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October 29, 2004
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Spitzer Says Marsh May Face 'Far Higher' Than $500 Million Penalty in Collusion Case
Excerpt: "The price for settling state charges of collusion and bid rigging by the nation's largest insurance broker could be 'far higher' than $500 million, New York Attorney General Eliot Spitzer said Thursday. Spitzer disputed the $500 million settlement figure reported Thursday by The Wall Street Journal as the minimum for any settlement of the attorney general's lawsuit against Marsh & McLennan Companies Inc." (AP via SFGate.com)
Text of Fitch Ratings Special Report on Spitzer Investigation of P&C Insurance Industry
6 pages; 10/29/04. Excerpt: "Insurer-paid commissions, those paid by insurers to brokers, fall into three general categories. One, a basic upfront commission based on the simple delivery of a particular piece of insurance business. Two, a contingent commission based on the amount of business volume ... Three, a contingent and trailing commission based upon the underlying performance of the business. All of these, but particularly the second and third, create perverse incentives for brokers ..." (Fitch Ratings; one-time free registration required)
Survey: Most Health Executives Plan to Adopt Electronic Medical Records System
Excerpt: "Eighty-eight percent of health care executives said they are implementing an electronic medical records system or plan to do so within six months, according to a survey by consultant Capgemini, Modern Physician reports. The survey also found that 71% of executives believed EMR adoption would result in a positive financial impact. 'Far and away the number one area of investment in health care is on clinical systems, and the forecast of expenditures is up dramatically,' ...." (California HealthCare Foundation)
Hawaii to Create Statewide Online Medical Records Network
Excerpt: "The Quality Healthcare Alliance, a consortium of businesses and physicians, in January will begin implementing a statewide online medical records network in Hawaii, the Honolulu Advertiser reports. The online network will allow physicians and patients to view records, test results and pres.criptions using computers or personal digital assistants, which should improve patient care, boost efficiency and cut costs." (California HealthCare Foundation)
Full Text of Working Families Tax Relief Act of 2004 Includes Amendment to Definition of Dependent (PDF)
30 pages. Excerpt: "The Council has discovered that the recently enacted Working Families Tax Relief Act of 2004 (H.R. 1308), which extends several expiring tax provisions, also significantly changes the definition of 'dependent' in Section 152 of the Internal Revenue Code (Code) for many tax purposes in an effort to make the definition more uniform." (American Benefits Council)
Congress Changes Internal Revenue Code's Definition of 'Dependent'
Excerpt: "There is an obvious irony in the disparities that might be created by a law intended to establish uniformity. Employers ... will need to stay alert for IRS announcements regarding relief from any unintended consequence of the new law. It appears premature to sound much of an alarm about health coverage generally, but employers may need to think about how to address dependent care assistance elections that relate, for example, to the care of elderly parents." (Ballard Spahr)
Insurance Market Overview -- October 2004 (PDF)
40 pages. Excerpt: "The Insurance Market Update October 2004 offers a snapshot of the insurance marketplace in a briefer and more concise format than our April 2004 Insurance Market Overview. Among the varied and insightful information, the reader will find both the Market and Client's point of view regarding pricing expectations, market security and some unexpected benefits of the hard market." (Aon Consulting)
California Lawmakers to Probe Wal-Mart's Health Care Costs to State Taxpayers
Excerpt: "Citing a study that showed taxpayers spend $32 million a year to subsidize health care for employees of Wal-Mart, legislative leaders said ... they will hold budget hearings into whether the giant retailer's policies unfairly burden the state treasury. The lawmakers ... also said the state's ... pension fund should reconsider their $1 billion investment in Wal-Mart stock if it turns out the company is providing its workers with inadequate health care that ends up costing the state." (AP via The Desert Sun)
Malpractice Insurer Sees Little Savings in Texas Award Caps
Excerpt: "One of the nation's largest medical-malpractice insurance companies told regulators that recently enacted caps on noneconomic damages in Texas would save it little money. In a filing with the Texas Department of Insurance seeking a rate increase, Medical Protective Co., ... said the caps would lower payouts by just 1%. Last year, after a pitched political battle, Texans voted to amend their state constitution to allow caps on awards for noneconomic damages ...." (The Wall Street Journal via The Foundation for Taxpayer & Consumer Rights)
Primary Care and Health System Performance: Adults' Experiences in Five Countries
Excerpt: "This paper reports on a 2004 survey of primary care experiences among adults in Australia, Can.ada, New Zealand, the United Kingdom, and the United States. The survey finds shortfalls in delivery of safe, effective, timely, or patient-centered care, with variations among countries. .... Aside from clinical preventive care, the United States performs poorly on most care dimensions in the study, with notable cost-related access concerns and short-term physician relationships." (Health Affairs)
Reaction to Malpractice Insurer Filing Which Says Texas Caps Will Reduce Payouts by Only 1%
Excerpt: "The Texas Medical Association said the caps already had helped reduce malpractice insurance rates. According to TMA, Texas Medical Liability Trust, the state's largest malpractice insurer, reduced premiums by 17% after the caps were enacted. Jay Thompson, an attorney representing Medical Protective, said the cap comments were only 'one small part of the filing' and taken out of context. He added, 'It completely ignores the realities of the litigation arena.'" (The National Journal Group, Limited via BlueCross BlueShield Association)
Opinion: "Overall Vision" Needed to Address Ills of Fragmented U.S. Health System
Excerpt: "The absence of a single, comprehensive approach to provide universal coverage, control health expenditures, and offer a statutory procedure for determining health benefits has led to 'piecemeal legislative tinkering' in the public and private sector over the past decade, according to an article in the Oct. 27 issue of JAMA. [A]rticles on the health policy proposals of President George W. Bush and Democratic challenger Sen. John Kerry are also included in the same issue of the journal." (Medscape Medical News)
Washington State Launches Web Site to Help Residents Purchase Pres.cription Drugs from Can.ada
Excerpt: "Washington Gov. Gary Locke (D) on Tuesday announced that the state has launched a Web site to help residents purchase lower-cost pres.cription drugs from Can.ada, the AP/Seattle Post-Intelligencer reports. The Web site, www.rx.wa.gov, includes background information on pres.cription drug reimportation and warnings about potential safety and legal concerns. In addition, the Web site includes a link to a Wisconsin site that provides links to three Canadian pharmacies." (Kaiser Family Foundation)
The Role of Pharmacy Benefit Managers in Implementing the Medicare Pres.cription Drug Benefit
Excerpt: "Although hardly noticed by the general public, PBMs already administer pres.cription drug benefits for nearly everyone with employer coverage and for many Medicaid recipients. The new law contains requirements for Medicare drug plan sponsors that could challenge some PBMs--most notably, the requirement to assume insurance risk. This paper explores challenges to PBMs' business practices and provisions of the Medicare benefit that will require them to adapt their mode of operation." (Health Affairs)
Opinion: a Way to Help with Health Insurance Coverage
Excerpt: "In the continuing debate over health care, and especially the uninsured, two seemingly contradictory claims are in play. The first is that the uninsured are being denied access to care. The second is that the uninsured receive too much care, overcrowding emergency rooms and placing hospitals and businesses that cover employee health costs at financial risk. In reality, both statements contain some truth, and both can be partly addressed by one simple action: ...." (The Washington Post; one-time registration required)
Survey of HR and Benefits Managers on Health Care & Presidential Election & Impact on Employees
The 'Hot Topic' survey of human resource and benefits managers at 327 companies shows more support for President Bush's proposals for health coverage than those proposed by John Kerry. (Aon Consulting)
Links to Items on Executive Comp, Benefits in General
D.C. Bill Boosts City's Anti-Discrimination Protections, Not Provide Access to Marriage or Benefits
Excerpt: "A bill introduced this month by D.C. Councilmember Jim Graham (D-Ward 1) to protect domestic partners from discrimination is not expected to provide marriage-related rights or benefits to same-sex couples, the city's human rights director and a g.ay rights attorney told a Council subcommittee." (Washington Blade)
Overview: President Bush Signs Into Law the American Jobs Creation Act of 2004 on October 22, 2004 (PDF)
3 pages. Excerpt: "This is the second in a series of Client Alerts entitled Don't Defer: Immediate Action Required. The series is intended to keep clients and friends of Mintz Levin informed about the far-reaching reforms to non-qualified deferred compensation pursuant to the 'American Jobs Creation Act of 2004.'" (Mintz Levin Cohn Ferris Glovsky and Popeo P.C.)
Overview: New Legal Requirements for Nonqualified Deferred Compensation Arrangements (PDF)
4 pages. Excerpt: "The new rules will impact a broad array of common compensation plans and arrangements, including nonqualified elective deferral arrangements for employees and directors, supplemental executive retirement plans, stock appreciation rights, restricted stock unit programs and option stock deferral arrangements. This Alert contains a summary of the key provisions of the Act and offers suggestions for immediate action by companies ...." (Kirkpatrick & Lockhart)
Washington Legislative Wrap Up, 108th Congress (2003-2004) As of October 26, 2004 (PDF)
6 pages. The chart of federal legislative and regulatory proposals concerning employee benefits of interest to NCTR members has been updated to be current as of October 26, 2004. The federal updates referenced in the chart are available at http://www.nctr.org/federal/index.html. (National Council on Teacher Retirement)
PricewaterhouseCoopers/Saratoga study -- Key Trends in Human Capital: a Global Perspective (PDF)
24 pages. Excerpt: "It is not just within organizations that human capital measurement and reporting has relevance. Recent corporate misdemeanors have led to the Sarbanes-Oxley Act in the US and to a growing recognition in much of the rest of the world of the need for higher and more effective corporate governance." (PricewaterhouseCoopers/Saratoga Institute)
Financial Market Reaction a Scary Variable If Companies Flunk Section 404 of Sarbanes-Oxley Act
Excerpt: "[T]he financial markets may have an even bigger explosion with which to contend: The first set of annual reports detailing the state of companies' internal controls on financial reporting are coming due and early word is that they won't look particularly good. As the deadline approaches for implementing the internal control rules in Section 404 of the Sarbanes-Oxley Act ... many companies may reveal ... that they have fallen short of the law's requirements." (Treasury & Risk Management)
Newly Posted Events
401(a)(9) - Knowing What's Really Required
Nationwide on November 30, 2004
presented by SunGard Corbel
HIPAA and Other Health Laws: Compliance Assistance Seminar
in Louisiana on December 8, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
New Deferred Compensation Rules - Effective January 1, 2005
Nationwide on November 11, 2004
presented by International Foundation of Employee Benefit Plans
Newly Posted Press Releases
American Express National Survey Finds Workers Digging Into Retirement Savings To Offset Health Care Cost Increases
(American Express Retirement Services)
American Express 401(k) Participant Survey Reveals Plan Communication and Education are drivers of Investment Satisfaction with Performance and Choice
(American Express Retirement Services)
'Risk Management For Pensions, Endowments And Foundations' Released Today
(Jessica Bram Communications)
Newly Posted or Renewed Job Openings
Controller
for Directors Guild of America - Producer Pension and Health Plans
in CA
Sales Assistant
for Great-West Healthcare
in VA
Defined Benefit / Defined Contribution Pension Plan Administrator
for Howard Simon & Associates, Inc.
in IL
Account Manager - Greensboro, NC
for Professional Benefits Associates, LLC
in NC
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