| BenefitsLink Welfare Plans Newsletter |   |
October 13, 2004
Today's sponsor: Financial Research Associates, LLC
(Click on company name or banner to learn more.)
Made in America Taft Hartley Benefits Summit Financial Research Associates presents: The 2nd Annual Made in America Taft Hartley Benefits Summit February 6-9, 2005 in Palm Springs To Register call 800-280-8440 or visit www.frallc.com The summit will consist of concurrent tracks, one covering topical issues regarding DC/DB plans and the other covering current for health & welfare topics. Don't miss out, register today! All Administrators and Trustees save $1,000!
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
California Allowed to Sue Denny's Restaurant Chain Over Vacation Accrual Policy
Excerpt: "The U.S. Supreme Court on Tuesday let California use its labor laws to challenge Denny's Corp.'s policy of refusing to pay workers for accrued vacation time if they leave the restaurant company in less than a year." (San Francisco Chronicle)
Does the Americans with Disabilities Act Really Protect Alcoholism? (PDF)
At pp. 17-54 of 141-page document (published by American Bar Association's Section of Employment and Labor Law). (Attorneys Renee Parsons and Thomas J. Speiss III)
Blue Cross and Blue Shield of North Carolina Freebies and Spending Raise Brows
Excerpt: "Blue Cross and Blue Shield of North Carolina is dropping money freely this year -- giving away generic drugs, providing free flu shots, running a series of new television advertisements -- and the spending spree is raising questions among some of the insurer's members and industry analysts." (newsobserver.com)
Education, Plan Design, Leadership Support Can Boost Consumer-Driven Health Enrollment
Excerpt: "Although they have identical employee demographics, CDH enrollment at one company tops 50%, while just 5% of employees at the other company opt in. So what happened? Industry experts agree that three factors are critical for high enrollment in an optional CDH plan: continuous employee communication, visible support from senior staff and a plan design that can compete with existing options. However, myriad other factors also influence enrollment results." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
Blue Cross of North Carolina to Put Effort into Controlling Obesity
Excerpt: "Blue Cross' new Healthy Lifestyle Choices program will cover four weight-related physician visits each year, diagnostic tests related to obesity, consultations with dietitians and two pres.cription weight loss drugs." (The Herald-Sun)
Healthcare Benefits Emerge as Knottiest Issue in Union Contract Talks
Excerpt: "As director of the Federal Mediation and Conciliation Service, Peter Hurtgen runs an agency that tries to make peace in some 7,000 labor-management disputes each year. These days, one issue dominates such talks -- who should bear the costs of health insurance premiums ..." (San Francisco Chronicle)
Major Benefits Seen in Weight-Loss Surgeries
Excerpt: "Stomach reduction and gastric bypass surgery not only help the extremely obese lose weight, but can also alleviate Type 2 diabetes and return high cholesterol levels to normal, according to a new study reported today in the Journal of the American Medical Assn." (Los Angeles Times; one-time registration required)
Health Options Dizzying As Employers Give Employees Bigger and More Diverse Stake in Decisions
Excerpt: "Fasten your seat belts, Minnesotans. You're about to go on a health care roller-coaster ride. The days when you could simply unzip your October open-enrollment packet, find the health plan that covered your doctor and clinic, check a box and forget about it are ending. You might have to choose among 'health savings accounts,' 'health reimbursement arrangements,' 'tiered network health plans' -- if not this fall, then maybe next." (Pioneer Press)
Issue Brief: Health Savings Accounts and Other Account-Based Health Plans (PDF)
Excerpt: "The new analysis and overview of all the different health accounts is provided in the September EBRI Issue Brief .... It also deals with health reimbursement arrangements (HRAs), which are created by employers to give beneficiaries access to a fixed amount they can tap to pay medical expenses. All the plans share a focus on slowing or controlling employer health insurance cost increases by making beneficiaries more price sensitive." (Employee Benefit Research Institute)
Health Savings Accounts Slow to Gain Acceptance
Excerpt: "People around the nation are now taking part in the annual enrollment season for health care plans, but only a tiny fraction of employers are offering the new plans.... The UnitedHealth Group, for example, the nation's largest health insurer, representing employers who cover more than 18 million workers, expects only about 150,000 of those employees to choose health savings accounts for 2005." (New York Times; one-time registration required)
Bush Hints at Policy Shift on Canadian Drug Imports
Excerpt: "At last week's debate, President Bush hinted that he might allow imports of pres.cription drugs from Canada this year. But he and his administration have consistently taken a strong stance against such imports, citing safety concerns, which have not abated." (The New York Times; one-time registration required)
Employers' Responses to Play-Or-Pay Mandate: Analysis of California's Health Insurance Act of 2003
Excerpt: "This paper applies findings from the literature and an economic analysis to California data to estimate the potential reduction in wages, quantify the dispersion of risk across employers, and discuss other employment effects. These employer responses will reduce the number of uninsured people in California who gain eligibility for health coverage under SB 2." (Health Affairs)
Exhibit Focuses on Tragedy Without Health Insurance
Excerpt: "The show includes 20 black-and-white photographs with accompanying text, illustrating the impact on people's lives when they don't have access to health care." (Houston Chronicle)
Bush, Kerry Trade Jabs on Healthcare Proposals
Excerpt: "President Bush charged Tuesday that Democrat John F. Kerry was backing a 'big-government takeover' of healthcare ... The Massachusetts senator fired back with a television ad that said Bush had blocked lower pres.cription drug prices." (Los Angeles Times; one-time registration required)
The Big Business of Health Care
10/6/02. Excerpt: "Investigative reporters Donald Barlett and James Steele's new book is Critical Condition: How Health Care in America Became Big Business, and Bad Medicine. Bartlett and Steel have worked together for 30 years, winning two Pulitzer Prizes. They are currently editors-at-large at Time magazine." (National Public Radio)
Text of American Bar Association Report on Contingent Fees In Medical Malpractice Litigation (PDF)
68 pages, dated Sept. 20, 2004. Excerpt: "Attorney contingent fees have again become the focus of efforts by medical professionals and allied organizations to reduce the costs of medical liability. These efforts ... seek to impose limits on the fees lawyers may charge clients in successful medical malpractice claims and actions. They are premised on the belief that such limits will ultimately reduce costs associated with medical negligence claims." (American Bar Association)
HIPAA Covered Entities Now Deal With Variety of Employee Misdeeds
Excerpt: "While a relatively small percentage have had to respond to the Office for Civil Rights (OCR), more entities have grappled with garden-variety infractions by employees, such as unauthorized access and misdirected faxes, and are gaining experience disciplining errant employees." (REPORT ON PATIENT PRIVACY via AISHealth.com)
The Insurance Policy You Ought to Consider: Long-Term Care
Excerpt: "What do you get when you buy long-term-care insurance? An unproven product sold by an industry in turmoil that will cost you a small fortune in premiums -- with no guarantee those premiums won't go even higher. And yet, despite all that, I think folks age 50 and older should at least consider long-term-care insurance." (Wall Street Journal via SFGate.com)
Part D Drug Benefit Could Get Few Takers, but Some PBMs, Insurers Eye Fallback Plans
Excerpt: "The Medicare Part D drug benefit could represent hundreds of billions of dollars in new business for pharmacy benefit managers (PBMs) and health plans. But the tight timelines, untested benefit designs and heightened risks could reduce the number of firms willing to take on the risk for insuring seniors' ambulatory drug needs. Some PBMs and insurers are setting their sights on a lesser-known contingency option: the fallback drug-only plan." (MANAGED CARE WEEK via AISHealth.com)
Links to Items on Executive Comp, Benefits in General
Analysis: Nonqualified Deferred Comp Legislation Requires Immediate Consideration of Existing Plans (PDF)
6 pages; useful question-and-answer format. Excerpt: "[T]he legislation is expected to create $158 million in tax revenues in 2005 and $1.05 billion in tax revenues over the next ten years from nonqualified deferred compensation plans. To avoid being part of these revenue numbers, plan sponsors must act promptly." (Womble Carlyle)
Overview: New Legislation to Impact Nonqualified Deferred Compensation (PDF)
4 pages. Excerpt: "The Act does not include provisions previously included in the Senate bill (the 'Jumpstart Our Business Strength Act of 2004,' S. 1367) that would have prohibited the deferral of stock option and restricted stock gains and imposed restrictions on investment options under nonqualified deferred compensation plans." (LeBoeuf, Lamb, Greene & MacRae, L.L.P.)
FASB Delays Stock Options Expensing Rule
Excerpt: "A controversial measure that would have made expensing of stock options compulsory has been put off for six months, the Financial Accounting Standards Board announced on Wednesday." (Financial Times)
EBRI Offers Cafeteria Plan/401(k) Plan Federal Tax Savings Calculator for Employees
Excerpt: "Increase participation by providing your employees with a powerful, easy-to-use tool to estimate their federal tax savings from participating in your benefit plans. Our calculator is a 'must have' tool for every employer that sponsors a cafeteria plan, transportation plan, and/or a 401(k) or 403(b) plan and for anyone that designs or administers plans for others." (Employee Benefits Institute of America)
Carol Calhoun's Employee Benefits Site Completely Redesigned. Some new features:
Search form on every page; Official documents; See popular features; State retirement systems updated; Dated list of publications; Site map (Calhoun Law Group, P.C.)
2005 Vendor Directory from Workforce.com
Excerpt: "Browse or keyword-search through 2,863 product and service listings (2,688 companies) in 140 categories.' Categories include Benefits Administration, Pension Administration/Management, Financial/Investment Planning, Pension Plan Design/Consultants, Third-party Administrators (Health Benefits), more. (Workforce.com)
Full Text of Fall 2004 Issue of NRLN Focus Published by the National Retiree Legislative Network (PDF)
4 pages. The issues includes two articles: A View from Washington and NRLN Releases Health Care Reform Report. (National Retiree Legislative Network)
How Will We Pay for Social Security and Medicare for the Next 75 Years?
Excerpt: "Social Security and Medicare are making future promises much greater than the taxes that will be collected at current rates. Unfortunately, some policymakers seem to be intent on making the problem worse, not better. Reforms are needed that create more saving today for retirement and increase the nation's capital stock." (National Center for Policy Analysis)
Newly Posted Events
"Getting It Right": Know Your Fiduciary Responsibilities
in Washington on November 9, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
"Getting It Right": Know Your Fiduciary Responsibilities
in Texas on December 2, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
15th Annual National Institute on Health and Welfare Benefit Plans Seminar
in District of Columbia on October 21, 2004
presented by McDermott Will & Emery LLP
Controlling Benefit Costs: From Tactical to Strategic
in New York on October 15, 2004
presented by WEB-New York
Final COBRA Notice Regulations
in New York on October 22, 2004
presented by WEB-New York
HRA/Consumer Driven Health
Nationwide on October 13, 2004
presented by National Association of Professional Benefit Administrators (NAPBA)
HSAtoday(TM) Concept Seminar
in Arkansas on October 14, 2004
presented by DataPath, Inc.
New York University 63rd Institute on Federal Taxation
in New York on October 17, 2004
presented by McDermott Will & Emery LLP
Overview of Top-heavy Plan Rules and Requirements
Nationwide on November 15, 2004
presented by McKay Hochman
Qualified Domestic Relation Order (QDROS) and Qualified Medical Child Support Orders (QMCSOs)
in New Jersey on October 19, 2004
presented by Worldwide Employee Benefits Network (WEB)
Newly Posted Press Releases
Bonnie Whyte appointed ECFC President - Named to ECFC Board of Directors
(Employers Council on Flexible Compensation (ECFC))
Health Care Costs Show Signs of Moderating, but Still Outpace Inflation
(Hewitt Associates LLC)
Disaster Relief Announcements 04-25 through 04-32
(Pension Benefit Guaranty Corporation (PBGC))
HSAtoday(TM): DataPath's HSA Solution
(DataPath, Inc.)
Retirement Plan Participation Ends Decline; Increases for Full-Time, Full-Year Workers
(Employee Benefit Research Institute (EBRI))
Major Medical Plan Outsources Administration and Plan Management to Gilsbar, Inc.
(Gilsbar, Inc.)
With Flu Vaccination Scarce, Companies Should Take Special Steps to Combat 'Presenteeism' This Flu Season
(CCH Incorporated)
Benefits & Compensation Digest Examines Retirement Timing of Married Couples
(International Foundation of Employee Benefit Plans)
Guide to Qualified Retirement Plans: A Plain Language Primer Discusses Retirement Plans at a Basic Level
(International Foundation of Employee Benefit Plans)
New Survey Results Highlight Severance Policies
(International Foundation of Employee Benefit Plans)
Assist America Teams with TD International to Expand Security Capabilities - SecurAssist® Addresses The Complexities Of The Business Traveler
(Assist America, Inc.)
Chiropractic Health Plan Benefits Proven to Substantially Reduce Employers' Annual Healthcare Expenses
(American Specialty Health (ASH))
Newly Posted or Renewed Job Openings
DB / DC Administrator
for Howard Simon & Associates, Inc
in IL
Marketing Communications Director
for Diversified Investment Advisors
in NY
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