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February 25, 2004 - 8,783 subscribers
Today's sponsor: Employee Benefits Institute of America Inc. (EBIA)
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Are Your Health Plans in Compliance? HIPAA imposes far-reaching privacy requirements on health plans, plan administrators, and insurers--and EBIA is here to help! Our HIPAA Portability & Privacy manual is the best and most reasonably-priced resource for HIPAA privacy compliance. The manual is also the best resource on HIPAA portability (special enrollments, PCEs, certificates of creditable coverage, and nondiscrimination)! For more information, visit www.ebia.com.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Supreme Court Lets Stand Ruling on COBRA Error
Excerpt: "The Supreme Court on Monday declined to review and thus let stand a federal appeals court decision that the estate of a deceased man whose former employer improperly denied his COBRA coverage while he was alive isn't entitled to recover from the employer medical expenses that were paid by his wife's group health plan." (Business Insurance)
Two Months In: Insurance and Financial Markets Ramp Up HSA Business
Although health savings accounts (HSAs) have only been sanctioned since the first of the year, already they appear to be the darlings of the 'consumer-directed' health care industry. Many providers are designing new options to convert more restrictive medical savings accounts (MSAs) to HSAs or adding HSAs as options along with health reimbursement arrangements (HRAs). (Spencer Benefits Reports)
American Benefits Council Comments on IRS HSA Guidance (PDF)
15 pages. Excerpt: "[F]lexibility in the rules and prompt clarification of outstanding issues will be key factors in determining whether [American Benefits Council member firms] will offer an HSA as a benefit in 2005 and beyond. Many large employers need 6 months or more lead time to implement a new benefit option. Accordingly, we were encouraged to learn that Treasury anticipates issuing guidance on certain issues as early as next month." (American Benefits Council)
Galen Institute Responds to Recent Criticisms of Health Savings Accounts, Write Congress (PDF)
4 pages. Excerpt: "You have received e-mails from certain interest groups urging you to oppose adding Health Savings Accounts to the Federal Employees Health Benefits Program.... The [American Academy of Actuaries] study was a serious piece of work performed by a working group of respected actuaries with varying points of view. It is a gross distortion to characterize it as anti-MSA or to suggest it predicted massive selection problems with MSAs." (Galen Institute)
Governors Criticize Administration for Banning Drug Reimportation from Canada
Excerpt: "Wisconsin Gov. Jim Doyle took his case for letting state residents buy cheaper medicines from Canada to Capitol Hill on Tuesday, speaking at a hearing that included strong rebukes of the Bush administration. The event drew three other governors as well as federal lawmakers, some of whom angrily lashed out at the White House and the U.S. Food and Drug Administration ..." (Milwaukee Journal Sentinel)
Health Insurers to Boost Benefits for U.S. Seniors
Excerpt: "Private health plans are gearing up to sweeten coverage for senior citizens -- part of an aggressive effort to lure them away from the government-run Medicare program." (Wall Street Journal via SFGate.com)
Overview: All Employers Must Be In Compliance with HIPAA Privacy Rules by April 14, 2004 (PDF)
3 pages; 2/18/2004. Excerpt: "By April 14, 2004, all 'health plans,' including employer-sponsored group health benefit plans, must comply with the HIPAA Privacy Rules. While large group health plans needed to comply by April 14, 2003, small group health plans were given an additional year or until April 14, 2004." (Dow Lohnes & Albertson PLLC)
Aetna to Stop Subsidy of Retiree's Dental Coverage
Excerpt: "Aetna Inc. will stop subsidizing its retirees' dental insurance beginning Jan. 1, 2005, said a spokesman. The spokesman said retirees will still be able to get a reduced group plan rate, but Aetna's subsidies, which ranged from $72 to $340 a year, will end." (Business Insurance)
Links to Items on Executive Comp, Benefits in General
High Court Backs Benefits Based on Age
Excerpt: "Citing the soaring costs of health insurance, many other companies nationwide also have changed their benefits policies to eliminate or restrict access to retiree health benefits." (Washington Post; one-time registration required)
Text of Supreme Court Opinion Rejecting 'Reverse Discrimination' Argument
General Dynamics Land Systems, Inc. v. Cline et al.; the target page is a syllabus prepared by the Reporter of Decisions; the page includes links to the official opinion, Justice Scalia's dissent and Justice Thomas's dissent. (Cornell's Legal Information Institute)
AP Coverage: Court Blocks Reverse Age Discrimination
Excerpt: "Age has its benefits, the Supreme Court said Tuesday, ruling that younger workers can't sue their employers when older colleagues get preferential treatment." (AP via Washington Post)
PLANSPONSOR.com Coverage: Favoring Older Workers Not ADEA Violation
Excerpt: "In throwing out a lower court ruling, the justices said in a split six to three decision that the Age Discrimination in Employment Act (ADEA) is meant to protect workers from companies favoring younger colleagues but not the reverse, the Associated Press reported.... Justice David Souter, writing for the majority, agreed with General Dynamics. 'The statute does not mean to stop an employer from favoring an older employee over a younger one,' he wrote." (PLANSPONSOR.com; one-time registration required)
IBM Changes Stock Option Rules for Top Execs
Excerpt: "In an unusual move, IBM Corp. is adding a wrinkle to stock option awards-- executives can cash out only if the company's shares gain more than 10 percent. IBM says the decision would make the technology giant's top 300 executives more accountable to investors. The change was approved at a board meeting Tuesday and was to take effect immediately." (AP via Washington Post)
Opinion: IBM's One-of-a-Kind Executive Pay Plan Adds Risk
Excerpt: "Fans of extreme pay risk may yawn at what IBM is doing. Not so fast. IBM may not be injecting that much more risk, but it's heroic when compared with what so many other companies are -- or aren't -- doing. As far as I know, no other major U.S. company has a plan like IBM's." (Graef Crystal on Bloomberg.com)
Report: Private Sector Entities Routinely Obtain and Use SSNs, and Laws Limit Their Disclosure
35 pages. Excerpt: "You asked that GAO examine the private sector use of SSNs by businesses most likely to obtain and use them including information resellers, consumer reporting agencies (CRAs), and health care organizations. Specifically, our objectives were to (1) describe how information resellers, CRAs, and some health care organizations obtain and use SSNs and (2) discuss the laws and practices relevant to safeguarding SSNs and consumers' privacy. GAO makes no recommendations." (U.S. General Accounting Office)
Courts of Appeals Case Law Update
Summary of three recent benefits law cases at the federal appellate level. Excerpt: "In another 'legal versus equitable' relief case involving restitution, the Sixth Circuit held that a health plan could not, in federal court, recover from a participant medical expenses paid to the participant." (Southern Employee Benefits Conference)
Overview: DOL Class Exemption for Settlements
Excerpt: "The Department of Labor recently issued Prohibited Transaction Exemption 2003-39 that exempts the release of claims and extensions of credit in connection with certain settlements of litigation from prohibited transaction restrictions.... For settlements entered into after January 30, 2004, additional conditions apply in order for the exemption to be available." (Southern Employee Benefits Conference)
Stock Option Accounting: a Modest Proposal
Excerpt: "Why not expense part of the cost at grant and the rest at expiration?" (BusinessWeek Online)
Newly Posted Events
Retirement Plan Basics
in Wisconsin on May 11, 2004
presented by International Foundation (of Employee Benefit Plans, or IFEBP)
Trustees Training Program
in Nevada on May 3, 2004
presented by International Foundation (of Employee Benefit Plans, or IFEBP)
Health Plans, HIPAA, And COBRA Update
Nationwide on April 21, 2004
presented by ALI-ABA (American Law Institute-American Bar Association)
412(i) Bootcamp II
in Washington on July 29, 2004
presented by The 412(i) Company
Investment Basics
in Wisconsin on May 13, 2004
presented by International Foundation of Employee Benefit Plans
401(K) Plans
in Wisconsin on May 17, 2004
presented by International Foundation of Employee Benefit Plans
Certificate in Global Benefits Management
in Illinois on May 17, 2004
presented by International Foundation of Employee Benefit Plans
Washington Legislative Update
in California on May 17, 2004
presented by International Foundation of Employee Benefit Plans
Managed Accounts for 401(k) Plans: Avoid Inertia and Maximize Participant Earnings
Nationwide on March 3, 2004
presented by IOMA
ClearComp's Giant Seminar
in California on March 4, 2004
presented by ClearComp
ClearComp's Giant Seminar
in California on March 9, 2004
presented by ClearComp
Clearcomp's Giant Seminar
in California on March 2, 2004
presented by ClearComp
ClearComp's Giant Seminar
in California on March 11, 2004
presented by ClearComp
ClearComp's Giant Seminar
in California on March 16, 2004
presented by ClearComp
Newly Posted Press Releases
Treasury and IRS Issue Proposed Rules on Student Exception to FICA Employment Tax
(Internal Revenue Service (IRS))
Newly Posted or Renewed Job Openings
Consultant/Producer/Broker
for BP Benefits and HR Consulting/Outsourcing
in
Group Health Sales Representative
for Mutual of Omaha
in CO, GA, NC, OR, TX
Benefits Administrator (50-60K) No Relocation available
for Praxis Search LLC
in NJ
Internal Pension Consultant
for Ceridian
in FL
401(k) Professionals
for BeneTemps, Inc.
in CT, MA, NJ, NY
Assistant Plan Administrator
for ProPension, Inc.
in MI
Director of Marketing
for Charles Schwab & Co., Inc.
in CA
Relationship Manager
for AMVESCAP Retirement, Inc.
in CO, GA
Compliance Operations Unit Manager
for Hewitt Associates
in IL
Actuary
for Swerdlin & Company
in GA
Senior Rollover Consulting Group Associate
for New York Life Investment Management
in NJ
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