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November 5, 2004
Today's sponsor: WorldatWork
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New WorldatWork publications added to the Bookstore. WorldatWork, a not-for-profit professional association, is a leading publisher of compensation, benefits and total rewards information. With a portfolio of books, reports, survey briefs, booklets and online learning programs, WorldatWork creates, markets and distributes publications that are critical to improved organizational performance. WorldatWork has contributed to the education and development of business professionals worldwide since 1955.
What to Watch for in '05: Health Care and Employer Friendly Policies
Excerpt: "The new look of Washington, D.C., is likely to be more business-friendly than the past four years have been. [There may be an] effort by regulators to clarify parts of the Family and Medical Leave Act, reducing some confusion among employers about which health conditions qualify [and t]ax changes to facilitate the spread of health savings accounts." (Workforce Management)
Developments in California: Comments on Various Current Employee Benefit Issues
Excerpt: "California Attorney General Bill Lockyer has started an investigation into alleged bid rigging by insurance firms and brokers ... California issued proposed regulations setting forth the fiduciary duties owed to a client by brokers.... California voters rejected the proposed law requiring businesses to provide health insurance for their workers or to pay into a state health coverage fund ... Discretionary Clauses in Disability Insurance Policies Ruled Illegal in California." (Attorney B. Janell Grenier via BenefitsBlog.com)
Health Care Industry Expects to Benefit from Bush Re-Election According to Numerous Newspapers
Excerpt: "Pharmaceutical companies and other sectors of the health care industry likely will benefit from new federal policies and the continuation of current policies as a result of the re-election of President Bush over Sen. John Kerry (D-Mass.)" (The National Journal Group, Limited via BlueCross BlueShield Association)
Election 2004: Newspapers Advise Winners on Health Care Issues
Excerpt: "Several newspapers recently published editorials and an opinion piece to advise President Bush and Congress on health care and other issues." (The National Journal Group, Limited via BlueCross BlueShield Association)
Bush's Challenge: Deficits, Health Costs, Uninsured, Tort Reform, Tax Code Reform
Excerpt: "The health care industry greeted the election results positively. Share prices for pharmaceutical companies rose on the expectation that there will be less interest in price controls. Managed care stocks also did well, reacting to the Bush administration's support of private-sector involvement with Medicare." (USA TODAY)
Insurers and Drug Makers See Gain in Bush Victory -- for Medicare Reform Measures and Profits
Excerpt: "Insurance and pharmaceutical executives said Thursday that they were pleased and immensely relieved at the election results. President Bush's victory, they said, guarantees that the new Medicare pres.cription drug program will be carried out by officials who enthusiastically support it. .... The election results were seen as a good omen for insurers, especially managed-care companies." (The New York Times; one-time registration required)
Employee Benefits Survey: Who Will Manage Employee Health Care and Health Care Costs?
Excerpt: "An annual survey suggests employers are ambivalent about consumer-directed health plans (CDHPs). Short-term, CDHPs appeal to employers who need to shift the crippling burden of health costs onto employees. Longer-term, many employers want to integrate their health plans into health and productivity management (HPM) initiatives." (Risk and Insurance)
Overview: Chronic Disease Management in a Taft-Hartley Indemnity Plan
5 pages. Excerpt: "One plan's story of how a mobile health screening program evolved into a chronic disease management program...." (Benefits & Compensation Digest via International Foundation of Employee Benefit Plans)
Medicare Panel Says There is Not Enough Clinical Data to Expand Obesity Surgery Coverage
Excerpt: "The Medicare Coverage Advisory Committee said there is not enough clinical evidence to support expanding Medicare coverage of bariatric surgery to obese patients without comorbid conditions. Medicare currently covers the costly and dangerous surgery only as a last-resort treatment for obese patients suffering such conditions as diabetes, heart disease and sleep apnea." (Modernhealthcare.com)
Medicare Covers New Treatments With a Catch; Patients Must Enter Studies That Evaluate Effectiveness
Excerpt: "For the first time in its history, Medicare has systematically begun to make payments for new and expensive treatments and diagnostic tests conditional on agreement by companies or other groups to pay for studies on whether these new methods actually work on the Medicare patients who get them. The move was decided by the agency's recently appointed director, Dr. Mark McClellan, who said the goal was better and more cost-effective medicine." (The New York Times; one-time registration required)
COBRA Final Rules Contain Helpful Model Notices for Use by Plan Administrators
Excerpt: "On May 26, 2004, the U.S. Department of Labor ('DOL') issued final rules specifying the required content and timing of notices required by the health care continuation provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 ... as amended. DOL issued proposed COBRA rules in May 2003 (29 C.F.R. 2590.606-1 through 2590.606-4) and requested public comments. The final rules are substantially similar to the proposed rules, with only minor revisions and clarifications." (Groom Law Group)
Links to Items on Executive Comp, Benefits in General
United Seeks an Additional $2 Billion in Cost Cuts Including Pension Terminations and More Wage Cuts
Excerpt: "United Airlines, trying to restructure after nearly two years in bankrup.tcy protection, told its unions last night that it wanted to terminate its four employee pension plans and seek additional wage and benefit cuts, as part of a plan to cut another $2 billion a year in costs. Termination of the pension plans would require approval from the Federal Bankrup.tcy Court in Chicago, where United sought protection in December 2002." (The New York Times; one-time registration required)
Relief Provided in Connection with Certain Employee Benefit Plans Because of Florida Storm Damage (PDF)
Excerpt: "The Internal Revenue Service, the Department of Labor's Employee Benefits Security Administration ('EBSA') and the Pension Benefit Guaranty Corporation ('PBGC') are providing relief in connection with certain employee benefit plans because of damage in Florida caused by Tropical Storm Bonnie, Hurricane Charley and Hurricane Frances ('Florida Storms'). The relief provided by this notice is in addition to the relief already provided by the Service to victims of the Florida Storms." (Internal Revenue Service)
New State Marriage Laws Raise Domestic Partner Benefits Concerns
Excerpt: "After 11 states approved constitutional bans on g.ay marriages in Tuesday's vote, national employer groups said the effects could challenge domestic-partner benefits for same-sex couples. 'I think there's a very real chance,' said David Namura, manager of state affairs at the Society for Human Resource Management, the Virginia-based association of about 175,000 human resources professionals nationwide. Minneapolis employment attorney Rick Nelson disagrees." (Star Tribune; one-time registration required)
Blue Cross Blue Shield of Montana Executive Defends Salary, Perks, and Dog-Sitting Allowance
Excerpt: "Peter Babin, the embattled president of Blue Cross and Blue Shield of Montana, on Thursday defended his pay and perks to company employees, blasted some press coverage as petty and told workers if they are ashamed of working for the company, they ought to quit. Babin ... told hundreds of employees the company has come up with a new health insurance plan for them that eased somewhat the added financial costs an earlier plan would have imposed on them." (The Billings Gazette)
Bush Likely to Emphasize 'Ownership Society' in Second Term; Newspapers Predict Social Agenda
Excerpt: "According to the New York Times, Bush's 'broad domestic agenda' will focus on his 'vision of an 'ownership society'' and will 'extend his conservative, market-oriented proposals' for health care and other issues. Along with proposals to reform Social Security and the federal tax code, Bush 'is expected to keep pushing the idea of health savings accounts as a way to create savvier consumers who shop around for the best deals in medical care,' ...." (The National Journal Group, Limited via BlueCross BlueShield Association)
Bush Agenda Includes Extension of Tax Relief and Renewed Push for Private Savings Accounts
Excerpt: "While much of the campaign focused on war and terrorism, President Bush has a full agenda of domestic priorities and his re-election is certain to shape, and in some cases perhaps reshape, Americans' tax-planning, health-care and savings strategies. During his second term, Mr. Bush is likely to push some issues, such as privatizing parts of Social Security, ... -- as well as extend many of the proposals on health care ... that he introduced during his first four years." (Wall Street Journal Via Factiva)
Full Text of HR 1779: Senate Bill with Amendments Affecting Military Differential Pay (PDF)
8 pages. Excerpt: "Resolved, That the bill from the House of Representatives (H.R. 1779) entitled `An Act to amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from retirement plans during the period that a military reservist or national guardsman is called to active duty for an extended period, and for other purposes.', do pass with the following ...." (U.S. Senate via The ERISA Industry Committee)
Newly Posted Events
Fall 2004 Quarterly Meeting
in Montana on November 17, 2004
presented by Western Pension & Benefits Conference - Montana Chapter
Newly Posted Press Releases
Deferred Compensation Legislation
(Proskauer Rose LLP)
Newly Posted or Renewed Job Openings
Installation Administrator
for Transamerica
in CA
Business Development Manager
for National Financial Services Firm
in CA
FSA/HRA Administration, Manager
for Oxford Associates of Maryland, Inc.
in MD
Pension Administrator
for Cremen, Clements and Associates Pension Administration, Inc.
in MD
Account Executive Director- Recruitment Services
for Principal Financial Group
in PA
H&W Quality Assurance Manager
for Hewitt Associates LLC
in IL
Retirement Plan Sales Executive
for Ceridian
in CA
Field Sales Coordinator
for Transamerica
in CA
401(k) Account Executive
for DC Pension Consultants, LLC
in NJ
Defined Benefit Conversion Specialist
for New York Life Investment Management RPS
in MA
401k Plan Transition Administrator
for ADP Retirement Services
in NJ
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