July 29, 2003 - 8,440 subscribers Today's sponsor: Thompson Publishing Group, Inc. (Click on company name or banner to learn more.) “New COBRA Notice Rules” Now available on Tape and CD! Are you familiar with the DOL’s new proposed COBRA notice requirements? On May 28, the U.S. Department of Labor (DOL) issued proposed regulations that clarify and expand group health plans’ obligations to provide notices of COBRA continuation coverage rights to qualified beneficiaries. Gain insight on the DOL’s proposal by purchasing a tape or CD of this important audio conference. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Senate Unlikely To Approve Drug Importation Bill Passed by House Excerpt: "A bill (HR 2427) that would allow U.S. residents to obtain prescription drugs from Canada and some other nations faces 'a solid bipartisan wall in the Senate to stop it' despite 'surprisingly easy passage' in the House last week, the Los Angeles Times reports." (KaiserNetwork.org) Opinion: We'll Pay Tomorrow for Cheap Drugs Today Excerpt: "The House of Representatives has passed legislation that signals members believe that cheap prescription drugs are more important than safe drugs and that cheap drugs today are more important than new drugs tomorrow." (The Galen Institute) Text of First Private Letter Ruling Approving Terms of Health Reimbursement Arrangement (PDF) 4 pages. Excerpt: "The medical reimbursement plan is available only to those employees who have elected, through salary reduction, to purchase employer-sponsored health insurance. Under the Plan, Taxpayer pays for the medical reimbursement plan and employees do not make any salary reduction elections to pay for the medical reimbursement." (Internal Revenue Service) Consumer-Driven Health Plans Drive Significant Skepticism Excerpt: "Consumer-driven health plans are creating many doubts for both employers and employees. Among the reasons for skepticism: employees' lack of desire to learn about their plans, the effect on older workers, and trouble finding and analyzing the health information available." (Workforce.com) Roundtable Discussion: Consumer-Driven Health Care-- Fad or Fixture? Excerpt: "To learn how various employers view CDHC, Buck Consultants moderated a roundtable discussion of benefit plan directors from five companies in different industries that have implemented or are considering CDHC. As the chart below indicates, some of our roundtable participants have forged ahead with their CDHC programs while others continue to consider it. All shared interesting -- and varied -- perspectives about CDHC ..." (Buck Consultants) The Impact of Price Regulation on the Launch Delay of New Drugs - Evidence from 25 Major Markets Working paper. Excerpt: "We use a Cox proportional hazard model to analyze the launch experience in 25 major markets of 85 new chemical entities (NCEs) launched in the UK or US between 1994 and 1998.... Our results suggest that countries with lower expected prices or smaller expected market size experience longer delays in new drug access, controlling for per capita income and other country and firm characteristics." (Patricia M. Danzon, Y. Richard Wang, Liang Wang, published by the National Bureau of Economic Research) GAO Can't Explain Rise in Physician Malpractice Premiums Excerpt: "Insufficient information exists to explain the cause of medical malpractice premium spikes in recent years, according to a General Accounting Office study ..." (Modern Healthcare) Medical Malpractice Insurance: Multiple Factors Have Contributed to Increased Premium Rates 74 pages. Excerpt: "GAO is not recommending executive action. However, to further the understanding of conditions in current and future medical malpractice markets, Congress may wish to consider encouraging the National Association of Insurance Commissioners and state insurance regulators to identify and collect additional, mutually beneficial data necessary for evaluating the medical malpractice insurance market." (U.S. General Accounting Office) Consumer Group Calls on Insurance Industry to Make Medical Malpractice Data Available Press release. Excerpt: "Insurance companies should immediately make publicly available data related to medical malpractice premiums in response to the sole recommendation of a report by the United State General Accounting Office (GAO), the nonpartisan Foundation for Taxpayer and Consumer Rights (FTCR) said ..." (The Foundation for Taxpayer and Consumer Rights) Family-Friendly in Des Moines Excerpt: "Midwestern values have infiltrated the workplace in Iowa, where employee benefits include the highest-quality car seats you can buy. One employee says 'out here, we really do believe it takes a whole community to raise a child.'" (Workforce.com) Health Coverage Tax Credit: the August 1, 2003 Implementation (PDF) 34 pages. Excerpt: "The Health Coverage Tax Credit pays 65% of the cost of premiums for qualified health plans for eligible individuals and qualified family members.... The advance tax credit program becomes operational August 1, 2003, although the year-end tax credit has been available since December 2002." (Internal Revenue Service) Health Coverage Tax Credit: the COBRA Early Payment Procedural Guide (PDF) Excerpt: "Purpose: To communicate the HCTC Early Payment process to COBRA third party administrators (TPAs).... Beginning August 1, 2003, the HCTC Program is offering the Early Payment process to individuals currently enrolled in COBRA." (Internal Revenue Service) Links to Items on Executive Comp, Benefits in General Overview: Employer Could Deduct Value of Compensatory Stock That Employee Didn't Include In Income Excerpt: "IRS has recently mounted a multi-pronged attack against employees who attempt to defer income recognition by transferring nonstatutory compensatory stock options to related parties for long-term notes.... [T]he promoters of these schemes say that tax can be deferred until the note is paid, even though the related party typically exercises the options shortly after the transfer." (RIA Tax News) Many Colorado Companies Reluctant to Expense Stock Options Excerpt: "Although they admit some reforms are needed, opponents of mandatory expensing say it goes too far and will confuse investors, stifle innovation and leave American corporations at a disadvantage." (The Denver Post via NewsAlert.com) Newly Posted or Renewed Job Openings Plan Administrator for weaver partners, inc. in ALL STATES 401K Client Service Rep for ADP in NJ Retirement Plan Administrator for InWest Pension Management, Inc. in TX Retirement Plan Specialist Team Leader for Diversified Investment Advisors in FL Retirement Plan Specialists for Diversified Investment Advisors in IN, MI Director - Product Planning for ADP in NJ 401(k) Plan Administrator for Sample & Bailey CPAs PC in CO Pension Plan Administrator for Tycor Benefit Administrators, Inc. in PA Pension Assistant for Tycor Benefit Administrators, Inc. in PA Employee Benefit Operations Manager for Employee Benefit Operations Manager in FL Manager - Disability for Verizon Wireless in NJ Newly Posted Webcasts (Post Yours!) New COBRA Regulations Overview on July 31, 2003 presented by International Foundation of Employee Benefit Plans U.S. Retirement Plan Governance on August 7, 2003 presented by Mercer Human Resource Consulting Newly Posted Conferences (Post Yours!) Cross-Testing (Gateway Rules for DB & DC Plans) in CA August 28, 2003 National Institute of Pension Administrators, San Francisco Chapter Newly Posted Press Releases (Post Yours!) SunGard Corbel Introduces New Hardcopy 5500 Reference Tool (SunGard Corbel) CIMS and eBenefitManager™ Sign Joint Marketing Agreement (eBenefitManager™) Handy Links:
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