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June 3, 2003 - 8,264 subscribers
Today's sponsor: The COBRA Administrator Handbook
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HIPAA Aspects of Wireless Technology Use by Healthcare Providers: No Rest for the Wary
Excerpt: "To take advantage of the cost savings and convenience that portable devices offer, many hospitals and other health care entities have equipped doctors, nurses and other staff with wireless-enabled laptops, personal digital assistants and other wireless devices. Unfortunately, the network security features used in the most common wireless network products, those based on 802.11b standards, do not meet HIPAA's stringent security requirements." (Davis Wright Tremaine LLP)
Overview: New Tax Law Increases Child Tax Credit for 2003, Lowers Income Tax Rates
Excerpt: "The effect of the accelerated tax reductions will mean reduction in income tax, but also a corresponding reduction in the amount of pre-tax savings under salary reduction programs (e.g., a cafeteria plan). Also, JGTRRA's increase in the Child Tax Credit may affect employees' decisions about participating in a DCAP versus claiming the Dependent Care Tax Credit in 2004." (EBIA Weekly)
Overview: IRS Issues New Guidance on Deductible Medical Expenses (PDF)
Excerpt: "Employers that sponsor FSAs or HRAs must reimburse qualifying medical expenses if the plan document simply provides that any expense that is deductible is eligible for reimbursement. Sponsors of plans that specifically list the expenses eligible for reimbursement should decide whether to add the expenses discussed above to the list of reimbursable medical expenses." (Milliman USA)
Group Continues to Press for COBRA Subsidy for Out-of-Work Performers in New York State
Excerpt: "The Entertainment Industry Health Insurance Coalition -- which includes the performers unions, such as Actors' Equity Association, the Screen Actors Guild (SAG), and the American Federation of Television and Radio Artists (AFTRA) -- has begun implementing its plan of blitzing key legislators with communications supporting the New York State COBRA subsidy bill." (Backstage.com)
Proposed COBRA Regs Warn Administrators to Stop Using Old Model Notice Immediately, Update SPDs
Excerpt: "[T]he preamble states administrators should stop using the model general COBRA notice the Department provided in ERISA Technical Release 86-2 (June 26, 1986) immediately because it no longer represents good faith compliance with the general COBRA notice requirement.... [T]he Labor Department is now taking the position that group health plan [SPDs] should include information about the new health insurance tax credit for trade-displaced workers ..." (Deloitte & Touche Human Capital Advisory Services)
Overview: Proposed Regs Make Sweeping Changes to COBRA's Notice Requirements; New Notices Required
Excerpt: "Almost 17 years after COBRA's enactment, the DOL has issued proposed regulations regarding the various notices and disclosures required in connection with COBRA administration. In these new regulations, which are proposed to become effective in their final form for plan years beginning in 2004 ..." (EBIA Weekly)
Supreme Court Won't Hear Veterans' Benefits Case Seeking Free Lifetime Health Benefits
Excerpt: "The Supreme Court ended a legal battle by battalions of aging World War II and Korea retirees yesterday, leaving them without the lifetime free medical care recruiters promised them when they signed up. Without comment on the merits, justices refused to consider overturning last year's decision against the veterans by the full Federal Circuit Court of Appeals, which was sympathetic and advised the veterans to seek help in Congress." (Washington Times)
Overview: U.S. Supreme Court Holds That Individuals May Sue States for FMLA Violations
Nevada Dept. of Human Resource v. Hibbs (S. Ct. 2003). Excerpt: " We also remind readers that political subdivisions of states (e.g., counties, cities, and school districts) generally are not immune from individual lawsuits, because the Eleventh Amendment does not apply to them (the determination of when an employer is a political subdivision typically is made under state law)." (EBIA Weekly)
State Law Claims OK'ed to Enforce Former Employer's Alleged Oral Promise of Severance Pay
Eide v. Grey Fox Tech. Services Corp. (8th Cir. 2003). Excerpt: "Given ERISA's requirement that ERISA plans be in writing, it is notoriously difficult to enforce informal representations about ERISA benefits ... The only loophole appears to be in situations where the informal representation does not conflict with the terms of a written ERISA plan. The key to this decision was the court's finding that the employees were not participants in the formal severance plan ..." (EBIA Weekly)
Overview: Treating Physician Rule Does Not Apply to ERISA Disability Claims
Excerpt: "Plan administrators can heave a sigh of relief as a result of the Court's decision. Had the decision gone the other way, the costs of administering disability plans would likely have increased, given the increased medical support that would be necessary to counter a treating physician's opinion. In addition, it would have been more difficult for a plan to support a decision to deny or terminate a disability claim." (EBIA Weekly)
Associated Press to Provide Healthcare Coverage to Employees' Domestic Partners
Excerpt: "The Associated Press and the News Media Guild reached tentative agreement Monday on a new three-year labor contract covering about 1,700 editorial employees of the news service, ending nearly nine months of negotiations." (1010wins.com)
Wall Street Journal Reporters Wins Social Justice Prize for Article on 'Dead Peasant' COLI Programs
Press release. Excerpt: "The Hillman Foundation today announced the winners of the 2003 Sidney Hillman Prize, honoring journalism (print and broadcast) and non-fiction writing that investigates issues related to social justice and progressive public policy ... Newspaper Award: 'Valued Employees: Worker Dies, Firm Profits' by Ellen Schultz & Theo Francis (Wall Street Journal)." (The Hillman Foundation via NewsAlert.com)
Restaurateur Considers Tabling Health Benefits for Employees
Excerpt: "Prentice, president and owner of Unique Restaurant Corporation, has become Detroit's peerless culinary celebrity in part by attracting the best managers, waiters, busboys, and bartenders to work for him. The company, with $40 million in annual revenue, attracts such talent by providing excellent benefits. But with the auto industry slumping and health care costs soaring, Prentice recently found himself considering the once unthinkable: dropping employee health care coverage." (Inc. Magazine)
Employers Leading the Charge to Control Health Care Costs
Excerpt: "A report ... by competitive intelligence firm Provizio says that U.S. employers are leading the charge to control rising health care insurance costs, with or without support from their health plan vendors.... [E]mployers believe that health plans are not doing enough to lower health care insurance costs. The report ... concludes that employers are looking to innovative initiatives in order to control health insurance costs, and are not afraid to spend money for long-term savings." (SmartPros)
PhRMA To Increase Lobbying Spending to at Least $150M
Excerpt: "The Pharmaceutical Research and Manufacturers of America ... is increasing spending 23% from last year to at least $150 million for fiscal year 2003-2004 as it steps up efforts to lobby Congress and state legislatures, oppose price controls worldwide, help fund 'like-minded organizations,' influence the debate over providing prescription drug benefits to the elderly and pay economists to write op-ed pieces in response to criticism, the New York Times reports." (KaiserNetwork.org)
Opinion: Why Incremental Reforms Will Not Solve the Health Care Crisis
Excerpt: "The Clinton administration's effort to enact comprehensive reform was such a spectacular failure that most reform advocates decided that a single step to universal coverage was not politically feasible. Since then, almost all policy strategists agree that reform must occur in incremental steps, ultimately culminating in universal or near-universal coverage.... [W]e should readdress the issue of whether the discussion of reform should be limited to incremental proposals." (The Journal of the American Board of Family Practice)
Tax Subsidies for Private Health Insurance: Who Benefits and What Are the Policy Implications?
Excerpt: "Policy-makers are considering a variety of new tax credit proposals to expand health insurance coverage. Understanding how current tax subsidies work and their role in supporting employer-sponsored insurance (ESI) is important when designing such policies. This brief presents essential information about the structure and distribution of existing tax subsidies for ESI and the implications for new policy options." (The Robert Wood Johnson Foundation)
Newly Posted or Renewed Job Openings
Senior Benefit Systems Analyst
for Towers Perrin
in NJ, PA
Plan Administrator
for weaver partners, inc.
in ALL STATES
New Fellow or Associate Actuary
for Milliman USA
in CO
Health and Welfare Consultant / Underwriter
for PricewaterhouseCoopers
in MA
Manager, Retirement Benefits Administration
for Aerojet
in CA
Regional Director, ES-1801
for U.S. Department of Labor, Employee Benefits Security Administration
in MO
Senior Benefits Specialist (Retirement Plans focus)
for recruitingmanager.com, Inc. for a $4+ Billion Fortune 500 Company in S. CA
in CA
Trust/EB Administrator
for Glenview State Bank
in IL
Health and Welfare Benefits Consultant
for TSA
in CA, CT, DC, DE, GA, IL, IN, MA, MD, MI, MN, NJ, NY, OH, PA, TX, WI
Sr. Manager Benefits/Health & Welfare
for Ernst & Young
in MA, MI
Retirement Actuarial Associates - Atlanta
for PricewaterhouseCoopers
in GA
401(k) Plan Administrator
for Pension Resources, Inc.
in PA
Newly Posted Conferences
(Post Yours!)
A Review of Consumer-Drive Health Plans
in FL
June 25, 2003
Orlando Chapter of ISCEBS
Newly Posted Press Releases
(Post Yours!)
Federal Pension Insurer Protects Benefits of 8,000 at Consolidated Freightways
(Pension Benefit Guaranty Corporation)
PlanMember Services Corporation Partners with Colonial Trust Company
(PlanMember Services Corporation)
Peter Newkirk Receives “Impact Player of the Year” Lifetime Achievement Award
(Newkirk)
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