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December 23, 2003 - 8,783 subscribers
Today's sponsor: Financial Research Associates
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"Made in America (sm) 2004, the Inaugural Taft-Hartley Benefits Summit" Financial Research Associates’ is proud to present "Made in America (sm) 2004, the Inaugural Taft-Hartley Benefits Summit," scheduled for February 18-21, 2004 at The Caesar’s Palace in sunny Las Vegas, Nevada. We have been receiving an excellent response from the industry so far and we would love for you to be a part of this no-nonsense event! For more information or to register call 800-280-8440 or visit www.frallc.com.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
FDA to Illinois on Canada Drug Reimportation Proposal: 'No Way'
Excerpt: "The Bush administration warned Monday that states and cities seeking to import lower-cost drugs from Canada face legal action and financial liability. Citing safety concerns, officials at the Food and Drug Administration and Health and Human Services Department used their strongest language yet in response to appeals by governors and mayors who hope to save money for governments and consumers." (USA Today)
Ohio Attorney General Says State Pension Fund Overcharged by Drug Supplier
Excerpt: "The state teachers pension fund was overcharged millions for pr*scription drugs by Medco Health Solutions Inc., according to a lawsuit filed by the Ohio attorney general. The State Teachers Retirement System of Ohio is seeking up to $50 million from Medco, the nation's biggest pharmacy benefit-management company, including $36 million in alleged overcharges for mail-order dispensing fees for pr*scription drugs." (The Columbus [Ohio] Dispatch via NewsAlert.com)
Growing Pressure on Pharmacy Benefit Managers To Disclose Details of Agreements with Drug Companies
Excerpt: "The New York Times on Saturday examined the 'growing pressure' on pharmacy benefit managers to end their practice of 'cutting secret deals' with pharmaceutical companies that often favor sales of expensive medications. Employers and health plans pay PBMs to negotiate reduced prices for pr*scription drugs on formularies, and PBMs also often receive rebates from pharmaceutical companies based on sales volume." (KaiserNetwork.org)
IRS Issues Publication 503 (Child and Dependent Care Expenses) for 2003
Excerpt: "Pub. 503 explains the tests that a taxpayer must pass in order to claim the dependent care tax credit under Code Section 21 ('Dependent Care Tax Credit') for child and dependent care expenses. (Similar tests must also be met for expenses to be reimbursable under a dependent care assistance program (DCAP).) Pub. 503 incorporates the various increased limits enacted as part of EGTRRA and JCWAA." (Employee Benefits Institute of America (EBIA))
No COBRA Rights After Termination of Employer's Group Health Insurance for Nonpayment of Premiums
In re Health Mgmt. (Bankr. C.D. Ill. 2003). Excerpt: "The court concluded that the insurer was not required to provide coverage for employees for the period in question. It found that COBRA's notice requirements did not apply to the insurer because the employer, not the insurer, was the plan administrator." (Employee Benefits Institute of America (EBIA))
Participant's Letter Did Not Satisfy Plan's Change of Beneficiary Rules
Metropolitan Life Inc. Co. v. Kubichek (3d Cir. 2003). Excerpt: "EBIA Comment: When a participant fails to dot the i's and cross the t's in attempting to change a beneficiary or when required forms or documents cannot be found, the disappointed claimant often argues that the participant substantially complied with the plan's requirements. How much compliance is needed for it to be considered substantial? Different jurisdictions have different standards." (Employee Benefits Institute of America (EBIA))
Text of Amicus Brief by American Benefits Council, Other Organizations in S. Ct. Managed Care Case (PDF)
36 pages; Aetna Health Inc. v. Davila and Cigna Healthcare, Inc. v. Calad. Excerpt: "[T]he U.S. Supreme Court has announced it will hear together the two cases. At issue in both cases is whether state medical malpractice law or ERISA should govern when an insurance company makes a decision that could be construed as a benefits or treatment determination. The Council's brief supports the merits of both petitioners' arguments." (American Benefits Council)
Medicare Legislation Presents Employers Far-Reaching Choices
Excerpt: "The Medicare reform legislation signed into law by President Bush presents employers sponsoring retiree medical programs with a brand new set of options -- and opportunities. Since the legislation changes the landscape in a big way, notably with the addition of a government-subsidized pr*scription drug benefit to Medicare, employers have the opportunity to revisit their retiree medical commitments." (Towers Perrin)
Opinion: Medicare Law Was Bad 'Senior Moment'
Excerpt: "The GOP won this Medicare fight. Now, Dems must keep seniors (and themselves) united." (The American Prospect)
Exploring the Consumer-Driven Approach
Excerpt: "Consumer-driven health plans are an option employers can choose to combat the rising costs of health care. However, employers have hesitated to offer such plans fearing the CDHPs may be a 'fad' and cost savings will be negligible.... This article explores the consumer-driven approach to health care and what employers can do to keep costs down an increase participation in such plans." (Aon Consulting)
Health Savings Accounts Can Cut Taxes
Excerpt: "The tax-favored accounts, which will be available after Jan. 1, will be open to any working person with a high-deductible health insurance policy. The idea is for consumers to use tax-free savings accumulated in the accounts to pay for medical expenses that are not covered by health plans." (Kathy Kristof in the Philadelphia Inquirer)
Insurers, Consumer-Directed Health Vendors Applaud HSA Law, Prepare to Bring New Products to Market
Excerpt: "Less than an hour after President Bush signed legislation that will allow employers and consumers to deposit tax-free dollars into health savings accounts (HSAs), Aetna, Inc., unveiled plans to add an HSA product to its HealthFund family of CDH products. And Aetna isn't alone." (Inside Consumer-Directed Care via AISHealth.com)
Study: Long-Run Health Expenses Drop if Doctors Are Paid to Care for Patients, Not Just See Them?
Excerpt: "A Vanderbilt University Medical Center study is considering a novel way to cut health-care costs. If insurers paid doctors for talking patiently with patients-- instead of seeing as many people as possible in a day-- we all might become healthier and spend less on medical care. And, in the long run, health insurance costs paid by businesses and their employees might go down." (The [Nashville] Tennessean)
Links to Items on Executive Comp, Benefits in General
Year-End Review for Plan Sponsors and Administrators (PDF)
5 pages. Excerpt: "We have compiled a list of certain changes made by recent laws and regulatory pronouncements, unfinished business in Congress, and agency audit initiatives that affect employee benefit plans. Some of these items may require employer action, including plan amendments for the 2004 plan year. In addition, other factors (e.g., inflation adjustment of key plan maximums, court decisions) may require changes to retirement and health and welfare plans." (Mellon's Human Resources & Investor Solutions)
Newly Posted Events
Labor Department Sponsors Workshop on Complying With Federal Pension Plan
in California on January 15, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Northeast Area Employee Benefits Conference
in Massachusetts on June 1, 2004
presented by ASPA—The Retirement Plan Professionals
Northeast Area Employee Benefits Conference
in New York on June 11, 2004
presented by ASPA—The Retirement Plan Professionals
Specialty Pharmaceutical Management Strategies For Health Plans And Employers
in Illinois on March 15, 2004
presented by International Quality & Productivity Center (IQPC)
Newly Posted Press Releases
Retirement Capital Group announces a Joint Venture with Retirement Plan Advisory Group
(Retirement Capital Group)
Participant Present at the Creation Documents the Birth of 401(k) Plans
(Employee Benefit Research Institute (EBRI))
Newly Posted or Renewed Job Openings
Administrative Assistant
for Retirement Plan Administration and ERISA Specialists
in IL
Supervisor, Reconciliations
for BISYS Retirement Services
in PA
Omni Product Support Specialist
for AMVESCAP Retirement, Inc.
in GA
Director HR Administration
for Convergys
in ALL STATES, FL
Sales -- Pension & Cafeteria Plan Software
for DATAIR Employee Benefit Systems, Inc.
in IL
Account Executive
for Transamerica
in CA
Compensation Analyst
for Forum Health System
in OH
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