| BenefitsLink Welfare Plans Newsletter |   |
September 20, 2004
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Employers Ponder Health Savings Account Investment Options
Excerpt: "Health savings account holders now can invest in certain types of coins, but not art or wine, according to the latest HSA guidance from the IRS. The long-awaited guidelines have answered many of the questions employers needed to know to decide whether to adopt HSAs. The rules also give HSA providers the go-ahead to push their products forward. But the finer points on what kinds of investment options an HSA participant can expect still need to be decided." (Employee Benefit News)
Health Plans Try 'Pay for Performance' Rewards for Doctors
Excerpt: "For more than a year, auditors for six California health plans have been analyzing data from patient encounters with 45,000 doctors. They rated the doctors' adherence to some basic guidelines for good care, with extra points for patient satisfaction and investing in new technology." (Wall Street Journal via SFGate.com)
Consumer-Driven Health Care Is Still Not a Big Seller With Employees
Excerpt: "Though most companies and plan providers are talking about plans that rein in costs by giving control to employees as health care shoppers, the fact is, a tiny fraction of employees are opting for consumer-driven plans, according to Hewitt Associates, a human resources services company based in Lincolnshire, Ill." (East Bay Business Times via bizjournals)
Court Reviews Termination of LTD Benefits Less Deferentially When Evidence of 'Procedural Bias'
Excerpt: "An individual receiving benefits under her former employer's LTD plan lost those benefits after a periodic review during which it was determined (apparently based at least in part on a report that was not relevant) that she was no longer totally disabled." (Employee Benefits Institute of America Inc. (EBIA))
Insurer Loses Deferential Standard of Review After Failing to Consider Social Security Record
Excerpt: "In reaching its decision, the insurer relied exclusively on medical records from the doctors that the participant had listed on the claim forms as treating physicians. The participant's Social Security medical records (which included a report by a psychiatrist) were not obtained or considered, even though the insurer had required the participant to authorize release of those records to the insurer." (Employee Benefits Institute of America Inc. (EBIA))
Is the Supreme Court Making Employee Health Insurance Law National, Not Local?
Excerpt: "Last week, President Bush claimed that the Democrats, if they had their way, would 'nationalize' health care in the United States. The Democrats rejected this charge, of course--it is well-known in political circles that Americans are deeply opposed to a national health care program, and prefer to keep things local." (Anthony J. Sebok on FindLaw)
Overview: IRS Releases Final Versions of HSA/Archer MSA Reporting Forms
Excerpt: "The IRS has released final versions of two reporting forms for trustees and custodians of HSAs and Archer MSAs. Form 1099-SA ('Distributions from an HSA, Archer MSA, or Medicare+Choice MSA') will be used to report total distributions made and Form 5498-SA ('HSA, Archer MSA, or Medicare+Choice MSA Information') will be used to report all contributions received, including rollover contributions." (Employee Benefits Institute of America Inc. (EBIA))
Language Education Classes Offer Global Appeal As an Employee Benefit
Excerpt: "...as the world gets smaller, language education - offered either as a benefit to employees or as part of a mandatory training program - is on the rise. 'We've seen an increased demand for English language training as a benefit among our clients,' observes Mark Engelter, director of marketing at GlobalEnglish Corp., which provides online English language instruction for more than 300 global companies." (Employee Benefit News)
As a Voluntary Benefit, Supplemental Medical Plans Serve As Antidote to High Costs and Complexity
Excerpt: "While supplemental medical benefits aren't a priority for the average employee or a determining factor in recruitment and retention, there's little doubt that these unsung policies can add considerable value, notes Greg Goggans, director of benefits for Wal-Mart Stores, Inc., in Bentonville, Ark., the world's largest retailer." (Employee Benefit News)
Employee Needs Should Shape Dental Insurance Group Plan
Excerpt: "Small employers are less likely to offer dental insurance to their employees because of high costs, according to Evelyn Ireland, executive director of the National Association of Dental Plans." (The Business Journal via bizjournals)
Vanishing Middle-Class Jobs: Income Gap and Uncertainty Cause More U.S. Families to Struggle
Excerpt: "Over the next several months, The Washington Post, in an occasional series of articles, will explore the vast changes facing middle-income workers and the consequences for businesses and society." (The Washington Post; one-time registration required)
Towers Perrin Legislative Tracking Chart: Health and Welfare Issues: Updated September 16, 2004 (PDF)
Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Dutch Government Plans to Overhaul Its Health Insurance System in 2006
Excerpt: "The Dutch government wants to introduce one standard compulsory health insurance system by 2006, with a bigger role for insurance companies. Health Minister Hans Hoogervorst on Friday sent parliament a law proposal to parliament that will end the compulsory national health fund, which has been in place since 1941." (Reuters via Medscape)
Canada Agrees to Increase Spending on Its Health Care
Excerpt: "Prime Minister Paul Martin gained a major victory for his flagging government early Thursday by reaching an agreement with provincial and territorial leaders that would substantially increase federal spending for Canada's ailing $60 billion national health care system." (The New York Times; one-time registration required)
Overview: HHS Extends Interim Final Rule for Imposition of Civil Penalties for HIPAA Violations
Excerpt: "Civil money penalties ... of up to $100 per violation (with a maximum of $25,000 per calendar year for violations of the same requirement) may be imposed on a covered entity for violations of HIPAA's administrative simplification provisions (including privacy, security, transactions and code sets, and unique health identifiers). In April 2003, HHS published an interim final rule ... the rule was set to expire on September 16, 2004." (Employee Benefits Institute of America Inc. (EBIA))
Hispanic Groups Cite Language as Obstacle to Health Care According to Survey
Excerpt: "A language barrier is keeping the South's rapidly growing Hispanic communities from getting much-needed medical care, and more interpreters are needed in the health care system, Hispanic organizations said Friday." (AP via The Washington Post; one-time registration required)
Companies Battle Healthcare Costs with Employee Fitness
Excerpt: "Workers at Ceridian Corp. walked the state of Minnesota this summer without ever leaving the Twin Cities ... 'The goal was to get people who are pretty sedentary to get up and get moving,' said Peggy Hammond, director of employee benefits at Bloomington-based Ceridian (NYSE:CEN)." (The Business Journal via bizjournals)
The New Corporate Villain: Drugmakers?
Excerpt: "Big Pharma is in danger of joining Big Oil and Big Tobacco as one of the bad boys of American industry. A slew of revelations have stung drugmakers in recent months - from charges of hiding unflattering clinical trials to studies showing a link between the use of antidepressants in children and suicidal thoughts. The companies' stance against allowing Americans to buy cheaper drugs in Canada has further eroded public support." (Christian Science Monitor)
Opinion: United States Health Care Funding System Is Broken
Excerpt: "Media reports our health-care system is 'broken' and 'threatened with meltdown' are hardly surprising in view of costs soaring fivefold the rate of inflation and with 45 million Americans uninsured for medical care." (The Washington Times)
OMB Says Medicare Drug Law Could Cost Still More than White House Estimates
Excerpt: "President Bush promised Congress that his Medicare pres.cription drug benefit would cost no more than $400 billion over 10 years, but once the legislation was enacted, federal actuaries boosted the estimate to $534 billion. Now, Bush administration projections indicate that the cost could be considerably higher." (The Washington Post; one-time registration required)
Overview: 2005 Medicare Premiums, Deductibles and Coinsurance
Excerpt: "On September 4, 2004, the Centers for Medicare & Medicaid Services (CMS) announced the following changes to the Medicare premiums, deductibles and coinsurance paid by beneficiaries that become effective on January 1, 2005. The changes are summarized in the chart below:" (The Segal Company)
Links to Items on Executive Comp, Benefits in General
Negotiations and Concessions Provide Difficult Choices for Airline Union Members
Excerpt: "Leonard Robinson, who put in 30 years as a mechanic at Pan American World Airways, has a message for his counterparts at US Airways, Delta, United and other struggling airlines pressing their workers for concessions: do not wait until it is too late." (The New York Times; one-time registration required)
US Airways Said to Plan to Ask Court for Temporary Pay Cuts for Workers
Excerpt: "US Airways plans to ask a federal bankrup.tcy judge on Oct. 7 to impose temporary pay cuts on its workers unless it can reach agreement with its unions before then, people who have been briefed on the company's strategy said yesterday." (The New York Times; one-time registration required)
Louisiana Voters Approve Ban on G.ay Marriage and Civil Unions
Excerpt: "Amendment opponents vowed to fight the legislation in court. They said it put in danger domestic partner benefits provided by private companies and local governments, including the city of New Orleans." (Reuters via The New York Times; one-time registration required)
Hot Issues Will Go Directly to State Voters on Election Day: G.ay Marriage Among Initiative Questions
Excerpt: "Election Day will offer voters in more than 30 states an opportunity to vent their feelings on a variety of social and legal issues, from same-sex marriage to bear baiting to caps on medical malpractice awards." (The Washington Post; one-time registration required)
Executive Pay: the Lasting Investor/Corporate Governance Battle Cry
Excerpt: "Big-ticket executives and the directors who bankroll them will be top targets for activist shareholders as the proxy campaigns for next year's annual corporate meetings get under way, governance experts predict." (Reuters via The New York Times; one-time registration required)
Outlook for Benefits Under a 'Fairer' Tax Code
Excerpt: "Thanks to the TaxProfBlog for the pointer to this blog which posts a document ... providing proposals for possible avenues of tax reform that might be utilized in trying to achieve a 'fairer' system. The document provides some insight into how retirement plans and other benefits might be affected in such proposal." (Attorney B. Janell Grenier on BenefitsBlog.com)
Senate Committee Provision Requires Employers Comply With Old & New White Collar Overtime Rules
Excerpt: "In the past two weeks, the House and Senate have passed politically-motivated amendments to their respective versions of the FY 2005 DOL funding bill that would impede DOL enforcement of, but not repeal, the new FLSA 'white collar' regulations." (HR Policy Association)
Towers Perrin Legislative Tracking Chart: Human Resource Issues: Updated September 16, 2004 (PDF)
Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Birth Dearth: An Examination of the Potential Consequences of the Worldwide Population Implosion
Excerpt: "Remember the population bomb? The new threat to the planet is not too many people but too few." (Newsweek via MSNBC News)
California County Takes Hit from Surprising Source
Excerpt: "[A] key factor that drives up county costs and comprises about half of the county's $633 million in annual expenditures [is] salaries and benefits for more than 4,000 employees. Those costs have grown 39 percent in the last five years, with 70 percent of that growth coming from salaries alone." (The Lompoc Record)
Newly Posted or Renewed Job Openings
Group Proposal & Underwriting Manager
for CUNA Mutual Group
in WI
Retirement Project Manager
for Hewitt Associates
in IL
Benefits Systems Analyst
for Hewitt Associates
in IL
Health Benefits Project Manager
for Hewitt Associates
in IL
401(k) Administrator
for Rockford Pensions, LLC
in
Account Manager- H&W
for Charles W. Cammack Associates, Inc.
in NJ, NY
Pension Administrator - Defined Benefit
for American Express Tax & Business Services
in AZ
Business Development Manager
for Transamerica
in CA
EMPLOYEE BENEFITS ANALYST - 2 to 5 Years Experience
for Employee Benefits Brokerage Firm
in CA
ERISA Attorney
for Employee Benefits Institute of America Inc. (EBIA)
in WA
Benefits Marketing/Sales Support Specialist
for The Melita Group
in CA
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