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November 28, 2001 - 6,612 subscribers
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IRS Releases 2001 Version of Publication 502 (Medical and Dental Expenses)
Excerpt: "[T]here are some changes, the substance of Publication 502 has altered very little for 2001. Among the changes, several examples have been revised for clarity and to reflect updated calculations (such as for long-term care, transportation and sales of medical property)." (EBIA Weekly)
State Health Facts Online: Which States Extend Federal COBRA Protections
Excerpt: "Since the launch of State Health Facts Online - a free Internet resource from the Kaiser Family Foundation - 30 new and updated topics on state health and health policy issues have been added to the website." (The Henry J. Kaiser Family Foundation)
Death of Drunk Driver Ruled to Be Accidental
West v. Aetna Life Ins. Co. (N.D. Iowa 2001). Excerpt: "This case drew our attention because the court took a different position than most others on the question of whether death caused by drunk driving is accidental." (EBIA Weekly)
ERIC Seeks Clarification from DOL as to Applicability of New Claim Regs to Disability Plans
Excerpt: "We urge that the guidance state that claims for disability-related pension benefits are governed by the claims rules that apply to pension benefits and that the guidance be issued as soon as possible. Because the amended regulation will become effective with respect to disability claims on January 1, 2002, it is critical that the disability issue be clarified before the end of 2001." (ERISA Industry Committee)
Taxability of Long-Term Disability Benefits Addressed in Three Private Letter Rulings
Excerpt: "A significant fact relied upon by the IRS in each ruling request was that an employee's election [to use pre-tax or after-tax dollars to pay for the coverage]--which would be irrevocable--would be made each year in writing before the beginning of the plan year (eligible employees hired during the plan year would be permitted to make an election that would be irrevocable for the rest of the plan year)." (EBIA Weekly)
Economic Woes Prompt Companies to Reduce Compensation for Laid-Off Workers
Excerpt: "Payments to terminated employees dropped as much as 20 percent this year, compared with packages awarded in 1997, a July survey by Manchester Inc. found." (Fort Worth Star-Telegram via IFEBP)
Bosses Just Say No to Joining the Telecommuting Crowd
Excerpt: "56 percent of managers said they opposed telecommuting because workers needed regular supervision. Fifty-four percent said that telecommuting could create security problems and 42 percent said they thought that telecommuters often spent too much time taking care of personal business instead of doing their jobs." (New York Times; free registration required)
2002 Segal Health Plan Cost Trend Survey (PDF)
8 pages. Excerpt: "Health plan costs are projected to escalate at a dramatic rate in 2002, according to The Segal Company's annual survey of insurers, managed care organizations, pharmacy benefit managers and third party administrators. Prescription drug benefits continue to have the highest trend rates, which are expected to increase at an annual rate of nearly 20 percent in 2002." (The Segal Company)
New EBRI Research: Job-Based Benefits Increased in 2000, Uninsured Declined, But Trend May Not Last
Press release. Excerpt: "Although this occurred at a time when health insurance costs were going up much more rapidly than increases in average income, general inflation, or growth in the gross domestic product (GDP), there is only modest evidence that employers shifted costs onto workers during 2000." (PR Newswire via Excite News)
IRS Addresses Tax Effect of Retroactive Adoption of an Accident and Health Plan
Excerpt: "The IRS has issued settlement guidelines regarding the tax consequences of a retroactively-adopted self-insured accident and health plan. These guidelines hold that expenses reimbursed under an accident or health plan will not be excludable from an employee's income unless the plan was in effect when the expenses were incurred. Plans cannot be adopted retroactively after the expenses were incurred." (EBIA Weekly)
State Health Facts Online: Average Annual Cost of Health Insurance and Employee Contributions
Excerpt: "Since the launch of State Health Facts Online - a free Internet resource from the Kaiser Family Foundation - 30 new and updated topics on state health and health policy issues have been added to the website/" (The Henry J. Kaiser Family Foundation)
Care Sought for Patients Mired in HMO Disputes
Excerpt: "Contending that as many as 800,000 Californians face disruptions in their health care, Gov. Gray Davis on Tuesday renewed his call for legislation to ensure that patients' coverage continues when their doctors and health maintenance organizations have contract disputes." (Los Angeles Times)
IRS Launches "Fast Track" Dispute Resolution
The Internal Revenue Service has announced that it has launched a pilot program aimed at reducing the time it takes to resolve disputes between the agency and corporate taxpayers. According to the IRS, the 'Large and Mid-Size Business Division Fast Track Dispute Resolution Pilot Program' creates a new opportunity for corporate taxpayers to resolve outstanding tax issues early in the course of disagreements during the examination process. (Spencernet)
Newly Posted or Renewed Job Openings (Post Yours!)
| Employee Benefits Attorney | for Thompson Hine LLP in OH |
Newly Posted Press Releases
| MyBenefitSource Teams with 100 Black Men of America to Create a Mentoring Program for African-American Youth (MyBenefitSource) |
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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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