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October 25, 2004
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Pharmacy Benefit Managers' Rise Brings Increased Scrutiny, Lawsuits and Government Probes
Excerpt: "An industry hardly heard from even a decade ago, pharmacy benefit managers, or PBMs, today are central figures in determining how, and for how much, most people get their pres.criptions filled. With that prominence, however, have come questions, lawsuits and government inquiries about PBMs, a group dominated by three large companies that includes Nashville-based Caremark Rx Inc." (The Tennessean)
Business Insurance Archive of Articles on the Insurance Industry Contingent Commissions Issue
Excerpt: "To help subscribers stay informed, and to review the developments that led to Eliot Spitzer's investigation, Business Insurance has compiled an online archive of all articles it has written on the contingent commissions debate in recent years. In addition to links to articles going back to 1998, the online resource features links to Mr. Spitzer's announcement of his lawsuit, Securities and Exchange Commission filings and other material." (Business Insurance; subscription required to read full text of archived articles)
Who Loses the Most as Marsh & McLennan Stock Sinks? Its Workers
Excerpt: "Certain things in life never change, of course, and one of the more unfortunate constants is that when corporations behave badly, their rank-and-file workers are hit hardest. Executives always seem to vanish from the accident scene, toting their munificent pay packages; ordinary workers are left with little or nothing. Nowhere is this clearer than at Marsh & McLennan, ... the subject of a lawsuit ... that accuses the company of rigging bids to keep insurance costs high." (The New York Times; one-time registration required)
Overview: Flexible Scheduling Options Would Give More Paid Time Off to Employees Who Choose It (PDF)
Excerpt: "The Fair Labor Standards Act of 1938 requires that private sector employers pay covered employees cash for all overtime hours worked. However, as employees struggle to balance work hours, long commutes, family responsibilities, and personal interests, they are requesting new pay options such as compensatory time, which public sector employees have long enjoyed." (HR Policy Association)
New Health Insurance Plans Reach Out to Companies Challenged by Benefits
Excerpt: "Sarasota Memorial Health Care System has established its Charter Plan, a health care insurance program designed for small businesses in Sarasota County. Charter Plan, approved by state insurance regulators in late 2003, is designed for businesses with four or more employees that have not provided health care insurance coverage to their workers for the six months preceding their application to participate in the plan." (Tampa Bay Business Journal via bizjournals.com; one-time registration required)
Talking About Medicare: New Consumer Guide Addresses Questions on Eligibility, Coverage
Excerpt: "The new online consumer guide from the foundation offers beneficiaries and their family members and caregivers information about coverage, eligibility, the new Medicare law and supplemental insurance options." (KaiserNetwork.org)
The State of Hawaii Offers a Look at Mandatory Healthcare Coverage Provided by Employers
Excerpt: "As Californians weigh whether to require employers to provide health insurance, Hawaii ... provides a glimpse of what could be ahead. For 30 years, all Hawaii businesses have been required to provide insurance to any employee who works at least 20 hours for four consecutive weeks. The state was an inspiration for Proposition 72, the referendum on California's Nov. 2 ballot that would impose a similar mandate on businesses with at least 50 workers.' (Los Angeles Times; one-time registration required)
CalPERS Endorses California Mandated Health Insurance Initiative on the November 2 State Ballot
Excerpt: "California's public employee pension fund endorsed a proposal to expand health insurance coverage to employees of large and medium-sized businesses, a measure Gov. Arnold Schwarzenegger opposes. In a statement released on Friday, the California Public Employees' Retirement System urged voters to approve the initiative on the Nov. 2 state ballot, saying the costs of treating the uninsured in hospital emergency rooms pushed insurance premiums up for all state residents." (Reuters)
Brief Analysis on How to Pay For Healthcare Reform
Excerpt: "If healthcare reform is going to happen it has to be seen as a multidimensional problem that will take multidimensional solutions. These solutions include a new form of funding coming from multiple sources simultaneously. Healthcare is not a simple concept and the complexities have lead to a confusing set of business models that intertwine to create a fragmented and locally focused, nationwide industry." (Bill Bysinger for HealthLeaders News)
Momentum Builds for Federal Government Role in Paying Highest Health Care Costs
Excerpt: "Senator John Kerry is pushing the concept, and so are some Senate Republicans. That is why lawmakers and lobbyists say that regardless of who wins the presidential election, Congress will soon take up the idea of fighting high health insurance costs by shielding employers from the most expensive medical cases. In seeking to rein in the costs of ... insurance premiums paid by employers and their workers - ... politicians ... and [others] are pushing an idea known as reinsurance." (The New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
President Signs Corporate Tax Legislation: $143 Billion Measure Is Bush's Fifth Major Tax Cut
Excerpt: "With no fanfare, President Bush yesterday signed into law the most sweeping corporate tax legislation in nearly two decades and the fifth major tax cut since he took office less than four years ago. His signature means that Bush and the Republican Congress have fundamentally changed the U.S. tax code in ways large and small, for struggling individuals and corporate giants, bow-and-arrow makers and billionaires." (The Washington Post; one-time registration required)
Accounting for Pensions and Other Postretirement Benefits (FAS 87 and FAS 106) 2004
Excerpt: "In this report, Watson Wyatt Worldwide analyzes disclosures under Financial Accounting Standards Board (FASB) Statements 87 and 106 (FAS 87 and FAS 106), as amended by FASB Statement 132 (Revised 2003) (FAS 132). The disclosures are from the most recent annual reports or financial statements of the nation's largest industrial and service companies. The report summarizes the assumptions used by companies in the calculation of pension expense and obligations, ...." (Watson Wyatt Worldwide)
Miners' Benefits Vanish With Bankrup.tcy Ruling Terminating Collective Bargaining Agreements
Excerpt: "[L]ast month, a federal bankrup.tcy judge in Kentucky authorized Cannelton's owner, Horizon Natural Resources, to terminate its collective bargaining agreements with the United Mine Workers of America. .... Mr. Leake is one of nearly 3,800 union coal miners and their dependents in West Virginia, Kentucky, Illinois and Indiana whose company-financed health insurance vanished with a swipe of Judge William S. Howard's pen last month." (The New York Times; one-time registration required)
Overview: Deferred Compensation Legislation Enacted (PDF)
3 pages. Excerpt: "Changes to the tax rules governing nonqualified deferred compensation, which are included in the American Jobs Creation Act of 2004 (the 'Act'), will require many employers to act quickly to modify the deferred compensation arrangements they maintain for executives. The new rules apply to amounts deferred after December 31, 2004, and to amounts deferred under an arrangement that is materially modified after October 3, 2004." (Hay Group; one-time registration required)
Overview: How Do You Fund a Nonqualified Deferred Compensation Plan? (PDF)
Excerpt: "Under current tax law, nonqualified plans - such as deferred compensation plans - must remain unfunded to effectively defer taxation. However, an informal financing strategy can help sponsoring companies offset the costs of these plans, provide a source of funds to pay benefits and offer some benefit security." (Aon Consulting)
Overview: How is CEO Pay Really Changing? the Answer is Surprising (PDF)
4 pages. Excerpt: "With many recent studies showing a decline in large company CEO pay, we decided to see if this accurately reflected company trends. Using data from Aon's eComp database, we examined 2,400 mid-sized, large and jumbo company CEO pay packages and were surprised with some of our findings." (Aon Consulting)
Hewitt Federal Legislation Quick Guide Updated October 19, 2004
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)
DOL's Employee Benefits Security Administration Enforcement Actions and Results for 2000-2004
1 page chart. The Employee Benefits Security Administration reports that they achieved a 121% increase in enforcement results that protected $3.1 billion in retirement, health and other benefits for American workers and their families in fiscal year 2004. (http://www.dol.gov/ebsa/pdf/fs2004enforcementresults.pdf)
Election 2004 Guide: Compare President Bush and Sen. Kerry and Review the Issues of the Past Year
Excerpt: "This interactive tool compares President Bush and Sen. John F. Kerry using voting records, past statements and stated policy stances. See where Kerry and Bush stand on a wide range of issues, both foreign and domestic." (The Washington Post; one-time registration required)
A Quick Guide to Where Bush and Kerry Stand on the Issues
Excerpt: "The debates are over, and there's less than two weeks to go to election day. Still not sure where President George W. Bush and U.S. Sen. John Kerry stand on the issues? Here's a look at their position on 15 key points." (Chicago Sun-Times)
Newly Posted Press Releases
FREE from DATAIR: Pension Reporter (5500) System with Year 2004 Forms
(DATAIR Employee Benefit Systems, Inc.)
Newly Posted or Renewed Job Openings
Plan Administrator
for Weaver Partners, Inc.
in ANY STATE
Associate Attorney
for Kraw & Kraw
in CA
Pension Sales Manager
for American Express Tax & Business Services
in CT, MA, NY
Defined Contribution Plan Administrator
for The Heintzberger Company
in OR
Defined Benefits Administration Specialist
for Exelon Corporation
in IL
Sr. Programmer Analyst
for Hewitt Associates
in IL
Health & Welfare Consultant
for Hewitt Associates
in IL
Benefits Service Manager
for Hewitt Associates
in TX
Pension Administrator
for Schiller's Pension Consulting
in CA
Benefits Service Manager
for Hewitt Associates
in IL, WI
Benefit Project Manager
for Hewitt Associates
in IL
Defined Benefits Requirement Analyst
for Hewitt Associates
in IL
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