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May 19, 2003 - 8,228 subscribers
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Text of IRS Ruling Clarifying Nondeductibility of Non-Prescription Drugs
Excerpt from IRS press release: 'The law limits the deduction for medicine or drugs to insulin and those drugs that require a prescription. Even when recommended by a doctor, medicines available over-the-counter are not deductible. However, this limitation does not apply to other nonprescription items, such as bandages, crutches, thermometers, or blood sugar test kits." (Internal Revenue Service)
Text of IRS Ruling Clarifying Deduction Rules for Breast Reconstruction Expenses, Laser Vision Surgery, Teeth Whitening
Excerpt from IRS press release: 'The law does not allow a deduction for cosmetic surgery or similar procedures, unless needed to correct a deformity related to an injury, disease, or congenital abnormality, to meaningfully promote the proper function of the body, or to prevent or treat illness or disease. Thus, breast reconstruction after a mastectomy or vision correction by laser surgery would be deductible expenses." (Internal Revenue Service)
Vision Correction Surgery is Deductible Medical Expense, IRS Rules
Excerpt: "A taxpayer pays a doctor to perform laser eye surgery to correct myopia. The ruling states that because the laser eye surgery is to correct defective vision and promote the proper function of the body, the cost of such surgery, including laser procedures such as LASIK and radial keratotomy, is an expense for medical care." (EBIA Weekly)
IRS Rules That Expenses Related to Obtaining an Egg Donor Are Deductible Medical Expenses
Priv. Ltr. Rul. 200318017 (Jan. 9, 2003). Excerpt: "EBIA Comment: The IRS's broad approval of the deductibility of these expenses under Code Section 213 is particularly interesting in light of earlier guidance that the medical and legal expenses incurred by a taxpayer for a surrogate mother and her unborn child would not be deductible ..." (EBIA Weekly)
IRS Website Has New Information on Health Coverage Tax Credit Created by Trade Act of 2002
Excerpt: "EBIA Comment: This new information should come as a relief to plan administrators that were concerned about having to accept partial (35 percent) premium payments from individuals claiming to be eligible for the HCTC. The IRS scheme contemplates that plans will receive premium payments for the full amount due, although we wonder whether these payments, which must be processed through an IRS payment center, will be made on a timely basis." (EBIA Weekly)
IRS Spells Out COBRA Tax Credit Procedures
Excerpt: "The IRS has added to its Web site provides details about the tax credit program for health coverage-- including COBRA coverage-- created by the Trade Adjustment Act of 2002 (TAA). Although the information is for individuals, not employers, it may prove helpful to employers curious about the administration of the TAA program." (Thompson Publishing Group)
District Court: Reducing Retiree Medical Coverage Based on Medicare Eligibility May Violate ADEA
Lawrence v. Town of Irondequoit, 246 F. Supp. 2d 150 (W.D.N.Y. 2002). Excerpt: "EBIA Comment: While it remains to be seen whether the employer will face liability in this instance, the case provides us with an opportunity to remind employers about the fluid state of the law as to whether retiree medical coverage may be reduced as a result of Medicare entitlement.... [E]ven if the EEOC changes its position, participants may still be able to bring their own ADEA lawsuits ..." (EBIA Weekly)
Northrop Grumman to Add Domestic Partner Benefits for Employees
Excerpt: "Northrop Grumman, the largest private employer in Hampton Roads, Va., plans to begin offering domestic-partner benefits next year to gay and lesbian employees and those involved in long-term heterosexual relationships." (The [Newport News, Va.] Daily Press via NewsAlert.com)
What Are the Potential Costs to Our Company of Offering a Qualified Transportation Plan?
Excerpt: "[T]here are some similarities between qualified transportation plans and health FSAs under cafeteria plans, but fortunately, the uniform coverage rule isn't one of them. As a result, qualified transportation plans involve less risk to an employer than a health FSA." (EBIA Weekly (Question of the Week))
Paid Paternity Leave More Popular Than Expected
Excerpt: "Federal law requires employers to provide up to 12 weeks of unpaid leave after the birth of a baby or adoption of a child. But at most companies, the leave isn't paid.... 30 percent of the fathers at KPMG took advantage of the [paid paternity leave] program, which also covers adoption and foster care." (The Houston Chronicle)
Exploring Options for the Uninsured
Online collection of presentations at May 19, 2003 conference. (Alliance for Health Reform)
Policy Paper: Tax Incentives for Health Insurance
Excerpt: "This paper examines the data on health insurance coverage and discusses trends in coverage. It considers the problems in the health insurance market and their implications on the nature and scope of government intervention. It uses the Urban Institute's Transfer Income Model (TRIM) to show who gains from the current tax exclusion, and examines the mismatch between current subsidy schemes and the problems in the health insurance market that an ideal subsidy might mitigate." (The Urban Institute)
Opinion: Illinois Should Mandate Coverage of Birth Control Because It Will Save Health Costs
Excerpt: "Contraceptives prevent unwanted pregnancies, which can carry a huge financial and emotional toll for women . . . and can cost their health-care providers dearly. Yet many health insurers don't provide full coverage, or any coverage, for contraceptives." (Chicago Tribune; one-time registration required)
Moderate Democrats Criticize Gephardt and Dean
Excerpt: "Leading moderate Democrats criticized two of their party's presidential candidates Thursday, even as former President Bill Clinton called for an end to intramural squabbling." (AP via The Miami Herald)
Opinion: Talking About Healthcare Reform Again
Excerpt: "Health care is back on the national agenda, and Democrats and Republicans alike are acting on a dangerously flawed premise. They are offering big plans that are based on the outdated assumption that managed care can control medical costs." (Washington Post)
Warning Signs at the High-Risk Health Pool
Excerpt: "Thirty states have high-risk pools. But that number is deceptive. The plan in Florida has been closed to new enrollment since 1991. Louisiana and Illinois have waiting lists." (New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
For CEO Pensions, Rank Has Its Privileges
Excerpt: "Other Minnesota executives also get pension credits for years they didn't serve.... Unlike executive salaries, bonuses and stock option grants, these [supplemental executive] pension perks are disclosed only deep within financial documents, and the descriptions are sketchy." (The [Minneapolis] Star Tribune)
Opinion: Political Pressure Is Reason For Proposed Rule to Expense Stock Options
Excerpt: "[T]he current debate over stock-option accounting has, in reality, almost nothing to do with preventing another Enron-esque debacle, although it has been coupled with that issue for political expediency.... Why would we deliberately choose to kick ourselves when we're down? Mandatory expensing would metaphorically do just that." (Puget Sound Business Journal via bizjournals.com; one-time registration required)
Opinion: Expensing Stock Options Creates More Accurate Financial Picture
Excerpt: "Legislation was introduced in Congress last month that would effectively delay expensing options for three years. The critics' fears, and their rationalizations against expensing options, are self-serving hogwash. Employee stock options are a legitimate expense, and a cost of doing business in today's economy." (Puget Sound Business Journal via bizjournals.com; one-time registration required)
Newly Posted or Renewed Job Openings
CLIENT COMMUNICATIONS PROFESSIONAL
for Diversified Investment Advisors
in NY
Principal, Health & Welfare Consultant- Atlanta
for Buck Consultants
in GA
Newly Posted Press Releases
(Post Yours!)
TruStar Solutions Uses HR Marketer to Increase Marketing and PR Effectiveness
(Fisher Vista)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Perry J. Schneider (Milodragovich, Dale, Steinbrenner & Binney)
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