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The BenefitsLink Newsletter -
Welfare Plans Edition
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August 17, 2001 - 6,189 subscribers
Today's sponsor: The COBRA Administrator Handbook (click)

(Please help us continue to provide this valuable newsletter at no charge to you -- our sponsors pay our way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)


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Health Groups Urge Feds Not to Delay Changes to HIPAA Privacy Rules
Excerpt: "Further delays in modifying the privacy provisions of a new health care law could prove to be a big headache for the industry's [Information Technology] professionals. Last week, approximately 80 health care groups sent a letter to U.S. Department of Health and Human Services (HHS) Secretary Tommy Thompson urging him to make changes as soon as possible to the privacy rules the department finalized in April." (Computerworld.com)

The Politics of Privacy
Excerpt: "Large companies with hefty IT resources, especially in the heavily regulated financial and health care industries, aren't under particular duress because of recent legislation. But critics say existing and proposed regulations put an undue burden on small and midsize companies doing business online.... Legislative privacy requirements such as Gramm-Leach-Bliley and HIPAA are leading IT departments to invest more in data security technologies." (Computerworld.com)

Vitamins, Herbs Remain Non-Deductible Medical Expense
Week of August 13, 2001. Excerpt: "In a recently published information letter, the IRS disappointed wellness proponents when it reiterated its position that expenses for non-prescription vitamins and herbs do not qualify as deductible medical expenses under Code Section 213." (Tax Facts fx Question of the Week)

ADA Files ERISA Claim Against Managed Care Company for Failure to Pay Dentists' Actual Charges
Excerpt: "The American Dental Association (ADA) and two of its member dentists filed a class action lawsuit against Aetna, charging the giant insurer with breach of contract, trade libel and unlawful interference with the dentist-patient relationship.... [T]he complaint seeks relief under the Employee Retirement Income Security Act (ERISA) for breach of its contracts with subscribers by failing to pay non-plan providers' actual charges for professional services rendered." (American Dental Association)

New York Physicians Sue HMOs, Allege Deceptive Business Practices
Excerpt: "[Medical Society of the State of New York] General Counsel Donald Moy told Reuters Health that the physicians' group filed the litigation because the health plans systematically engaged in practices to deny medically necessary care, to bundle and reduce claims based on CPT (current procedural terminology) codes set by the AMA, and to revise payments of claims retrospectively." (Reuters via Medscape; free registration required)

Employer Adoption Assistance Programs: a Great Opportunity
Excerpt: "A tax law enacted in 1996 and expanded and made permanent in 2001 encourages employers to support employees who adopt children by allowing companies to establish adoption assistance programs that permit employees to exclude employer-reimbursed adoption expenses from their income. Here's a look at why you should consider an adoption assistance program and a little background on the law." (Strategic Finance via IFEBP)

Democrats Call G.O.P. Leader's Bluff on Patients' Bill of Rights for Federal Employees
Excerpt: "During the Senate debate, Minority Whip Don Nickles, R-Okla., proposed language that would allow federal employees the same rights as private health plan beneficiaries, including the right to take their healthcare providers to court.... Ultimately, the amendment passed the Senate by a voice vote ... As a practical matter ... Nickles and other conservatives are unlikely to push hard for the federal employee language in conference." (GovExec.com)

Medical Savings Accounts an Option for Uninsured
Excerpt: "Kay Heine counted herself among the legions of uninsured Americans until she discovered one of the best-kept secrets in health care: medical savings accounts. The accounts, known as MSAs, combine health insurance and a tax-free savings plan and are available to self-employed workers and employees of some small businesses." (Los Angeles Times)

California Agency Acting as Referee in Disputes Between Patients, HMOs
Excerpt: "[T]he most important element in the congressional debate 'is securing the right to a second opinion about your case,' said Sara Rosenbaum, a professor of health law and policy at George Washington University in Washington, D.C. -- A little more than a year ago, the California legislature established the Department of Managed Health Care to do just that." (Los Angeles Times)

Opinion: Fix Proximate Cause "Mistake" in Patients' Rights Bill
Excerpt: "Last week, Norwood admitted that one provision--a tiny but hugely significant change in wording, from 'a' to 'the,' made when no patient advocates were looking--was 'a mistake' that he would be 'glad to correct.' To win damages under the stronger Senate bill, a plaintiff must show that a health plan's negligence was 'a proximate cause' of personal injury or death. But under Norwood's bill, the plaintiff must show that such negligence was ' the proximate cause' of injury or death." (Los Angeles Times)

HHS Delays New Medicaid HMO Patient Protections
Excerpt: "The action halts rules that were issued just before President Bill Clinton left office and that were scheduled to take effect early last spring. The rules would have promised nearly 20 million people on Medicaid many of the same rights Congress is trying to grant patients in managed care." (Washington Post)

(Following items are in both editions of the BenefitsLink Newsletter)


Two New Designations Available Now Through CEBS
Excerpt: "The CEBS® program now offers candidates the opportunity to earn two new designations: Group Benefits Associate (GBA) and Retirement Plans Associate (RPA).... Each new designation requires completion of four courses within the CEBS curriculum. Like the CEBS designation, the GBA and RPA designations are awarded by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania." (International Foundation of Employee Benefit Plans)




Newly Posted or Renewed Job Openings (Post Yours!)
Retirement Plan Administrator for M.L. Kerns & Associates, Inc.
in TX
Benefits Communication Specialist for Veritude, A Fidelity Investments Company
in MA



Newly Posted Press Releases
SunGard Corbel Offers Self-Funded Health Plan Amendment Package (SunGard Corbel)

Subscribe to the Retirement Plans Edition, too (click)


Copyright 2001 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.