| The BenefitsLink Newsletter - Welfare Plans Edition |  |
September 10, 2001 - 6,306 subscribers
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IRS Issues Guidance On Qualified Tuition Programs: Notice 2001-55
Excerpt: "[T]he Internal Revenue Service and the Treasury Department expect that the final regulations under section 529 will provide that a program does not violate section 529(b)(5) if it permits a change in the investment strategy selected for a section 529 account once per calendar year and upon a change in the designated beneficiary of the account." (Internal Revenue Service)
Leading Managed Care Plans Never Pay Retail; Time to Lift Veil of Secrecy?
Excerpt: "Large buyers such as HealthPartners, Medica and Blue Cross and Blue Shield of Minnesota have each negotiated discounts with health care providers. The plans keep their fees a trade secret and forbid providers from discussing them with anyone, including patients. Now, some doctors, employers and health care advocates say it is time to take the wraps off such discounts and other deals so costs can be analyzed and the state's large insurance companies can be held accountable." (StarTribune.com)
Legislators' Support for a Right to Sue Health Plans in Massachusetts Eroding as Economy Declines
Excerpt: "A softening economy and declining tax revenues have made some Massachusetts lawmakers 'less inclined' to support legislation allowing patients to sue their health plans, the Worcester Telegram & Gazette reports. Instead, many lawmakers now appear focused on raising the state's cigarette tax as a means to increase funding for the state's 'ailing' health care system." (KaiserNetwork.org)
Medical Malpractice Premium Hikes Add to Overall Rise in Health Costs
Excerpt: "Rising at the 'highest rate since the mid-1980s,' medical malpractice insurance premiums are adding to overall health care costs, the New York Times reports. While doctors and hospitals typically absorb additional costs associated with malpractice insurance, the Times reports that the added expenses are being 'pass[ed]' to health care insurers and patients with 'traditional' health coverage or those who pay directly for services." (KaiserNetwork.org)
Norwood Responds to Patients' Rights Amendment Criticism
Excerpt: "Rep. Charles Norwood (R-Ga.) has 'signaled second thoughts' about the deal he made with President Bush to push the patients' rights bill (HR 2653) through the House, CongressDaily/AM reports ..." (KaiserNetwork.org)
Opinion: When Privacy Kills
Excerpt: "Unnecessary deaths will almost certainly be the result of medical privacy regulations implemented in April by the Department of Health and Human Services, pursuant to the Health Insurance Portability and Accountability Act of 1996. These regulations make it a crime for health care workers to disclose 'individually identifiable health information' to a third party without the prior consent of the patient involved." (Paul K. Dueffert, Esq. via FindLaw.com)
DOL Resolves Lawsuit Against Officers of Illinois Firm Over Failure To Pay Health Care Claims
The Department of Labor has obtained a consent order that resolves its lawsuit against officers of Decatur, Ill.-based Kelly Food Products for failing to pay $81,382 in health care claims from monies forwarded for that purpose by the plan's stop-loss insurer. The consent order was entered by the U.S. District Court for the Central District of Illinois, in Herman v. Donald Schumacher, et al. (Civil Action No. CV-99-2120). (Spencernet)
Reductions In Retiree Medical Benefits Likely To Continue, According To EBRI Report
Reductions in employer-provided retiree medical benefits are likely to continue, driven by financial accounting requirements, escalating medical costs, federal court decisions, and potential legislation, according to a study recently released by the Employee Benefit Research Institute (EBRI). According to EBRI, the retiree medical cutbacks are most likely to affect future retirees, rather than current retirees. (Spencernet)
Chronic Sick-day Lies Rise as Stigma Falls by Wayside
Excerpt: "Change has been surprisingly slow to come to sick-day policies, many of which date from the 1950s. Workers and employers alike are so used to the lies that there's been no urgency to rethink this entrenched benefit. According to a recent William M. Mercer study, 50% of human resources executives polled said they have inaccurate tracking of sick days. The economic downturn may change this, as companies dig deeper for cost savings." (International Foundation of Employee Benefit Plans)
Frequent-Flier Legislation Passes Senate Committee; Federal Employees Would Get to Keep Miles Earned
Excerpt: "An amendment to the Defense authorization bill (S. 1155) allowing military personnel and federal workers to keep the frequent flier miles they earn while traveling on the government's dime, was approved by the Senate Armed Services Committee Friday." (GovExec.com)
Retailer Reaps Rewards of an Aging Workforce
Excerpt: "CVS Corp. has fulfilled a business objective to hire more mature employees by more than doubling its number of workers over age 50 in less than 10 years. More than 15% of the drug-store chain's employees are 50 or older, up from 7% in 1992.... CVS has found that mature workers are more dedicated to their work and have significantly higher retention rates than younger employees. In addition, the customer-service work of older employees is outstanding." (CareerJournal.com)
Another Question is Answered in the Stock Options, Restricted Stock and Other Long-Term Employment Incentives Q&A Column
While working for a non-publicly traded company, I received incentive stock options. The company has been acquired by a larger publicly traded company. The new owner is purchasing our 'exercised option stock' and 'vested unexercised options' at a price higher than the exercise price, and is running the proceeds through the payroll system where it is subject to income tax and FICA withholding. Isn't the gain for incentive options subject to income tax withholding only, not FICA? (BenefitsLink.com)
Newly Posted or Renewed Job Openings (Post Yours!)
| Pension Administrator/Accountant | for First Mercantile Trust Company in TN |
| Account Manager | for Benefit Plan Services, Inc. in GA |
| Testing Compliance Manager | for The 401(k) Company in TX |
| Pension Administrator/Manager | for Applied Pension Services of Suffolk, Inc. in NY |
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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.
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