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March 23, 2004 - 8,783 subscribers
Today's sponsor: ProAct Technologies

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03/25/2004 11:00am - 12:00pm PST
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(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Aetna, Cigna Get High Court Support on Patient Suits
Excerpt: "Aetna Inc. and Cigna Corp. found support at the U.S. Supreme Court in their bid to shield health- maintenance organizations from multimillion-dollar patient lawsuits over coverage decisions.... Several justices expressed doubt that HMOs were making medical judgments, and thereby opening themselves to suit, by refusing to pay for treatments." (Bloomberg)

HMO 'Horror Story' Comes to Supreme Court
Excerpt: "Patients like Ruby Calad, who claims her HMO refused to pay for care one of its own doctors recommended, can be sympathetic figures in court. Juries often make large awards in cases where a big company seems to have taken advantage of a little victim. That's the main reason why insurers want to move cases like Calad's into federal court, where judgments result in relatively little or no money, and the reason why the hysterectomy patient's story made its way to the Supreme Court." (AP via Washington Post; one-time registration required)

Federal Government Trustees Weigh Cost of Medicare Law
Excerpt: "An existing surplus built up by taxes on baby boomers is likely to start dwindling by the end of the decade just as they start retiring, said analysts across the political spectrum in anticipation of Tuesday's annual report by government trustees of the Medicare and Social Security programs." (AP via Washington Post; one-time registration required)

Despite Strong Bipartisan Support, Employer Subsidies Get Swept Into Attacks on New Medicare Law
Excerpt: "Recent attacks on the new Medicare drug law in the media have included negative press articles about the provision of a tax-free subsidy for those companies that retain retiree drug coverage after enactment. The law provides for the subsidy to be paid to companies that offer qualified retiree pres.cription drug coverage that is at least actuarially equivalent to the standard Medicare drug benefit, effective in 2006." (HR Policy Association)

Subsidies To Employers Under Medicare Law Could Save Companies Combined $11.8 Billion
Excerpt: "Eighteen large U.S. companies have estimated in their 2003 financial reports that the new Medicare law would save them more than a combined $11.8 billion in retiree benefit costs, according to a Bear Stearns report released on Monday, Dow Jones/Wall Street Journal reports." (KaiserNetwork.org)

Democrats Plan To Focus on Cost of Private Insurer Participation in Renewed Attacks on Medicare Law
Excerpt: "During Wednesday's House Ways and Means Committee hearing on the Medicare legislation, Democrats are planning to 'zero in' on higher Medicare payments to private health plans, called for under the law and detailed in documents provided Friday to Congress by CMS chief actuary Richard Foster, CongressDaily reports." (KaiserNetwork.org)

Former Employee May Pursue Claim for Failure to Provide COBRA Election Notice
Excerpt: "The employer argued that no election notice was required because the employee had signed a release and was already enrolled in and receiving COBRA coverage before the deadline for providing an election notice. The court rejected this argument and found that (1) the employee's release did not vitiate the duty to provide a COBRA election notice because it was not clear whether the employee understood all of her COBRA rights when she signed the release ..." (Employee Benefits Institute of America (EBIA))

Be a Part of Spencer's 2004 COBRA Survey
Spencer Benefits Reports is now collecting information for its 2004 survey of COBRA continuation of health care coverage. Survey forms are available online and by mail. Spencer Benefits Reports has been collecting and analyzing COBRA survey information since 1990. This biennial survey requests information concerning the costs, administrative procedures, and problems associated with COBRA. The information provided will be collated and published by Spencer Benefits Reports. (Spencer Benefits Reports)

Opinion: Let's Fix Trade Health Insurance Tax Credit Before Expanding It
Excerpt: "Some federal policymakers are now considering expanding eligibility for this health insurance tax credit to more of the uninsured.... Early reports concerning the performance of the HCTC, however, have been disappointing. Enrollment in the tax credit is very low.... This minimal enrollment appears to be the result of major flaws in the design and implementation of the credit." (Center on Budget and Policy Priorities)

Differences Between HRAs and HSAs: Beyond the Basics
Excerpt: "This chart compares Health Reimbursement Accounts under the guidance issued in 2002 to the Health Savings Accounts enacted in the Medicare Pres.cription Drug, Improvement and Modernization Act of 2003. It also looks at how other laws impact the two arrangements." (Greta E. Cowart of Haynes and Boone, LLP)

HIPAA Compliance for Small Group Health Plans: Four Steps for Determining What You Need to Do
Excerpt: "April 14, 2004 is the Health Insurance Portability and Accountability Act (HIPAA) privacy compliance date for small group health plans (group health plans with 'receipts' of less than $5 million for the last plan year). The HIPAA privacy regulations impose use and disclosure rules on 'covered entities,' including group health plans sponsored by employers, such as medical, dental, and vision plans, as well as health flexible spending accounts and many employee assistance programs." (Davis Wright Tremaine LLP)

Overview: House Republicans Propose HSA Tax Breaks
Excerpt: "Republican lawmakers this month introduced a bill that would allow individuals to deduct 100% of high-deductible health insurance premiums on their taxes when the coverage is purchased in conjunction with a health savings account (HSA)." (Inside Consumer-Directed Care via AISHealth.com)

Full Text: Medicare Fact Sheets
Excerpt: "These fact sheets provide basic information about Medicare and the people it serves (Medicare at a Glance), the new drug law (Medicare Pres.cription Drug Law), and Medicare Advantage (formerly Medicare+Choice)." (Kaiser Family Foundation)

Links to Items on Executive Comp, Benefits in General

Plan Must Pay Civil Penalties and Attorneys' Fees for Taking 2 Years to Provide Requested Documents
Excerpt: "This case is a must-read for any plan whose records are 'in disarray'.... Even though the plan had a form on file with the participant's election of the single-life annuity and the spouse's signature waiving the qualified joint & survivor annuity, the spouse's signature was neither witnessed nor notarized." (Employee Benefits Institute of America (EBIA))

Additional Coverage on Mike Gordon: Chief ERISA Architect Dies
3/16/04 issue. Excerpt: "Mr. Gordon became the 'quarterback' who worked tirelessly to muster the political and public support needed to pass ERISA, a bill that had powerful constituencies opposed to many of its key provisions, says Frank Cummings, former chief of staff to former Sen. Jacob K. Javitz, R-N.Y." (Human Resource Executive)

Newly Posted Events

NCPERS 2004 Annual Conference and Exhibition
in California on May 2, 2004
presented by National Conference on Public Employee Retirement Systems

Health Care Quality Initiatives in Northeast Ohio
in Ohio on April 15, 2004
presented by Worldwide Employee Benefits Network (WEB) - Cleveland Chapter

Automatic Rollovers: The New DOL Guidance
Nationwide on April 8, 2004
presented by ABA Joint Committee on Employee Benefits
Newly Posted Press Releases

Older Workers Would Delay Retirement if Employers Offered Phasing, Watson Wyatt Survey Finds
(Watson Wyatt)

Evolution Benefits And Milliman USA Enter Into Exclusive Marketing Agreement To Offer FSA Assist(TM) Product
(Evolution Benefits)

The412iCompany to host National Teleconference on New 412i Regulations
(The 412(i) Company)

ACLI & CSC To Examine Cost of Insurance Regulation
(American Council of Life Insurers)

PensionOnline Announces Important Enhancements to its One Man (k) Analysis™ Product
(Metrics Partners)

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