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August 1, 2003 - 8,429 subscribers
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New Health Coverage Tax Credit Program Begins Nationwide August 1st
Press release. Excerpt: "Starting August 1st, the federal Health Coverage Tax Credit (HCTC) program will begin operation nationwide, providing advance payments for health insurance premiums. The Trade Adjustment Assistance Act President Bush signed into law last year included the HCTC to help lower the cost of health insurance and provide much-needed relief to eligible state residents." (Internal Revenue Service)
IRS 'Fact Sheet' on the Health Coverage Tax Credit (PDF)
2 pages. Excerpt: "The federal Health Coverage Tax Credit was created by the Trade Act of 2002 to help certain displaced workers and certain retirees pay for health insurance.... The credit covers 65 percent of the cost of qualified health insurance for eligible individuals and their qualified family members. To receive the HCTC an individual must be enrolled in a qualified health insurance plan." (Internal Revenue Service)
How Do the DOL's Proposed COBRA Regulations Affect Our Group Health Plan's SPD Disclosures?
Excerpt: "Although the DOL's 2003 proposed COBRA regulations primarily cover the obligations of employers and plan administrators with respect to various COBRA notices and disclosures, they do indirectly require SPDs to contain information not specifically called for in the SPD regulations themselves." (EBIA Weekly (Question of the Week))
Text of American Benefits Council Comments on Proposed COBRA Notice Regulations (PDF)
8 pages. Excerpt: "[T]he Council urges the Department to: [1] Eliminate the new notice requirements in the proposed regulations that are not mandated by statute, or clarify that these requirements are optional and not subject to penalty. [2] Allow a plan to reject a notice from a qualified beneficiary as untimely if the plan does not receive a notice that satisfies the plan's 'reasonable notification procedures' within the statutory time frame...." (American Benefits Council, courtesy of Groom Law Group)
Key Capabilities of an Electronic Health Record System
Excerpt: "A committee ... has identified a set of 8 core care delivery functions that electronic health records (EHR) systems should be capable of performing ... Detailed in a new report, this list of key capabilities will be used by Health Level Seven (HL7), one of the world's leading developers of healthcare standards, to devise a common industry standard for EHR functionality that will guide the efforts of software developers." (The National Academies Press)
Overview: HIPAA EDI Enforcement Guidelines Issued
Excerpt: "On July 24, 2003, the Centers for Medicare and Medicaid Services (CMS) issued Guidance on Compliance with the Transactions and Code Sets requirements of the Health Insurance Portability and Accountability Act (HIPAA), which are commonly referred to as HIPAA's electronic data interchange (EDI) standards." (The Segal Company)
Overview: 7th Circuit Rules Common Fund Doctrine May Not Be Applied as State or Federal Common Law
Excerpt: "The Seventh Circuit also rejected [plaintiff] Varco's contention that, even if preempted, the common fund doctrine should be applied as a matter of federal common law. The Court held that 'applying federal common law to override the Plan's reimbursement provision would contravene, rather than effectuate, the underlying purposes of ERISA because the express terms of the Plan provide for the appropriate distribution of attorney's fees.'" (Lawrence & Russell)
Canada Fills Drug Prescriptions for Springfield, Mass., Employees
Excerpt: "The city of Springfield has established what is apparently the nation's first municipal program to buy discount prescription drugs in Canada for its employees and retirees, joining a rising wave of drug importation that federal regulators say is against the law." (The Boston Globe via International Foundation of Employee Benefit Plans)
Overview: EEOC Proposed Regs Allow Coordination of Retiree Health Benefits with Medicare Eligibility (PDF)
Excerpt: "After several years of investigation and debate, the U.S. Equal Employment Opportunity Commission (EEOC) finally issued proposed regulations which allow employers to alter, reduce or eliminate employer-sponsored retiree health benefits when a retiree becomes eligible for Medicare or a State-sponsored health plan. The proposed regulations, however, do not apply to cash or other non-health benefits." (Davis & Kuelthau, s.c.)
Links to Items on Executive Comp, Benefits in General
Text of Final Regulations on Golden Parachute Payments Under Code Section 280G (PDF)
106 pages. Excerpt: "Effective Date: August 4, 2003. These regulations apply to any payment that is contingent on a change in ownership or control if the change in ownership or control occurs on or after January 1, 2004.... Under the 2002 proposed regulations, taxpayers are permitted to rely on the 2002 proposed regulations until the effective date of the final regulations." (Internal Revenue Service)
Rev. Proc. 2003-68 on Valuation of Stock Options for Purposes of Code Sections 280G, 4999 (PDF)
13 pages. Excerpt: "This revenue procedure restates and modifies Revenue Procedure 2002-13 ... Section 280G denies a deduction for any excess parachute payment. Section 4999 imposes a nondeductible 20-percent excise tax on the recipient of any excess parachute payment, within the meaning of ยง 280G(b)." (Internal Revenue Service)
Newly Posted or Renewed Job Openings
Pension/ 401k Administrator
for Karr Barth Pension Administration, Inc.
in PA
Director of Plan Administration
for MidAmerica Administrative & Retirement Solutions, Inc.
in FL
Manager Activations & Operations, HR-Benefit Services
for Intuit, Inc.
in CT
Newly Posted Press Releases
(Post Yours!)
Pension Rights Center Hails IBM Decision as Victory for Employees
(Pension Rights Center)
Most Employers Favor Health Promotion Programs to Contain Health Care Costs
(Hewitt Associates)
IBM To Appeal Lower Court Decision in Pension Case
(IBM)
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- Using the Web for Employee Benefits Research
- Employee Benefits Library
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