| BenefitsLink Welfare Plans Newsletter |   |
October 18, 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)
IRS Announces 242 Nonbank Trustees and Custodians for HSAs and Archer MSAs (PDF)
Excerpt: "Announcement 2004–72, page 650 [Internal Revenue Bulletin]. Nonbank trustees; section 1.408–2(e) of the regulations. This announcement contains a list of entities previously approved to act as nonbank trustees and nonbank custodians within the meaning of section 1.408–2(e) of the regulations. In addition, the announcement contains instructions on how errors in the list may be corrected. Announcement 2003–54 updated and superseded." (Internal Revenue Service)
Perspective: Proper Drafting Language Required to Avoid Coverage of Medical Expenses in Plan
Excerpt: "One of the by products of our society's increased consciousness of the problem of obesity is the focus upon the surgical procedures for addressing the problem, such as gastric bypass, gastric stapling, and intestinal bypass. Because these procedures are expensive, a medical plan may wish to exclude them from coverage and, because ERISA does not regulate the content of an employee benefit welfare plan, it may generally do so." (Winston & Strawn)
Health Insurance Coverage Tax Credit Goes Largely Unclaimed on Income Tax Returns
Excerpt: "Congress in 2002 enacted the health coverage tax credit to cover 65 percent of the health insurance premiums of those eligible. But despite efforts by Bush administration and state-level officials to publicize the benefit, only a small fraction of the expected beneficiaries have claimed the credit, officials said." (The Washington Post; one-time registration required)
Rising Health Costs Resonate for Voters-- the Politics of the U.S. Health Care System
Excerpt: "In this swing state, the Kopeckis represent the kind of voters political strategists are watching closely as the presidential election draws near: middle-class families worried about the economy and pocketbook issues--especially health care, a subject frequently discussed by President Bush and Sen. John Kerry in the past month.' (Chicago Tribune; one-time registration required)
Opinion: Health Care-- The Candidates Promise New Initiatives to End Patchwork Health Care System
Excerpt: "Given a clean slate, no one--repeat, no one--would design a stupid health system like ours. We brag about it as being 'the best,' and it does indeed deliver mostly competent care. But a system? Forget it. Every year we spend billions of additional dollars, yet cover a smaller portion of the sick. Massive public subsidies and costly premium payments vanish into the dark pit of private-sector bureaucracy, crazed administrative rules, hard-sell marketing and inefficient care." (Jane Bryant Quinn in Newsweek)
Consumer and Other Groups Question Industry-Paid Doctors Who Promote Medical Guidelines
Excerpt: "Consumer groups and others now are questioning not only the advice these doctors gave but also their fundamental ability to act in the public's best interest. It comes as some of these companies lobby the government to let drugs at the center of this controversy - statins such as Lipitor and Zocor - be sold over the counter. Prominent doctors with ties to statin makers are urging approval." (P via The Washington Post; one-time registration required)
American Medical Association Says Federal Government Should Negotiate on Drug Prices
Excerpt: "The American Medical Association says the government should negotiate directly with drug manufacturers to secure lower prices on pres.cription medicines for the nation's elderly." (The New York Times; one-time registration required)
Importing Less Expensive Drugs Not Seen as Cure for U.S. Woes
Excerpt: "It may make political sense to point to Canada as a solution to high pres.cription drug prices in the United States. But many economists and health care experts say that importing drugs from countries that control their prices would do little to solve the problem of expensive drugs in the United States, .... Even the nonpartisan Congressional Budget Office estimated that allowing Canadian drug imports would have a 'negligible' impact on drug spending." (The New York Times; one-time registration required)
Overview: New HIPAA Security Rule Requires Rugged Computer Security Framework
Excerpt: "Health-care organizations must comply with the Health Insurance Portability and Accountability Act security rule by April 2005, by protecting the integrity, confidentiality and availability of electronic patient information against security threats, illegitimate access and improper use and disclosure." (Business First of Columbus via bizjournals.com; one-time registration required)
Free HIPAA 'Tipaas' to Health Care Providers on Lawyers' Web Site
Excerpt: "By April 20, 2005, most health providers must implement a new set of standards designed to ensure that these records and files are secure from prying eyes. ... You could take a couple of days off work and snuggle up with a volume of regulations for the Health Insurance Portability and Accountability Act .... Or you could punch up the Web site www.icrh.com for free, bit-sized chunks of rules prepared by Paul Gillan of the Albany law firm Iseman Cunningham Riester & Hyde." (The Business Review (Albany) via bizjournals.com; one-time registration required)
Links to Items on Executive Comp, Benefits in General
OneCLE Publishes Sample Qualified and Nonqualified Retirement Plans Online
The site currently includes sample plans from Halliburton Co., JetBlue Airways Corp., Moody's Corp., and many more. (Onecle Inc.)
Post Retirement Risks Chart Shows Changing Needs and Resources During the Retirement Years
5 pages. Excerpt: "Review the hazards individuals can face during retirement and learn how to make smart choices!' (Society of Actuaries)
Overview: Congress Passes Legislation on Non-Qualified Deferred Compensation Arrangements (PDF)
Excerpt: "After years of failed proposals, Congress has finally passed legislation designed to establish clear limitations on non-qualified deferred compensation arrangements. This legislation is far reaching and will require all employers to take immediate action, including an immediate assessment of plans, agreements and arrangements that may include deferred compensation arrangements. .... The key provisions of the Act are listed in this Alert." (Mintz Levin Cohn Ferris Glovsky and Popeo P.C.)
Analysis: the Impact of the New Nonqualified Deferred Compensation Legislation (PDF)
Excerpt: "The purpose of this alert [written in very readable chart form] is to highlight for employers the key areas of their nonqualified deferred compensation plans that will be affected by the enactment of the new nonqualified deferred compensation legislation." (Gardner Carton & Douglas)
Analysis: the Impact of the New Nonqualified Deferred Compensation Legislation on 457(f) Plans (PDF)
Excerpt: "The purpose of this alert is to highlight for tax-exempt employers the key areas of their Code Section 457 plans that will be affected by the enactment of the new nonqualified deferred compensation legislation." (Gardner Carton & Douglas)
Overview: New Deferred Compensation Tax Legislation Imposes Significant Changes
Excerpt: "On October 11, 2004, Congress passed the American Jobs Creation Act of 2004. The President is expected to sign the Act soon. The Act adds a new section 409A to the Internal Revenue Code, which significantly changes the operation and taxation of nonqualified deferred compensation arrangements for amounts deferred on or after January 1, 2005." (Faegre & Benson LLP)
Overview: Congress Approves Broad Changes to Nonqualified Deferred Compensation Arrangements (PDF)
Excerpt: "On October 11, 2004, Congress passed the American Job Creations Act of 2004 (the Act). The Act includes an amendment to the Internal Revenue Code of 1986 (the Code) that significantly alters the taxation of nonqualified deferred compensation arrangements and is expected to become law before the end of the year." (Pillsbury Winthrop LLP)
OneCLE Publishes Sample Employment Agreements Online
The site currently includes samples from Abercrombie & Fitch Co., Amazon.com Inc., Apple Computer Inc., and many more. (Onecle Inc.)
OneCLE Publishes Sample Severance Agreements Online
The site currently includes sample plans from Walt Disney Co., Yum! Brands Inc., Trump Hotels & Casino Resorts Inc., and many more. (Onecle Inc.)
Overview: FASB Delays Effective Date for Option Expensing Rule
Excerpt: "In its October 13 meeting on equity-based compensation, the Financial Accounting Standards Board (FASB) tentatively decided to delay the effective date of the FAS 123 ruling by six months, to interim or annual periods beginning after June 15, 2005.' Other issues discussed at the meeting include volatility and awards with graded vesting. (Watson Wyatt Worldwide)
Issues in Brief: Will Health Care Costs Erode Retirement Security?
Excerpt: "This brief projects future income and out-of-pocket health care spending at older ages. If current policies continue, income after taxes and health care spending for the typical older married couple will be no higher in 2030 than it was in 2000 -- despite 30 years of productivity growth. The increased health care burden will be particularly painful for those at the lower end of the income distribution who do not qualify for Medicaid." (Center for Retirement Research at Boston College)
Survey: Health Care Executives Say Technology Can Lower Health Care Delivery Costs
Excerpt: "Sixty percent of health care executives believe new medical technologies and equipment can lower health care costs, according to a survey released Wednesday by Siemens Medical Solutions and the Center for Health Transformation. Also, 63% of health care leaders said IT is the most important factor in keeping health care delivery costs to a minimum." (California Healthcare Foundation)
E-Consult Benefits About More Than Reducing Health Care Costs
Excerpt: "One service that many people believe holds great promise, and meets many of the goals of consumers, providers and managed care companies, is e-consults. E-consults can take many forms, but for purposes of this article e-consults means electronic communications between patients and their physicians to obtain treatment or other health-care services." (Business First of Columbus via bizjournals.com; one-time registration required)
Full Text of the HSA Insider Newsletter's October, 22, 2004, Issue (PDF)
9 pages. This edition includes articles titled: Two Amendments to Restrict or Defund Health Savings Accounts for Federal Employees, Excerpts from HealthLeaders' Q & A with Richard Scruggs, Senator Grassley Asks U.S. Treasury Secretary Snow to End the FSA 'Use It or Lose It' Provision, The Political and Economic Forces Pushing the U.S. Treasury to Administratively End the FSA 'Use it or Lose it' Provision, The U.S. House HSA Honor Roll, and Not All Unions Oppose HSAs, Some Want HSAs Expanded. (The HSA Insider)
Overview: OIG Releases FY 2005 Work Plan (PDF)
1 page. Excerpt: "The OIG published its FY 2005 Work Plan on October 12. Health care industry clients will want to review the new annual Work Plan, and consider whether concerns identified by the OIG should be included in their compliance program planning for the coming year. ... For the full OIG FY 2005 CMS Work Plan, visit: http://www.oig.hhs.gov/publications/docs/workplan/2005/2005WPCMS.pdf." (von Briesen & Roper, s.c.,)
Newly Posted Events
2004 Health Insurance Conference: Consumer Driven Healthcare
in Washington on October 26, 2004
presented by IB-Strategies
2004 Health Insurance Conference: Consumer Driven Healthcare
in Washington on October 27, 2004
presented by IB-Strategies
2004 Health Insurance Conference: Consumer Driven Healthcare
in Washington on October 28, 2004
presented by IB-Strategies
Medicare Modernization in a Polarized Environment
in District of Columbia on January 27, 2005
presented by National Academy of Social Insurance
Successful Health Management Systems Seminar
in Florida on February 21, 2005
presented by Wellsource, Inc.
Newly Posted Press Releases
Theoris Introduces New Healthcare Solution for Employees to Reduce Costs, Improve Health
(The Haelan Group)
New Online Health Activity Tracker Can be Tailored by Customers to Fit Their Needs
(Wellsource, Inc.)
Newly Posted or Renewed Job Openings
Plan Administrator
for Abacus Benefit Consultants, Inc.
in RI
Compliance Administrator
for BISYS Retirement Services
in PA
Client Service Representative
for LaRhette Manin Benefits Service Group
in MA
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