April 21, 2003 - 8,101 subscribers Today's sponsor: The BenefitsLink Newsletter (Click on company name or banner to learn more.) Find New Customers By Sponsoring the BenefitsLink Newsletter Whether your market is retirement plans or health and welfare plans, the BenefitsLink Newsletter gives you the opportunity to reach a sophisticated, target audience-- including in-house benefit administrators, HR directors, administration consultants, third-party administrators, trust officers, attorneys, accountants, investment managers and highly-paid employee-owners. Health Care Tops Taxes As Small Business Cost Drain Excerpt: "For the first time in nearly 20 years, small businesses say soaring worker health costs, not taxes, are their biggest headache. Taxes had been No. 1 since 1986." (USA Today) Must Our Plan Offer COBRA Coverage to Spouses and Dependents Who Are Dropped at Open Enrollment? Excerpt: "No. Dependents and spouses who are dropped from coverage must be provided with a HIPAA certificate of creditable coverage ... COBRA requires a plan to offer continuation coverage to qualified beneficiaries only if they lose plan coverage as a result of certain listed triggering events ... [But] administrators should exercise caution because sometimes (such as in the circumstances discussed below) dependents or spouses are dropped from coverage as the result of a triggering event ..." (EBIA Weekly (Question of the Week)) Court Says Exempt Governmental Plan May Not 'Opt In' to ERISA Coverage Michel v. United Healthcare of Louisiana, Inc. (E.D. La. 2003). Excerpt: "The defendants ... argued that the city had elected to 'opt in' to ERISA jurisdiction as a result of statements in the plan documents that the plan was governed by ERISA. [The federal district court held] that a governmental entity may not 'opt in' to ERISA jurisdiction either by stating that ERISA applies or by complying with ERISA's reporting and disclosure requirements (as the plan in this case apparently did)." (EBIA Weekly) IBM Unsuccessful in Having Short-Term Disability Claim Removed to Federal Court (PDF) 13 pages; Stern v. IBM (04/14/03, No. 02-14740, 11th Cir.) Excerpt: "Because employer's sickness/accident program is exempted by regulation from being considered a 'welfare benefits plan' under ERISA, this matter was improperly removed to federal court." (FindLaw.com) Employer, HMO Improperly Denied Coverage of COBRA Beneficiary's Hospital Expenses An employer and an HMO improperly denied coverage of a beneficiary's hospitalization expenses when the beneficiary had COBRA continuation of health care coverage. This was the decision of the Eighth Circuit U.S. Court of Appeals in Fink v. Dakotacare, et al. (No. 02-1679). (SpencerNet) For Many, Long-Term Disability Coverage May Be More Important Life Insurance Excerpt: "[T]he one traumatic event many overlook when it comes to insurance is the one that could make it difficult to maintain all the other types of coverage that leave them feeling financially secure-- the loss of income because of an injury or illness. While many people routinely buy home, auto, health and life insurance, they often forget about long-term disability insurance." (Milwaukee Journal Sentinel) IRS Publishes 2/2003 Edition of Pub. 1542, 'Per Diem Rates' (PDF) 41 pages. Excerpt: "This publication is for employers who pay a per diem allowance to employees for business travel away from home within the continental United States (CONUS), on or after October 1, 2001, and before January 1, 2004." (Internal Revenue Service) Texas Senate Passes Bill That Would Allow Insurers To Offer Excerpt: "To encourage businesses to offer some level of insurance to their employees, the Texas Senate on April 15 passed a bill (SB 541) that would allow insurers to offer 'pared-down' health policies that are not required to meet state coverage requirements, the Dallas Morning News reports." (KaiserNetwork.org) Connecticut Senate Approves Measure To Allow Medical Savings Accounts Excerpt: "The Connecticut Senate on April 15 voted 23-11 to approve legislation (SB 71) that would permit the creation of medical savings accounts, to which residents could to contribute more than $2,000 per year tax-free if the money is used to pay for health care costs, the Hartford Courant reports." (KaiserNetwork.org) Issues in Health Coverage Expansion and Design (PDF) 9 pages. Excerpt: "Anyone proposing major reforms to extend health insurance coverage to the millions of Americans who are uninsured will have to decide whether to use existing financing sources, add new ones, or substitute one single source for the diverse array of funding streams under the current system. This paper develops a framework for describing and assessing the alternative ways to finance health coverage for the uninsured." (Economic and Social Research Institute) Links to Items on Executive Comp, Benefits in General American Airlines Pulls Back Bonus Plans for Executives Excerpt: "American Airlines dropped plans ... to pay large bonuses to seven top executives if they stayed with the company until January 2005. But the carrier said it would keep money in a much-criticized trust fund set up to protect the pensions of 45 executives in case it files for bankruptcy protection." (New York Times; one-time registration required) Newly Posted or Renewed Job Openings Benefits Consulting Administrator for American Express Tax & Business Services in IL Plan Manager for Hartford Life in CT Disability Benefits Services Specialist for Wolters Kluwer Health in MD, PA Senior/Principal Administrative Analyst for UC Office of the President in CA Retirement Plan Account Executive for Alliance Benefit Group in KS, MO Client Service Consultant for Diversified Investment Advisors in NY Newly Posted Press Releases (Post Yours!) 2003 Market Outreach Campaign Unveiled to 6,000 403(b), 457 Plan Administrators (National Association of Government Defined Contribution Administrators, Inc. (NAGDCA)) Handy Links:
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