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January 8, 2003 - 8,030 subscribers
Today's sponsor: NCEO

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   Our Bookstore now carries books published by the NCEO!

   The National Center for Employee Ownership (NCEO), a nonprofit
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   broad-based employee stock plans, now has over a dozen of its
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   BenefitsLink bookstore. Topics range from employee stock
   ownership plans (ESOPs) to stock options to employee stock
   purchase plans (ESPPs).

(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay your way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)
Group and Health Coverage in the Wake of September 11 (PDF)
28 pages; Dec. 2002. Excerpt: "How would group and health coverage be affected if a suicidal terrorist detonated a bomb in a crowded area or if a 'dirty bomb' was used to spread radiation? How would the marketplace react if a biological agent were introduced into the water and food supply? This monograph examines the impact of catastrophic terrorist events on group and health coverage including medical benefits and non-medical benefits such as group life, disability, and long-term care." (American Academy of Actuaries)

Boulder, Colorado, Contemplates Genetic Discrimination Ordinance
Excerpt: "At least 47 states and one county have some form of law prohibiting genetic discrimination. Boulder is the first city to consider a comprehensive proposal covering housing and public accommodations as well as employment, according to the National League of Cities." (AP via CBSNews.com)

Negotiating COBRA Liability In Business Transactions
Excerpt: "We have received a number of questions from business lawyers and their clients regarding the responsibilities of the parties to an acquisition transaction under COBRA. What should you do if faced with such a transaction? In this article, we provide a basic approach to the of dealing with COBRA in acquisition transactions." (Chang, Ruthenberg & Long PC)

Lucent Cuts Death Benefit for Retirees
Excerpt: "In its drive to cut costs, Lucent Technologies is eliminating death benefits for up to 31,000 retirees. The loss of the death benefit, which amounts to a year's salary at the time of retirement, applies to Lucent managers who retired before Jan. 1, 1998. The change takes effect Feb. 1." (Asbury Park [N.J.] Press)

Trends in U.S. Healthcare Spending, 2001
Excerpt: "U.S. healthcare spending grew 8.7 percent to $5,035 per capita in 2001. Total public funding continued to accelerate ..." (Health Affairs)

Should Public Policy Seek To Control the Growth of Health Care Spending?
Excerpt: "Debate about whether to restrain health care spending is intensifying. Much of the debate revolves around efficient research allocation. The possible impact of cost control on the advance of medical technology merits more attention. Public and private efforts to slow growth of health spending have not enjoyed much success. Most recently, managed care failed because administrators lacked political legitimacy." (Health Affairs)

Should We Be Worried About High Real Medical Spending Growth In the United States?
Excerpt: "This paper argues that increases in medical spending growth are not necessarily causes for alarm or reasons for strong action. Especially in the private sector, increases in employers' payments for benefits should often be offset with smaller raises; whether employees' cost shares should be increased depends on a comparison of benefits and costs. Problems are more severe for public-sector spending, for the uninsured, and for those responding to distorted incentives." (Health Affairs)

Escalating Health Care Spending: Is It Desirable or Inevitable?
Excerpt: "This study analyzes changing trends in U.S. health spending and concludes that although the long-term growth trend has been a good predictor of future spending, periodic differences in the growth trend are important. Of particular concern is the rapid acceleration in health spending beginning in 1998. If left unchecked, the current growth rate will result in almost 24 percent of GDP spent on health by 2011." (Health Affairs)

Panel Proposes Key Areas for Healthcare Quality Reform
Excerpt: "A federal advisory panel on Tuesday identified 20 'priority areas' for improving healthcare quality in America. The list spans the healthcare continuum, from preventive care measures to palliative care for the dying. It also includes broad interventions, recommending 'care coordination' for the roughly 60 million Americans who live with multiple chronic conditions." (Reuters Health via Medscape; free registration required)

At the Pharmacy Counter, Generics Flex Their Muscles
Excerpt: "Generic drug usage [in 2002] hit an all-time high, according to Express Scripts, a pharmacy benefit manager, fueled by generic versions of blockbuster products and by health plans determined to swap high-priced brand-name drugs for their cheaper equivalents." (Washington Post)

Stalemate In Health Care Issues Awaits Frist's Move
Excerpt: "Frist has not been able to achieve any breakthroughs on the most controversial and costly health care issues: prescription drugs, tort reform and the patient's bill of rights to rein in abusive HMOs.... Here is an overview of some of the major health issues confronting Frist and where he has stood in the past: ..." (The [Memphis] Commercial Appeal)


Links to Items on Executive Comp, Benefits in General

DOL Solicitor General Scalia to Resign
Excerpt: "Facing a difficult confirmation battle in the Senate and the fierce opposition of union officials, Eugene Scalia has decided to leave his job as head of the legal team at the U.S. Department of Labor.... The solicitor is the Labor Department's principal legal officer and is responsible for enforcing more than 180 laws that provide basic worker protections in areas such as safety and health, minimum wages, equal employment opportunity and pension security." (Crosswalk.com)

Executive Compensation: Converging Forces of Change
Excerpt: "Few could have predicted the magnitude and number of forces that would bear down on executive compensation over the past year. The Conference Board Commission on Public Trust and Private Enterprise rightfully called the aggregated events a 'Perfect Storm.' The Sarbanes-Oxley Act, passed in July of 2002, is just the beginning." (Watson Wyatt's Insider)

Special Reporting Requirements Regarding Incentive Stock Options and Employee Stock Purchase Plans
Excerpt: "This Alert will serve as a reminder of certain year-end reporting requirements imposed with respect to incentive stock options and employee stock purchase plans." (Cooley Godward LLP)

Fact Sheet on 2002 Tax Changes For Business Taxpayers (PDF)
3 pages. Excerpt: "Self-employed taxpayers generally may deduct 70% of their 2002 medical and long-term care insurance payments for themselves and their families as an adjustment to income.... Credit for Pension Plan Start-up Costs: This new tax credit helps small businesses offset the costs of setting up and administering a new qualified employer plan and educating employees about it." (Internal Revenue Service)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Benefits Consultant
for Zurich North America
in IL

Pension Administrator (Balance Forward)
for PFPC
in MN

Pension Administrator
for Small Pension Administration firm in Atlanta area
in GA

Pension Analyst
for Coble Pension Group, L.L.C.
in AZ

Senior Plan Administrator
for JRN Benefits - Santa Barbara
in CA

Corporate Director of Benefits
for Multi-Billion-Dollar Food & Beverage Manufacturer
in CA
Newly Posted Press Releases
(Post Yours!)

Benefit Software Inc. Provides TexasBank With Online Benefit Communications
(Benefit Software Inc.)

Touchstone Investments Selects ExpertPlan for Web-based 401(k) Product
(ExpertPlan)

Can A Health Savings Card Meet The Needs Of A Growing Number Of Uninsured Americans?
(The Benefits Club)


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