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July 1, 2003 - 8,349 subscribers
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IRS Revenue Ruling Applies COBRA 'Small Plan Exception' to Asset Purchase, Stock Purchase Scenarios
Excerpt: "In Situation 1, a group health plan maintained by the combined entity ceases to be excepted from COBRA as a small-employer plan as of the date of the stock transfer. In Situation 2, a group health plan maintained by the acquiring company continues to be excepted from COBRA as a small-employer plan for at least the remainder of the year of the asset acquisition." (Internal Revenue Service)
Technical Explanation of House-Passed H.R. 2596 Authorizing Health Savings Accounts (PDF)
17 pages; June 30, 2003. (U.S. Congress, Joint Committee on Taxation)
Health Insurance Companies Lobby for Changes in Medicare Drug Legislation
Excerpt: "Private health insurance plans began lobbying Congress today for major changes in the Medicare drug legislation passed just three days ago. Without increased subsidies and more stability, they said, few private plans will enter the Medicare market, and the legislation will not work as intended." (New York Times; one-time registration required)
Medicare Bills Offer Drug Subsidies
Excerpt: "Bills passed by the House and the Senate at week's end offer the first Medicare subsidies for drugs taken outside the hospital. They also would change Medicare to give older people more choices and hold down costs for a program forecast to go broke." (AP via the Washington Post)
Opinion: What's Right and Wrong About the Senate Medicare Bill (PDF)
Transcript of June 20, 2003 panel discussion. Excerpt: "Ted Kennedy ... has said about this legislation: It's pretty good and he supports it. On the other hand, he said, 'In fact, if you think that Medicare should be privatized, then you should oppose this bill.' I think that's a pretty good analysis." (The Cato Institute)
Medicare Prescription Drug Plan: If It Becomes Law, Will It Work?
Excerpt: "[H]ealth policy analysts say that, even if the House and the Senate are able to resolve differences between their bills, it is far from certain the plan would work." (Washington Post)
Legislation Introduced to Enhance Tax Incentives for Long-Term Care Insurance
Excerpt: "Bipartisan legislation introduced in both the House and Senate would authorize employers to offer long-term care insurance as a benefit under their IRC section 125 cafeteria plans, and create other tax incentives for individuals to purchase long-term care insurance." (Deloitte & Touche Human Capital Advisory Services)
3d Circuit: No Generally-Applicable Duty to Disclose Financial Incentives Paid to HMO Physicians
Horvath v. Keystone Health Plan East, Inc. (3d Cir. 2003). Excerpt: "To control costs, many health insurers and HMOs use incentive payments to participating physicians (e.g., bonus payments that increase or decrease based on the number of special tests, treatments or referrals ordered). Must these incentives be disclosed to ERISA health plan participants or beneficiaries?" (EBIA Weekly)
Disclosure to One Person Makes EMT Liable for 'Invasion of Privacy' Under Wisconsin State Law
Excerpt: "A state-law 'invasion of privacy' verdict against an emergency medical technician (EMT) who disclosed a patient's medical information to one of the patient's coworkers was upheld by a Wisconsin appeals court. Sufficient evidence existed to support the jury's finding that the patient had a 'special relationship' with her fellow employees, so that disclosure to even one of them would embarrass her, the court explained." (Thompson Publishing Group)
Union Lawsuit Heralds Changes to PBM Industry, But Not All Employers Complaining
Excerpt: "A California union has filed suit against the four leading PBMs, alleging that several of the most widespread PBM practices do not serve the best interests of the clients they represent.... The specific actions that the suit alleges to be unfair involve amounts of money that PBMs ostensibly receive from pharmaceutical manufacturers and do not disclose to clients." (Drug Cost Management Report via AISHealth.com)
Small Business Owners Cope with Employees' Vacation Time
Excerpt: "The arrival of summer brings a new source of angst for some small business owners: their employees' vacations. Company owners know that workers need vacations, but some give the time off only grudgingly." (AP via FindLaw.com)
Michigan Legislature Passes Bill To Cap Premiums for Small Business When Employees Become Sick
Excerpt: "The Michigan Legislature on June 26 passed a bill (SB 234) that would limit the amount insurance companies can raise health plan premiums for small businesses when their employees become sick, the Detroit News reports." (KaiserNetwork.org)
Links to Items on Executive Comp, Benefits in General
SEC Requires Shareholders Be Given Vote on Stock Option Plans
Excerpt: "Publicly traded companies will have to ask shareholders to approve stock option compensation plans for their executives and employees under a long-awaited ruling approved yesterday by the Securities and Exchange Commission. Under the former rules, companies did not need to seek shareholder approval for broad-based compensation plans, an exemption that critics said allowed firms to hide the extent and cost of executive compensation." (Washington Post)
IRS Nixes Use of Qualified Retirement Plan Distributions to Fund Medical Expenses on a Pre-Tax Basis
Excerpt: "In this ruling, the IRS dealt with a method of funding retiree medical coverage that is known as a 'pension reduction plan' or a 'cafeteria plan/qualified retirement plan hybrid arrangement.' Under this type of arrangement, retirees fund their medical coverage through a cafeteria plan using qualified retirement plan distributions, with the objective of paying for medical coverage on a pre-tax basis." (EBIA Weekly)
Failure to Maintain Adequate Records of Expenses Reported on Form 5500 Is ERISA Fiduciary Breach
Shaver v. Operating Eng. Local 428 Pension Trust Fund (9th Cir. 2003). Excerpt: "This decision from the Ninth Circuit illustrates the possible consequences of failing to follow ERISA's recordkeeping requirements. The dispute arose when an ERISA pension plan refused to provide information to a requesting participant about amounts listed on the plan's Form 5500, Schedule C." (EBIA Weekly)
Newly Posted or Renewed Job Openings
Retirement Plan Sales
for Channel Synergy... recruiter...first advertised here in 1995 !
in IN, MO
Compensation & Benefits Audit & Government Filing Merger Analyst
for BB&T (Branch Banking and Trust)
in NC
Compensation & Benefits Plan Administration Merger Analyst
for BB&T (Branch Banking and Trust)
in NC
Relationship Manager
for BISYS
in PA
Health Benefits Analyst
for The Segal Company
in MA
Operations Manager
for Polycomp Administrative Services, Inc.
in CA
Newly Posted Webcasts
(Post Yours!)
Medicare Prescription Drug Proposals: An Update
on June 26, 2003
presented by Kaiser Family Foundation
Newly Posted Conferences
(Post Yours!)
CEBS Course 3-Retirement Plans: Basic Features and Defined Contribution Approaches
in ALL STATES
August 25, 2003
IFEBP/CEBS Program
Newly Posted Press Releases
(Post Yours!)
Treasury and IRS Shut Down Arrangements Purporting To Defer Taxes on Stock Option Gains
(Internal Revenue Service)
Thompson Publishing Group Announces New Internet Benefits Resource
(Thompson Publishing Group)
Transamerica Retirement Services Launches New Enrollment Workshop Online Designed to Increase Plan Participation
(Transamerica Retirement Services)
How To Manage Your 401(k) Plan For The 21st Century: Philadelphia-Area Experts Provide Answers For Finance and Benefits Executives
(Resources for Retirement, Inc.)
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