November 1, 2001 - 6,491 subscribers Today's sponsor: The ERISA Health and Welfare Handbook: Questions and Answers on ERISA Compliance (Click on company name or banner to learn more.) This important book offers guidance on more than 30 key issues involving ERISA and employee welfare plans, including benefits entitlement, HIPAA, plan document language, discrimination issues and employer obligations under managed care plans. Written by veteran benefits consultant Terry Humo, Esq. of Intermountain Administrators. (Help BenefitsLink to provide this 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) Senate Backs Boost In Mental Health Coverage Excerpt: "The bill would not, however, require any plan to cover mental illness; it would apply only if a plan already provided coverage for mental-health benefits. The bill exempts small businesses with 50 or fewer employees, and would not take effect until 2003." (The [Philadelphia] Inquirer) Senate Passes Mental Health Parity Bill Excerpt: "The Senate by voice vote Tuesday night passed a sweeping measure that would, starting in 2003, require parity between health insurance benefits for mental health care and other medical care. The bill was added as an amendment to the $407 billion fiscal 2002 spending bill for the departments of Labor, Health and Human Services, and Education." (Medscape; free registration required) HMO Settles Suit in Minnesota, Will Allow Outside Reviews of Mental Health Coverage Denials Excerpt: "HealthPartners said Wednesday that it will allow an outside panel to review all its denials of mental health care, under an agreement it reached with Minnesota Attorney General Mike Hatch." (StarTribune.com) No Liability for Failure to Tell Employee of Actively-At-Work Clause in New Life Insurance Program Ostler v. Oce'-Usa, Inc. (N.D. Ill. 2001). Excerpt: "In the early stages, an employer will typically publicize a new program by distributing benefit summaries and holding informational meetings. But employers are often not aware of the fine print in the insurance contract, so important conditions and limitations may be omitted or misconstrued causing employees to enroll for non-existent coverage.' (EBIA Weekly) (EBIA Weekly) Medical Evidence Demonstrated Employee's Eligibility For Disability Benefits, Court Rules A company improperly denied a former employee's claim for disability benefits under the company's pension plan because the medical evidence 'clearly demonstrated' that the employee was eligible for disability benefits. This was the ruling of the Third Circuit U.S. Court of Appeals in Skretvedt v. E.I. DuPont de Nemours and Company, et al. (No. 00-2918). (Spencernet) Plan Would Ban Same-sex Benefits for Houston City Employees Excerpt: "In the city that gave anti-gay forces one of their biggest victories ever in 1985, voters will decide on Nov. 6 whether to ban dependent benefits for same-sex domestic partners of municipal employees." (Dallas Morning News) Study Looks at Absence of Referrals by Doctors Excerpt: "When people in health maintenance organizations are allowed to see specialists whenever they want to, without being referred by a primary care physician, they do not flock to the specialists' offices, a new study has found." (New York Times; free registration required) Physician Referral Process May Not Cut Costs Excerpt: "Requiring patients to obtain referrals from their primary care physician instead of allowing them to go directly to a specialist is thought to cut down on unnecessary costs and better coordinate care. Yet, new study findings show no increase in costs or unnecessary services when such gatekeeping systems are eliminated." (Reuters Health via Excite News) Expect Double-digit Jump In Health Care Costs In 2002, Survey Says Excerpt: "Trend rates' for HMO and PPO products are up 26 percent and 19 percent respectively, according to 'Health Care Cost Trend Survey, 2002' [from Andersen Consulting]." (insure.com) New York Insurers Agree to Provide More Information When Denying Medical Necessity Claims Excerpt: "The agreements come after a two-year investigation ... and will affect more than 7.5 million New Yorkers." (insure.com) North Carolina Adopts Strong Patients' Rights Bill Excerpt: "'It's like winning the World Series,' says North Carolina patient advocate Adam Searing of his state's new law that gives consumers the right to sue their HMOs for failing to make proper treatment decisions. The new law also mandates coverage for patients participating in eligible clinical trials and requires HMOs to establish independent reviews for consumers to dispute HMO treatment denials." (insure.com) House-Passed Bill Would Make Long-Term Care Insurance Tax-Free for Federal Employees Excerpt: "Federal employees' long-term care insurance would be free from state and local taxes under a bill passed by the House on Tuesday. The bill, H.R. 2559, would make the long-term care insurance program more affordable for federal employees when it debuts in October 2002." (GovExec.com) Employees Adjust to Life in Post-Attack Workplace Excerpt: "As terrorism fears become a fixture of American life, managers are frustrated and confused over where to draw the line against employees' worries and get back to business, readers' mail shows." (CareerJournal.com) Newly Posted or Renewed Job Openings (Post Yours!)
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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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