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September 3, 2004
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Issue Brief: Establishing a Business Case for Improving Health Care (PDF)
12 pages. Excerpt: "[T]he authors argue that health care organizations need to be able to make a 'business case' for improving quality-- a compelling rationale for financial investment in quality improvement programs. The authors' framework ... is organized around three broad areas: direct financial considerations, strategic considerations, and internal organizational considerations.... [T]hey offer a total of 10 specific business case arguments ... for investing in quality improvement." (Commonwealth Fund)

Bipartisan Consensus Grows on the Need for Greater Investment in Health Care Information Technology (PDF)
2 pages. Excerpt: "Large employers and other purchasers stand to benefit from cuts in costs and from quality improvement in the health care system through the use of technology." (HR Policy Association)

Florida Blue Cross Doctors to Treat Patients Online via Web-Based Program, Launched in California
Excerpt: "Blue Cross Doctors to Treat Patients Online; Web-Based Program, Launched in California, Is the First in Florida Some doctors will be making house calls -- online -- under a new program from Blue Cross and Blue Shield of Florida. The Jacksonville-based health insurer is launching the first program in the state to reimburse physicians for online medical consultations." (The Florida Times-Union)

Court: Separate COBRA Election Notice Not Required for Dependent Child Living at Home
Starr v. Metro Systems, Inc. (D. Minn. 2004). Excerpt: "Although the employer claimed that it mailed a COBRA election notice to the employee's last-known address, the employee asserted that neither he nor his daughter ever received it. Consequently, no election was made to continue health coverage. Shortly after coverage terminated, the daughter's appendix ruptured." (Employee Benefits Institute of America Inc. (EBIA))

Overview: Guilty Plea Results in First Conviction for Violation of HIPAA Privacy Rules
Excerpt: "[T]he U.S. Attorney's office in this case has taken the position that HIPAA's criminal penalties ... can be imposed on any person. It's interesting to see HIPAA's privacy rules used in a context usually thought of as identity theft. The information that was disclosed ... would not in all cases fall within the definition of 'individually identifiable health information' ..." (Employee Benefits Institute of America Inc. (EBIA))

Tenth Circuit Clarifies 'Sliding-Scale' Review for Decisionmakers With Conflict of Interest
Excerpt: "After noting that a sliding-scale standard of review applied if the decisionmaker had a conflict of interest, the court clarified how the sliding scale worked--it adopted a 'two-tiered' approach under which (1) in all conflict of interest cases, the plan has the burden of proving that the decision was not arbitrary and capricious; and (2) in cases where the conflict is sufficiently serious, even less deference is given to the decision." (Employee Benefits Institute of America Inc. (EBIA))

HMOs to Pay More to End Doctor Suits After Ruling
Excerpt: "HMOs will face a steeper price tag to settle a class action suit by doctors claiming they were shortchanged payment, after a court denied the industry's bid to block the lawsuit, analysts said on Thursday." (Reuters via Yahoo! News)

Opinion: Lawsuits Against Not-for-Profit Hospitals Wrong Target on Health Care
Excerpt: "At a time when we should be preserving our nation's dwindling health care resources, a wave of class-action lawsuits likely to have just the opposite effect is being filed against not-for-profit hospitals across the country,...." (The Washington Post; one-time registration required)

Marsh-Mercer Merger Will Create Largest Base of Health Care Purchasers Besides Feds
Excerpt: "Marsh and Mercer are merging benefit practices to create the world's largest employee benefit consultancy, with more than $1 billion in health and benefits revenue, by Jan. 1, 2005." (BenefitNews.com)

Only the Strong Hospitals Will Survive According to Report on Hospital Financing
Excerpt: "Many small and midsize hospitals will need to spend money smarter and focus on their strengths in order to survive, according to the Financing the Future project, which analyzed healthcare finance. … a joint effort of the Healthcare Financial Management Association and GE Commercial Finance." (Modern Healthcare)

Most Hospitals Are Posting Data on Care
Excerpt: "More than 98 percent of hospitals in the United States are reporting quality-of-care data for treating heart attack, heart failure and pneumonia, the Centers for Medicare and Medicaid Services said yesterday." (Reuters via The New York Times; one-time registration required)


Links to Items on Executive Comp, Benefits in General

Major Changes in Deferred Compensation and Stock Options Accounting Possible Before Year's End
Excerpt: "Two significant changes that affect executive compensation--legislative restrictions on nonqualified deferred compensation plans and a mandatory standard on stock option expensing--will be in play this fall. Meanwhile, the issue of permitting relocation loans under Sarbanes-Oxley has been raised again on Capitol Hill." (HR Policy Association)

Summary: IRS Reproposes "Source" Rules for Compensation Attributable to US and Foreign Services (PDF)
2 pages. Excerpt: "In early 2000, the IRS issued a proposed regulation regarding the proper 'sourcing' of compensation (including fringe benefits) for U.S. taxpayers and nonresident aliens. The proposed regulation would replace the 'facts and circumstances' test for individuals that work both within and without the United States during the year with a required allocation of the compensation based on time spent here and abroad." (Groom Law Group via American Benefits Council)


Newly Posted Events

Crafting an Appropriate Response to the New Medicare Prescription Drug Regulations
Nationwide on September 2, 2004
presented by Hewitt Associates LLC
Newly Posted Press Releases

New Tax-Advantaged Health Accounts: Options Abound, But Impact Still Unknown
(Employee Benefit Research Institute (EBRI))

Failed Plan: Bush Plan Would Increase the Deficit While Doing Nothing to Help Middle-Class Families Save
(Kerry-Edwards 2004)
Newly Posted or Renewed Job Openings
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