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July 21, 2003 - 8,417 subscribers
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Prescription Drug Trends
Excerpt: "This two-page fact sheet, last updated in May 2003, provides trend data for prescription drug coverage, expenditures, and the key factors that contribute to rising prescription spending: increases in utilization and prices, and changes in drug use from older drugs to newer higher-priced drugs." (The Henry J. Kaiser Family Foundation)
Position Paper: a Walk Through the Woods of Association Health Plans (PDF)
7 pages. Excerpt: "[S]mall employers look longingly at the large employers who are free of ... onerous [state] regulations and wish they could enjoy those advantages as well.... [I]nsurance companies fear losing the bulk of their remaining business if small companies can self-insure. And state government officials don't want to lose their authority over the small group market. So they have come to oppose releasing small employers from the regulated market. Both sides overstate their case ..." (The Galen Institute)
Dealing with Employees' Addictions, and What Comes After
Excerpt: "More companies are willing to offer assistance [to employees who are addicted to alcohol or drugs] these days, especially as they deal with higher levels of employee stress from heightened workloads and job cuts. Yet many workers are still reluctant to take advantage of this help, for fear of jeopardizing their positions." (New York Times; one-time registration required)
EAP Diversity Detracts From Original Focus, Some Say
Excerpt: "Employee assistance programs (EAPs) have evolved over the years from their original roots as workplace alcoholism assistance plans into, in many instances, conglomerates of behavioral health, substance abuse treatment and work-life services such as financial and legal aid and dependent care referral." (BenefitNews.com)
Blue Cross and Blue Shield Plans Take Positive Action in Response to Big Pharma Promotions
Press release. Excerpt: "The often controversial promotional practices of drug manufacturers to invest billions of dollars annually in order to get physicians to prescribe their drugs has led Blue Cross and Blue Shield Plans to actively develop initiatives that encourage the appropriate use of prescription drugs. These programs have been shown to save consumers and health plans millions of dollars each year while improving patient care outcomes." (BlueCross BlueShield Association)
Opinion: Best Approach for Covering the Uninsured Isn't Even on the Table
Excerpt: "[I]t's surprising that Democrats have not revived the single truly original idea that emerged out of the Clinton-era debate: 'play-or-pay.' This idea holds that employers (including self-employed people) must either provide coverage (''play'') or ''pay'' a payroll tax to fund public coverage." (Jacob S. Hacker in the Boston Globe)
Opinion: Drug Company Backlash Hits Fever Pitch In Congress
Excerpt: "[N]obody outdoes the drug makers in their bipartisan array of high-priced lobbyists or their bipartisan campaign contributions. Yet, with their very existence at risk, the pharmaceuticals encounter loathing on both sides of the aisle in Congress as part of a broader epidemic of anti-corporate hysteria." (Chicago Sun-Times)
Opinion: the High Price of Cheap Drugs
Excerpt: "The House's importation measure is supported by a bipartisan coalition that wants U.S. prices to match prices in Canada or other nations that control drug prices. This is a pretty radical change, and it merits some careful thought." (American Enterprise Institute)
Opinion: How the Senate Medicare Drug Bill Would Raise Senior Citizens' Out-of-Pocket Drug Costs
Excerpt: "The Medicare legislation that has been enacted by both the House and Senate threatens to shrink dramatically the number of beneficiaries who currently enjoy employer-provided prescription drug benefits. This is especially the case with the Senate legislation (S. 1) ..." (The Heritage Foundation)
Opinion: Allowing Drug Importation is Dangerous Dealing
Excerpt: "There are three key issues: The danger of price controls, the immeasurable damage to future research and development, and the safety of the U.S. drug supply - all huge considerations." (The Galen Institute)
Links to Items on Executive Comp, Benefits in General
Full Text of Summer 2003 Special Edition of IRS' Employee Plans News (PDF)
2 pages. Excerpt: "It's the middle of summer and the weather isn't the only thing heating up. In the past few days, the IRS has issued proposed and final regulations on a number of topics. The new guidance provides rules on everything from 401(k) plans to retroactive annuity starting dates to welfare benefit funds. Below are capsule summaries of each of the new pieces of guidance. We follow this summary list with an article on the new 401(k) regs." (Internal Revenue Service)
Court: Employer Gets Sec. 83 Deduction Even if Taxpayer Doesn't Pay Income Tax on Bargain Element
Robinson v. U.S., No. 02-5154 (07/15/03, Fed. Cir.). Excerpt by FindLaw: 'Under section 83(h) of the Internal Revenue Code, addressing deductions for employers who use property transfers (other than money) to compensate employees, the amount of the employer's deduction is the value of the transferred property that is includible in the employee's gross income as a matter of law as opposed to only the amount that is actually included in the employee's gross income." (U.S. Court of Appeals for the Federal Circuit, via FindLaw.com)
2nd Circuit: Detrimental Reliance Showing Not Necessary for Plaintiff to Prevail Under Defective SPD (PDF)
23 pages; Burke v. Kodak Retirement Income Plan, No. 02-9051 (2d Cir. 7/17/2003). Excerpt: "[R]equiring plan participants or beneficiaries to show detrimental reliance to recover for a deficient SPD contravenes ERISA's objective to promote distribution of accurate SPDs to employees." (U.S. Court of Appeals for the Second Circuit, via FindLaw.com)
Opinion: the Downside of Using Restricted Stock to Compensate Executives
Excerpt: "The biggest single problem with stock options still exists: Executives are in charge of the decisions that will make them the most money, which may or may not benefit other shareholders in the long term.... Things to expect in coming years if this dividend infatuation goes too far: 1. A new class of restricted stock (for executives) that lets the recipient claim dividends but somehow allows them to have optionlike upside -- like a warrant with dividends." (Jonas Max Ferris on TheStreet.com)
Overview: Recent Executive Compensation Developments (PDF)
Excerpt: "IRS Issues New Proposed Regulations on Incentive Stock Plans ... SEC Approves NYSE and Nasdaq Rules for Shareholder Approval of Equity Compensation Plans ... Valuation of Equity Split-Dollar Life Insurance – Summary of New IRS Guidance ... New Accounting for Stock Options ... Frequently Asked Questions Regarding Electronic Filing of Section 16 Reports ... Tax on Exercise of Nonqualified Stock Options Not Deferred by 'Short Swing Profit Rule' or 'Lockup' Agreement." (Gardner Carton & Douglas LLC)
Newly Posted or Renewed Job Openings
Health & Welfare Consultant
for Towers Perrin
in CT, DC, GA, OH, PA
Health & Welfare Consultant
for Towers Perrin
in Location Other Than U.S.
Pension Administrator
for The Weiss Group, Inc.
in IL
401(k) Plan Administrator
for Benefit Resources, Inc.
in CA
Compliance Manager
for AMVESCAP Retirement, Inc.
in GA
Daily Valuation Administrator
for Union Bank of California
in CA
Pension / Benefits Specialist
for RBG&Co.
in MO
Insurance Administrator
for Insurance and TPA Firm near Southfield MI
in MI
Newly Posted Conferences
(Post Yours!)
ERISA Workshop
in CA, CO, CT, DC, FL, GA, IA, IL, IN, KS, LA, MA, MI, MN, MO, MS, NC, NE, NJ, NM, NY, OH, PA, TN, TX, VA, WA, WI
September 18, 2003
SunGard Corbel
Newly Posted Press Releases
(Post Yours!)
Franklin Templeton Investments Announces Availability of Third Quarter Retiirement Sales Brochure
(Franklin Templeton Investments)
Franklin Templeton Investments Receives Association of Graphic Communications Achievement Award
(Franklin Templeton Investments)
Benefit Costs Rise for High-Tech Firms
(Culpepper and Associates, Inc.)
Delta Dental's Call Center Earns Benchmark Portal Certification: Tri-State Dental Benefits Provider Exemplifies Best-Practice in Customer Relations
(Delta Dental Plan of Michigan)
House Committee Passes Pension Bill With Lifetime Income Incentive
(American Council of Life Insurers)
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