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February 3, 2004 - 8,783 subscribers
Today's sponsor: International Foundation
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Register now for this timely and informative educational offering With the passage of the Medicare Prescription Drug Improvement and Modernization Act by Congress in December 2003, health savings accounts (HSAs) are now a viable health care option as of January 1, 2004. What does this mean for your consumer-directed health care plan? How does it affect or compare to other forms of health care accounts that you may already have in place? For more information or to register visit www.ifebp.org.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Judge Approves $540 Million Cigna Settlement With Doctors
Excerpt: "A judge approved an agreement Monday worth an estimated $540 million in costs to Cigna and savings to doctors to settle claims that the company systematically cheated on payments to the nation's 950,000 physicians. Cigna joined Aetna in settling racketeering lawsuits against managed care industry leaders." (AP via the Miami Herald)
Small Group Health Insurance in California: New Products, Hard Choices
Excerpt: "Today's workers will have to pay more, sometimes a lot more, out of their own pocket. In the small-group market, health insurance is increasingly becoming something that protects against the financial catastrophe of big, unexpected bills but not payouts for routine care." (California HealthCare Foundation)
Companies Limit Health Coverage of Many Retirees
Excerpt: "Experts expect that the trend, driven by the fast-rising cost of health care, will continue, despite the billions of dollars that the government will distribute to companies that maintain retiree health coverage when the new Medicare drug benefit begins in two years." (New York Times; one-time registration required)
Overview: Health Savings Accounts-- the New Tax-Favored Vehicle for Payment of Healthcare Expenses (PDF)
At pp. 2-5 of 6-page document. Excerpt: "IRC section 223(a) provides for a deduction from gross income in the amount of qualifying contributions made by an eligible individual, up to the annual contribution limits described above, whether or not the individual itemizes other deductions." (Trucker Huss)
Overview: the New Health Savings Accounts
Excerpt: "Not only are deposits to HSAs tax deductible, earnings compound on a tax-free basis, and withdrawals are tax free so long as they are used for medical costs. While this is a feature of current Medical Savings Accounts, MSAs operate only as a demonstration project on a limited basis and are not available to most people." (Alson R. Martin of Shook, Hardy & Bacon L.L.P., published by the Small Business Council of America)
Links to Items on Executive Comp, Benefits in General
Bookmark: 'Listed Transactions' for Employee Benefit Plans
Excerpt: "The IRS had identified the following transactions involving employee benefit plans as listed transactions: 401(k) Accelerated Deductions; S Corporation ESOP Abuse of Delayed Effective Date for Section 409(p); Collectively Bargained Welfare Benefit Funds under Section 419A(f)(5); Certain Trust Arrangements Seeking to Qualify for Exemption from Section 419; Abusive Roth IRA Transactions; S Corporation ESOP Abuses: Certain Business Structures Held to Violate Code Section 409(p)" (Internal Revenue Service)
Senate Finance Committee Passes COLI Reform Bill
Press release. Excerpt: "The legislation would, among other things ... Require companies to obtain the consent of all individuals before enrolling them in a COLI plan. This provision codifies into federal law current business practice and the National Association of Insurance Commissioners' Model Regulation on consent. At least 43 states already have consent requirements." (American Council of Life Insurers)
Attorney Michael S. Gordon Dies
We are sad to report that Washington, D.C. ERISA attorney Michael S. Gordon died unexpectedly on February 1. Services are to be held on February 4 at Washington Hebrew Congregation. We'll link to an obituary as soon as one appears in the Washington Post or other newspapers. He was an attorney for the Senate Labor subcommittee during the drafting of ERISA, and had been chairman of the board of directors of the Pension Rights Center for 19 years. (Michael S. Gordon's Testimony at Recent House Hearing)
Newly Posted Press Releases
Preserving Cash Balance Plans for Workers: Treasury Proposes Legislation to Protect Defined Benefit Plans and Ensure Fair Treatment of Older Workers in Cash Balance Conversions
(Internal Revenue Service (IRS))
Sales Tool Vital for Client-Centered Retirement Planning
(Metrics Partners)
ASPA Applauds Changes to Bush Administration Savings Initiatives; Revised Proposals Will Now Promote Small Business Retirement Plan Coverage
(ASPA—The Retirement Plan Professionals)
BenefitMall Completes Acquisition Of Colorado Group Services
(BenefitMall)
Newly Posted or Renewed Job Openings
Defined Contribution Plan Administrators
for Growing Third Party Administrator on Fifth Avenue in Manhattan
in NY
Pension Sales Representative
for Standard Insurance Company - Retirement Plans Division
in CA
Benefits Administrator
for Independent Benefit Services
in MD
EB Trust Administrator
for BB&T/Stanley Hunt DuPree & Rhine
in SC
Consulting Actuary
for Stanley Benefit Services
in NC
Retirement Plan Manager
for Gensler
in CA
Human Resource Generalist
for Gensler
in CA
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