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January 21, 2004 - 8,783 subscribers
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Bush Offers Plan for Health Care Reform
Excerpt: "President Bush's State of the Union address includes plans to overhaul the nation's health care system. The president calls for computerized health records, curbs on 'wasteful and frivolous' medical lawsuits and tax breaks for those who buy their own health insurance. Economists say the proposals as a package could reduce costs. Hear NPR's Joanne Silberner." (National Public Radio)
Per Diem Arrangements and Accountable Plans
Excerpt: "Employees and employers can both benefit when a reimbursement for expenses is made pursuant to an accountable plan or through a per diem arrangement. The IRS has been vigilant in challenging arrangements where it suspects the arrangement is merely camouflaging actual compensation in an attempt to avoid taxation.... Recent case law and IRS pronouncements provide some guidance on how to ensure that an arrangement is structured properly." (The CPA Journal)
HSA Adjudication Is "Between the Taxpayer, God, and the IRS"
Health savings account owners may use HSA funds to pay for their spouse's and/or dependents' medical expenses, even if the spouse or dependents are not enrolled in the employee's high-deductible plan or have coverage under another employer's plan, said Kevin Knopf, attorney adviser in the Treasury Department's Office of Benefits Tax Counsel. Mr. Knopf spoke and answered questions at a January 13 teleconference sponsored by the American Bar Association's joint committee on employee benefits. (Spencer Benefits Reports)
Overview: Medicare Law Allows 'Health Savings Accounts' and Affects Retiree Medical Benefits Plans
5 pages. (Winston & Strawn LLP)
Opinion: Health Savings Accounts Are Matter of Taste
Excerpt: "For people in the know, health savings accounts are a little like the most expensive caviar. It is either: 1) A treat that makes life all the more enjoyable and worthwhile, or 2) Salty fish eggs that belong in their original container.... Proponents of the HSAs ... argue that using their own money would make people more careful and selective consumers of medical services and pr*scription drugs. Opponents of the HSAs ... argue that HSAs are for the young and healthy." (Mike Causey in the Washington Times)
Opinion: Birth Control Pr*scription Coverage Fair, Makes Sense
Excerpt: "Contraceptives have a proven track record of enhancing the health of women, including the prevention of certain cancers, endometriosis and anemia. Additionally, they prevent unintended pregnancies and reduce the need for abortion. The tide is turning in the battle for women to have their contraceptives covered by their health insurance provider." (Jennifer Meinig in the Charleston Gazette)
AFL-CIO Throws Muscle Into Grocery Health Benefits Dispute
Excerpt: "The AFL-CIO is taking control of national strategy for the California supermarket strike and lockout, assigning two veterans of labor wars to turn around a battle in which employers seem to have gained the upper hand." (Los Angeles Times via the Houston Chronicle)
What Would Association Health Plans Mean for California?
Excerpt: "Currently proposed federal legislation would allow business associations to offer licensed health insurance plans--Association Health Plans or AHPs--that are exempt from state regulations such as guaranteed issue, guaranteed renewal, rating restrictions, and benefit mandates. According to two reports sponsored by CHCF, AHPs would leave less of the market under state supervision." (California HealthCare Foundation)
Wall Street Journal Examines Big Three Automakers' Efforts Against Hospital Expansion
Excerpt: "The Wall Street Journal Tuesday examined efforts by the Big Three auto manufacturers -- General Motors, Ford Motor Company and DaimlerChrysler -- to block the construction of two hospitals in suburban Detroit and their claim that hospital overcapacity increases health care costs." (KaiserNetwork.org)
A Primer on the Candidates' Healthcare Proposals
Excerpt: "While the candidates have offered ideas for lowering the costs of care for everyone, their main focus has been on expanding coverage to the uninsured. And all the plans are balanced on the razor's edge between the need to reform a dysfunctional system and political expediency." (Concord [New Hampshire] Monitor)
Links to Items on Executive Comp, Benefits in General
Text of IRS Notice 2004-10 on Electronic Delivery of Form 1099 and Form 5498 Payee Statements (PDF)
Excerpt: "This notice provides guidance to sponsors or administrators of retirement plans or qualified tuition programs (QTPs), or trustees, custodians, or issuers of traditional [IRAs], Roth IRAs, Coverdell education savings accounts (CESAs), or [Archer MSAs] regarding the electronic delivery of payee statements to recipients. Specifically, this notice provides that a furnisher of a Form 1099 or a Form 5498 ... may provide the payee statements electronically beginning after December 31, 2003." (Internal Revenue Service)
Consider Using Professional Employer Organization to Get Better Deal on Employee Benefits
Excerpt: "PEOs are increasingly popular because they manage all the HR paperwork while offering entrepreneurs access to better employee benefits through economies of scale, says Milan Yager, executive vice president of NAPEO." (Entrepreneur Magazine)
New Drive in California to Permit G*y Marriages
Excerpt: "[Assemblyman Mark] Leno said he is encouraged by a recent decision of the Massachusetts state Supreme Court that found g*y couples have the right to marry under that state's constitution.... California was thrust into the forefront of efforts nationwide to give marriagelike rights to g*y couples through passage last year of AB 205, which expanded the state's domestic partners program." (Sacramento Bee)
Overview: New Jersey Formalizes Domestic Partnerships (PDF)
Excerpt: "The Act [requires] that a same-gender domestic partner generally be treated as a 'dependent' (or, where relevant, as a 'spouse,' [or] 'surviving spouse,' ...) for purposes of certain retirement and health benefits. Provisions cover both public sector retirement and health benefits, as well as health benefits available in the private sector. Note, however, that only samegender domestic partners qualify by law for retirement and health benefits on the same basis as spouses." (The Segal Company)
Ohio Working on G*y Marriage Ban
Excerpt: "After seven years of debate in the Statehouse, lawmakers are close to passing a law that would keep Ohio from recognizing same-sex marriages and keep some state employees from getting benefits for their domestic partners." (FOXNews.com)
Overview: Executive Compensation and Federal Tax Compliance
Excerpt: "The IRS has announced that it has undertaken a comprehensive audit initiative aimed at the compensation arrangements of senior corporate executives and directors. The IRS Large and Mid-Size Business Division is leading this initiative, and will focus on such items as nonqualified deferred compensation arrangements, split-dollar life insurance, corporate loans to executives, and other valuable executive perks (e.g., corporate housing and air travel)." (BNA Tax Management)
Pensions, Health Insurance, and Tax Incentives
Excerpt: "[EGTRRA] made sweeping changes to the rules governing pensions and [IRAs]. As these provisions were being debated, critics pointed out that the higher IRA limits-- which will reach as much as $6,000 for some taxpayers, up from $2,000 under previous law-- could crowd out private pensions ... [N]o evidence exists about how IRAs have affected employees' demand for pension plans. This study attempts to shed some light on the empirical magnitude of the crowd-out effect." (The Urban Institute)
Employee Benefits Regulations
Online versions of both ERISA and tax regulations, organized by the Internal Revenue Code or ERISA section they implement, are again available at Carol Calhoun's employee benefits site. You can also do a combined search for keywords in both ERISA and tax regulations. The links lead to the relevant regulations on e-CFR, which is updated daily. (Calhoun Law Group, P.C.)
New edition of Beyond Stock Options
The NCEO presents excerpts from the new edition of its book Beyond Stock Options: Phantom Stock, Restricted Stock, Stock Appreciation Rights, and Other Equity Alternatives. The book, which includes not only 8 chapters on such plans but also a CD with model plans, now has a chapter on combining multiple plans, as well as an index. (National Center for Employee Ownership)
Newly Posted Events
Who is the Employer?
in New York on February 11, 2004
presented by ASPA Benefits Council of New York
Newly Posted Press Releases
The Mutual Fund Scandal: Steps for the Prudent Fiduciary
(Bruce Ruud & Associates, LLC)
Former Executive of Tennessee Company Pleads Guilty to Criminal Charges Involving Pension Plan
(U.S. Department of Labor, Office of Public Affairs, Atlanta)
International Pension Readiness Report Finds Most Major International Industrial Countries Unprepared For Coming Crisis
(Watson Wyatt and the World Economic Forum)
Newly Posted or Renewed Job Openings
Health & Welfare Associate
for Towers Perrin
in CA, MA, TX
Actuarial Associate-Retirement
for Towers Perrin
in GA, MA, NY
Manager, Health and Insurance Benefit Plans
for Confidential search conducted by recruitingmanager.com, Inc.
in CA
Defined Contribution Sales Position
for Saunders Advisory Group, Inc.
in FL
Jr. Plan Administrator
for The Allocation Company, Inc.
in TX
Sales Consultant
for Havensure, LLC
in CT, MA, NY, RI
Accountant
for Fluor Federal Services
in WA
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- Employee Benefits Library
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