| BenefitsLink Welfare Plans Newsletter |   |
January 27, 2003 - 7,947 subscribers
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Bring Your Welfare Benefits Plans Into ERISA Compliance ERISA Compliance for Health & Welfare Plans is an authoritative resource for employers, administrators and advisors. Written by leading employee benefits attorneys, this manual has all the information you need to bring your welfare benefit plans into compliance with ERISA. You'll also get the current eBook version of the entire manual on CD! Click above to learn more about this valuable treatise, which is always kept current through periodic updates.
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Employers Facing Strict Medical Privacy Rules
Excerpt: "Analysts say mid-sized and large employers need to be just as ready as doctors, hospitals and insurance companies to comply with federal privacy rules that go into effect this spring.... [T]he [HIPAA privacy rules] deadline also applies to companies that contract with an insurance company and pay at least $5 million in health care premiums a year as well as to companies that are self-insured and pay $5 million worth of claims annually." (Dayton Business Journal via bizjournals.com; one-time registration required)
Buyers Need Guide Through Healthcare Maze
Excerpt: "[T]he health care industry faces a sea change: It may soon become a consumer-driven business, in which the public makes choices based on quality and price, just like when they consider a new car or microwave oven. But interviews in Milwaukee's overpriced health field reveal two obstacles to that happening: Many employees don't yet have the knowledge that will let them shop and compare. And as of now, there's almost no place to get that information." (The Milwaukee Journal Sentinel)
Must COBRA Be Offered to Worker Terminated When Status as Undocumented Alien Is Discovered?
Excerpt: "COBRA's definition of 'covered employee' is not limited to legal employees. It includes all individuals who were 'provided coverage under a group health plan by virtue of the performance of services' for the plan sponsor." (EBIA Weekly (Question of the Week))
Group Dental Benefits Remain Steady
Excerpt: "Demand for dental services has never been stronger, making dental coverage a valued addition to the benefits package. What's more, the cost of these services remained relatively stable in comparison with other health benefits, and this is expected to be the case in 2003 as well." (BenefitNews.com)
Beware Hidden Pitfalls In 529 Plans
Excerpt: "One of the major pitfalls of 529 plans is how they are counted in the financial aid formula. While 529 assets are assessed at the parents 5.6% rate for financial aid, many colleges will also assess 529 withdrawals the following year as untaxed student income, which is assessed at a 50% financial aid rate. This is not disclosed in any state's 529 Prospectus." (BenefitNews.com)
Drug Sales Bring Huge Profits, and Scrutiny, to Cancer Doctors
Excerpt: "The cancer specialists can make huge sums-- often the majority of their practice revenue-- from the difference between what they pay for the drugs and what they charge insurers and government programs. But some private health insurers are now studying ways to reduce these profits, and the issue is getting close attention in Congress." (New York Times; one-time registration required)
Kaiser Permanente and Consumer Groups Agree To Landmark Public Disclosure
Press release. Excerpt: "Kaiser Permanente will post on its website the clinical guidelines developed by its physicians. These guidelines are consulted for treatment of conditions ranging from asthma to visual impairment. Kaiser Permanente will also provide information on its physician compensation structure. Both are part of a settlement ..." (The Foundation for Taxpayer & Consumer Rights)
Prescription Drug Spending Soars for U.S. Children
Excerpt: "[A] recent study by Medco Health Solutions, Inc., a major pharmacy benefits management company, found that spending on drugs for children rose 28 percent in 2001-- the biggest increase of any age group." (California HealthCare Foundation)
Executive Summary: Findings from the 2002 Small Employer Health Benefits Survey
Excerpt: "Overall, 19 percent of small employers offering health benefits made changes to their health plan between 2001 and 2002. Sixty-five percent increased deductibles and co-pays; 35 percent switched insurers; 30 percent increased the employee share of the premium; and 29 percent cut back on the scope of benefits.' Full Issue Brief available from EBRI for a fee; details at http://www.ebri.org/store/ebriib.htm (Employee Benefit Research Institute)
Employees' Health Equals Employers' Wealth
Excerpt: "Companies that offer employees excellent health insurance save money because healthier workers don't call in sick as often, says the National Committee for Quality Assurance." (New Mexico Business Weekly via bizjournals.com; one-time registration required)
Democrats to Tackle Insurance Industry and Malpractice Premiums
Excerpt: "Senate Democrats are planning to push for a curb on the insurance industry's longstanding exemption from antitrust laws, in an effort to hold down rising medical malpractice premiums." (New York Times; one-time registration required)
Democrats Retool Approach to Healthcare Reform
Excerpt: "Democrats have largely shied away from offering bold health care reform since mishandling the issue in 1994-- and losing at the polls. But lately they are reversing course, arguing that the country faces a health care crisis now." (CNN.com)
Opinion: Frist's Health Care Votes Reflect Roots
Excerpt: "In eight years in the Senate, Bill Frist has drawn on his surgical experience and free-market beliefs to establish himself as a potent spokesman for GOP views on health care. But with the Tennessee Republican's sudden ascent to the Senate majority leadership, and with the overhaul of Medicare one of the main items on the domestic policy agenda, his advocacy on health issues is coming under fresh scrutiny." (Washington Post)
Links to Items on Executive Comp, Benefits in General
IRS Publishes Quarterly Update to 2002-2003 Priority Guidance Plan (PDF)
18 pages. Additional benefits-related projects include a revenue ruling under section 411 on taking frozen accruals into account; a revenue ruling on the effect of EGTRRA on the elimination of optional forms of benefit in defined contribution plans; a revenue ruling under section 83 regarding payment for property with a note; guidance under section 419A(f)(5) on the definition of collectively bargained agreement; and a revenue ruling under section 4980B on COBRA small employer plan exception. (Internal Revenue Service)
Overview: Nonstatutory Stock Option Reporting Is No Longer Optional
Excerpt: "Employers must now report income from the exercise of nonstatutory stock options in box 12 of Form W-2. This additional reporting requirement has been optional since 2001. However, this reporting requirement is now mandatory with respect to all exercises occurring on or after January 1, 2003." (Briggs and Morgan, Professional Association)
Excerpts from New Edition of Stock Options: Beyond the Basics
The NCEO presents excerpts from the long-awaited third edition of 'Stock Options: Beyond the Basics,' which has been selected as a required text in the Certified Equity Professional (CEP) program. The book has chapters on administration, state and federal securities issues, divorce, dealing with underwater options, and other issues, plus a lengthy glossary. (National Center for Employee Ownership)
Newly Posted or Renewed Job Openings
Pension Consultant
for Qualified Benefits
in CA
Client Communications Professional
for A Retirement Benefits provider, located in Westchester County, NY
in NY
Employee Benefits Attorney
for Kilpatrick Stockton LLP
in GA
Junior Administrator
for Florida Pensions, LLC
in FL
Newly Posted Webcasts
(Post Yours!)
2003 National Health Policy Conference
on January 22, 2003
presented by AcademyHealth and Health Affairs
Newly Posted Conferences
(Post Yours!)
Cost Effective Benefits for Mid-Sized Employers
in OH
February 20, 2003
WEB (Worldwide Employee Benefits Network) - Cleveland Chapter
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