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July 27, 2004
Today's sponsor: Employee Benefits Institute of America Inc. (EBIA)

(Click on company name or banner to learn more.)

HSAs and More!
EBIA's Consumer-Driven Health Care & Fringe Benefits contains
comprehensive coverage of HSAs -- explaining the latest guidance
and providing practical examples. The manual also covers HRAs,
Archer MSAs, qualified transportation fringe benefit plans,
and has a chart comparing health FSAs, HRAs and HSAs. The manual
includes EBIA's expert analysis, copies of relevant statutes and
official guidance, compliance checklists, and sample forms.
Click Above to Learn More

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Detailed Overview of New Health Savings Account Regulations
Excerpt: "The guidance covers issues on individual eligibility for HSAs, provides examples of plans that will be considered high-deductible plans, clarifies the scope of 'preventive care,' provides guidance on calculating permissible contributions and distributions, addresses the 'comparability' nondiscrimination standard, rollovers, coordination between cafeteria plans and HSAs, and discusses various HSA administration issues. HSAs are established under IRC sec. 223." (Deloitte's Washington Bulletin)

California Regulator Rejects WellPoint-Anthem Merger
Excerpt: "California's insurance commissioner rejected on Friday the merger of WellPoint Health Networks Inc. and Anthem Inc., a move that could stall the $16.5 billion deal set to create the largest U.S. health insurer." (Reuters via Medscape; one-time registration required)

Medicare Releases Proposed Regs on Prescription Drug Benefit to Begin in 2006
Excerpt: "[T]he proposed regulations include four options aimed at keeping employers offering retiree drug coverage. The biggest carrot: Employers who don't drop retiree drug benefits after the Medicare law goes into effect in 2006 could qualify for an annual subsidy of $611 to $940 per retiree." (USA Today)

Limited-Benefit Health Insurance Policies: Public and Private-Sector Experiences (PDF)
6 pages. Excerpt: "The low demand for limited benefits to date in states that have authorized these plans exposes an important disconnect: Many employers believe that benefit exclusions are an acceptable way to achieve affordable health insurance coverage, but most would not want such limited coverage for themselves." (Academy Health)

Online Health Insurance Sites Growing in Popularity
Excerpt: "The Orange County Register on Sunday examined the increasing use of the Internet to purchase health insurance. According to the Register, online health insurance sites facilitate comparisons between health insurance policies, are easy to use and may help consumers find health plans with lower premiums." (KaiserNetwork.org)

Your Medical History on a Microchip
Excerpt: "Will your medical records be available if you end up in the emergency room after a car accident or heart attack? Probably not in time to help save your life, thanks to the current archaic system of paper records. The federal government announced ambitious plans last week to create a vast new information system ..." (Wall Street Journal via SFGate.com)

Employer Health Plan Nightmares ... and Other Things That Go Bump in the Night
Excerpt: "[I]f you can identify the intended benefits, the intended beneficiaries (e.g., employees and their families), and a procedure to apply for and receive benefits, then you probably have one or more ERISA welfare plans. Your company's welfare plans may be 'wrapped' together as one plan, or the company may have multiple welfare plans. Even if the benefits are provided solely by insurance contracts, there is a good chance that the company is the sponsor of an ERISA welfare plan." (Chang Ruthenberg & Long PC)

City of Boston Begins Drug Reimportation Program
Excerpt: "The city of Boston has launched a pilot program to allow city employees and retirees enrolled in its Massachusetts Blue Cross & Blue Shield plans to import prescription drugs from Canada." (Business Insurance)

Links to Items on Executive Comp, Benefits in General

Text of IRS Priority Guidance Plan for 2004-2005, Including Planned Benefits Regs and Rulings (PDF)
24 pages; listed projects include retiree health accounts in a profit sharing plan; coordination with Puerto Rico law for qualified plans; the default rollover of involuntary distributions; the staggered remedial amendment period; post severance elective deferrals; valuation of life insurance distributed from qualified plans; IRA abuses; more. (Internal Revenue Service)

The Nature of a Public Agency's Employee Benefits Commitment to Its Employees
Excerpt: "Governmental employers are now being forced to look at every available means, including the reduction of employer-paid benefits, as a way to 'stop the bleeding.' This article addresses several important legal issues that arise when a California public agency attempts to reduce the level of benefits that it provides to its employees." (Chang Ruthenberg & Long PC)

Bookmark: IRS Web Page on Abusive Employee Plans Transactions
Excerpt: "The IRS is engaged in extensive efforts to curb abusive tax shelter schemes and transactions. The Tax Exempt and Governmental Entities Division of the IRS, including the office of Employee Plans, participates in this IRS-wide effort by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes and promotions." (Internal Revenue Service)

Update on Close of FASB's Public Comment Period (PDF)
2 pages. Excerpt: "Since it appears likely that option expensing will be adopted and the final standard will be similar to the [exposure draft] issued on March 31, 2004, it is important for employers to develop a prospective strategy. The following are measures that employers should consider in anticipation of the final adoption of the standard: ..." (Frederic W. Cook & Co., Inc.)

Newly Posted Events

2004 Health Policy Orientation Program
in District of Columbia on October 25, 2004
presented by AcademyHealth

Get The Most Out of Your ESOP
in Missouri on October 4, 2004
presented by National Center for Employee Ownership

Introduction to ESOPs Seminar
in Hawaii on August 19, 2004
presented by National Center for Employee Ownership

Medicare Media Briefing
Nationwide on July 26, 2007
presented by Kaiser Family Foundation
Newly Posted Press Releases

CMS Proposed Regulations Will Encourage Employers to Continue Retiree Health Coverage
(American Benefits Council)

Treasury and IRS Issue 2004-2005 Priority Guidance Plan
(U.S. Department of Treasury)

HHS Proposes New Rules to Deliver Better Benefits and Savings on Drugs for Medicare Beneficiaries
(U.S. Department of Health & Human Services)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Plan Administrator
for Benefit Associates, Inc.
in CA

Client Relationship Manager
for PensionTrend, Inc.
in MI

HR Benefits Specialist Senior
for Allina Hospitals and Clinics
in MN

Retirement Plan Consultant
for Invesmart, Inc.
in OH

Actuarial Assistant
for McCready and Keene, Inc.
in IN

Health Benefits Project Manager
for Hewitt Associates
in TX

Participant Education Consultant
for The Vanguard Group
in PA

Third Party Administrator
for Redwood Administrators, Inc.
in NJ

Consulting Pension Actuary
for Alliance Benefit Group of Illinois, Inc.
in IL

401(k) Compliance Specialist
for Steele Retirement Plan Services, Inc.
in IA

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Editor and Publisher: David Rhett Baker, J.D.

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