rights and reiterated its strong support for the bipartisan McCain/Edwards bill." (PR Newswire)
Debate Over Patients' Rights Could Logjam Congress Until July
Excerpt: "Debate over legislation that would expand the control people have over their managed health plans got off to a testy start Tuesday in the Senate, with Republicans pressing for delay and Democrats vowing to work through the weeklong July Fourth recess if necessary. Full Senate floor debate might not begin until Thursday, and could extend into July." (Knight Ridder/Tribune)
Senate Begins Debate on Patients' Rights
Excerpt: "The Senate plunged into debate Tuesday on long-delayed legislation to combat HMO horror stories and descended instantly into partisan struggle. Republicans sought to slow action and Majority Leader Tom Daschle vowed to 'stay on this bill for whatever length it takes.'" (Associated Press)
Patients' Rights Bill Worry Employers
Excerpt: "The nation's employers, who provide 80 percent of the health insurance to workers, are worried patients' rights legislation will draw them into a web of lawsuits - one of many issues clouding an expected long debate in the Senate over the rights of Americans to have more control over their health care." (Associated Press)
Senate Debates Measure on Patients' Rights
Excerpt: "The Senate began debate today on a far- reaching bill to define patients' rights, but Republicans resisted swift action on the measure, saying they needed more time to study it. Senator Tom Daschle, the South Dakota Democrat who is the new majority leader, promptly threatened to cancel a scheduled weeklong recess if Republicans blocked action on the legislation ..." (New York Times; free registration required)
IRS Finalizes Section 420 Regulation on DB Plan Transfers to Health Accounts
Excerpt: "Pursuant to section 420(c)(3)(E), these regulations provide that an employer who significantly reduces retiree health coverage during the cost maintenance period does not satisfy the minimum cost requirement of section 420(c)(3). In addition, these regulations clarify the circumstances under which an employer is considered to have significantly reduced retiree health coverage during the cost maintenance period." (Internal Revenue Service)
Just Published: 2001 Edition of the Guide to the Form 5500 Series (for 2000 Plan Years)
Excerpt: "Featured topics of the Guide include: revamped filing requirements under the ERISA Filing Acceptance System (EFAST) including the form EFAST-1; changes in the form, schedules and instructions for 2000; guidance on how and when to use attachments to the schedules; definition and meaning of 'direct filing entities'; using plan characteristics codes; the list of insurance company codes issued by the National Association of Insurance Commissioners (now required instead of SIC codes) ..." (Thompson Publishing Group)
DOL Sponsors 21st Century Workforce Summit -- Live Webcast Available Today
Excerpt: "Join business, labor, academics, government leaders, and other interested parties from across the country in Washington, D.C. on June 20, 2001 for the first Summit on the 21st Century Workforce. 'The new office's first responsibility will be to hold a Summit on the 21st Century Workforce this spring, where we will call on leaders from business, labor unions, government and elsewhere to address the structural changes that are affecting our workforce and our economy.' - Elaine L. Chao." (U.S. Department of Labor)
Employment Benefits Employment Law and Estate Planning Update For Spring 2001 (PDF)
This issue contains articles on Estate Planning Incentives, IRS Interim guidance on Taxation of Equity Split Dollar Life Insurance, 2001 Guidance, DOL's Pension and Welfare Benefit Administration Guidance on Payment of Employee benefit Plan Expenses, & The Tenth Annual Employee Benefits Conference. (Sanders, Schnabel & Brandenburg, P.C.)
The Inside Scoop on Top Consulting Firms
Companies making the Journal's top 10 list include Hewitt Associates, Deloitte Consulting and Andersen; also praised were Watson Wyatt, RSM McGladrey and Milliman USA. Excerpt: "Employers were scored on 12 attributes, measuring how satisfied their consultants were with: compensation levels, benefits, leadership skills among managers, work/life balance, vacation time, mentoring programs ..." (CareerJournal.com)
"Options Only" Stock Plans: What the New Proxy Statements Reveal
Excerpt: "[We have] examined ways that 'options only' companies-- companies which granted stock options but did not award full value grants, principally restricted stock and performance shares, prior to last year-- have revised their long term incentive programs to lessen the negative impact of underwater options. This month, we focus on how companies in our study group are ... authorizing additional shares for new option grants and amending their programs to include full value grants." (Aon)
Newly Posted or Renewed Job Openings (Post Yours!)
| Conversion Project Manager | for Marshall & Ilsley Corporation in WI |
| Pension Department Manager | for Taft-Hartley Multi-employer Pension Benefit Fund in CA |
| Employer Contribution Accounts Department Manager | for Taft-Hartley Multi-employer Pension Benefit Fund in CA |
| Mid-Level Actuary | for Watson Wyatt Worldwide in MI |
| Retirement Plans Coordinator | for Independent Benefit Services in MD |
| Specialist -Actuarial Services - Pension Plans | for American Home Products Corporation in NJ |
| Account Manager | for CallConnect Communications in CO |
| 401(k) Pension Administrator | for Kibble & Prentice, Inc. in WA |
| 401(k) Administrator | for Redwood Administrators, Inc. in NJ |
Newly Posted Conferences (Post Yours!)
| Healthcare Cost Savings: From Rhetoric to Reality | in NY on July 19, 2001 presented by New York Metropolitan Area Chapter of ISCEBS |
Newly Posted Press Releases
| InvestLink Releases Online Retirement Plan Access Software for Plan Sponsors (InvestLink) |
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