| BenefitsLink Welfare Plans Newsletter |   |
December 2, 2004
Today's sponsor: Financial Research Associates, LLC
(Click on company name or banner to learn more.)
The 2005 National Public Employees’ Retirement Funds Summit 4th Annual STARS & STRIPES ’05 The 2005 National Public Employees’ Retirement Funds Summit April 3-5, 2005 Casa Marina, Key West, Florida To register call 800-280-8440 or visit www.frallc.com Trustees and Administrators receive $1000 off the registration fee! This year Stars & Stripes has added industry debates, case studies, panel discussions, keynote addresses, closed-door discussions, "work-along" sessions, a series of roundtable discussions, mock situations and other interactive presentations. This is just a sample of what you can expect this year at the Stars & Stripes(sm) 2005 Summit. This year’s summit is skillfully designed with concurrent tracks, one for investment professionals and the other for public fund administrators and staff.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Health Premiums Are Rising As You Read This, According to Council of Insurance Agents & Brokers
Excerpt: "A broker group has found that health insurance premiums are rising by double-digit percentages even over the course of the plan year. In a recently released study (http://www.ciab.com/ContentManagement/ContentDisplay.cfm?), researchers ... reported that companies of all sizes, from those with 50 or fewer employees to those with more than 500, found their premiums were 10% to 20% higher over the last six months than they were at the beginning of the year." (The Adviser via BenefitNews.com)
Tracking Health Care Costs: Spending Growth Slowdown Stalls in First Half of 2004
Excerpt: "The recent slowdown in health care spending growth stalled in the first half of 2004 as health care costs per privately insured American increased 7.5 percent--virtually the same rate of increase as in 2003. Private-sector spending on health care constitutes more than one-half of all health care spending, and both the private and public sectors are subject to similar cost pressures. Growth in spending on hospital inpatient care slowed to 5.1 percent in the first half of 2004, ...." (Center for Studying Health System Change)
No Cure Seen for Growth in Employers' Health Costs
Excerpt: "The growth in health care spending by private employers slowed in recent years, creating some optimism that the employers had turned the corner in their struggle with rising costs. But any relief appears to have been short lived, according to a study to be released today. Growth in spending in the first half of 2004 was about the same as it was in 2003, according to the Center for Studying Health System Change, a nonprofit research group in Washington that tracks spending levels." (The New York Times; one-time registration required)
Advance Communications, Decision Support Tools Were the Key to Open Enrollment Success This Year
Excerpt: "Benefit managers are breathing a collective sigh of relief as another open enrollment season comes to a close. This year, most are reporting a smooth process with few glitches, despite increasingly complex plans and enrollment methods. This is largely due to two factors: good communication and an array of advanced technology and tools." (Employee Benefit News)
Couples Nationwide Rely on West Hollywood's Domestic Partner Registry to Get Health Benefits
Excerpt: "[M]any of the nation's employers have begun allowing domestic partners to register with their benefits plans -- an idea that didn't seem feasible in the cultural climate of the 1980s, Heilman said. Today, nearly 40% of Fortune 500 companies offer such plans, according to the Human Rights Campaign, a g.ay advocacy group. Many of those companies ask domestic partners to sign affidavits affirming their relationships, and file them directly with human resources." (Los Angeles Times; one-time registration required)
Minnesota Governor Announces Proposal for Health Care Purchasing Plan to Reduce Spending
Excerpt: "Minnesota Gov. Tim Pawlenty (R) on Monday announced a plan that aims to reduce health spending in the state by $12 billion annually, the St. Paul Pioneer Press reports. The plan calls for the creation of a 'Smart Buy' purchasing alliance, which would allow state officials, the Buyers Health Care Action Group, Minnesota Business Partnership, Minnesota Chamber of Commerce, Labor/Management Health Care Coalition of the Upper Midwest, Minnesota Association of Professional Employees, ...." (Kaiser Family Foundation)
Blues Plans Try New Approaches to Reducing Obesity-Related Illnesses
Excerpt: "Blue Cross and Blue Shield plans across the country are trying to get their arms around a growing health issue -- the rapidly expanding waistlines of their members. While all Blues plan officials who spoke with The AIS Report say they hope their programs will lead to a healthier -- and ultimately less expensive -- member population, their approaches vary greatly, from patient education and exercise programs to significantly higher fees paid to surgeons who perform bariatric ...." (The AIS Report on Blue Cross and Blue Shield Plans via AISHealth.com)
GAO Report: Medicare Payments to Exceed Costs for Cancer Treatment
Excerpt: "Medicare payments for cancer drugs will decline next year but will still exceed what doctors pay for them, congressional investigators said Wednesday. Cancer doctors and some patient advocates have said the Bush administration's planned cuts would imperil office-based chemotherapy treatments and force patients to travel to hospitals for their medicines. But Medicare payments for the drugs will exceed doctors' costs by 6 percent on average, while reimbursements for other services ...." (AP via Yahoo! News)
Drug Wars Ahead: From Medicare to Canadian Imports, a Guide to the Coming Policy Battles
Excerpt: "But while Congress and the White House are contemplating changes in the system, the more immediate concern for most Americans is simply how to pay for the pres.cription drugs they need. Drug costs are 'the fastest-growing part of health care,' says Ron Pollack, executive director of the consumer group Families USA. The pharmaceutical industry argues that the cost of research and development for new drugs has increased dramatically." (Newsweek via MSNBC News)
Generic Drug Campaigns Targeted at Physicians and Members
Excerpt: "As part of the ongoing campaign by insurers and PBMs to save money for plan sponsors and members through the increased use of generic drugs, more plans are starting to target physicians in addition to members. CIGNA Pharmacy Management (CPM), the PBM unit of CIGNA Corp., and Coventry Health Care-owned HealthAmerica and HealthAssurance on Nov. 11 both unveiled plans to encourage physicians to incorporate more generic drugs into their prescribing practices." (DRUG BENEFIT NEWS via AISHealth.com)
Consumers Explain How Consumer-Directed Care Makes Them Better Consumers
Excerpt: "CDH enrollees who spoke with ICDC agree that CDH plans have prompted them to be better consumers of health care. Even heavy utilizers of care say the high deductibles associated with the CDH plans typically are no more costly than traditional health plans once copays and other expenses are factored in." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
Web Site Shows California Health Insurance Mandate Winning, But Officials See Likely Error
Excerpt: "A state Web site Tuesday reported a come-from-behind victory for the Nov. 2 ballot measure that requires large and midsize employers to help pay for employee health insurance, but officials said the results were probably in error." (AP via SignonSanDiego.com)
Sixth Circuit Issues Injunction Prohibiting Firm From Ending Retiree Health Care Benefits
Excerpt: "Citing the 'potential for serious irreparable harm,' the Sixth Circuit U.S. Court of Appeals has upheld the issuance of a preliminary injunction restraining a company from terminating retiree health care benefits pending the outcome of a trial. The case is McCoy, et al. v. Meridian Automotive Systems, Inc., et al. (No. 04-1195)." (Spencer Benefits Reports)
Links to Items on Executive Comp, Benefits in General
Congress Fixes 'Dependent' Definition: Tax Law Change Raises Issues for Plan Sponsors (PDF)
3 pages. Excerpt: "Though not the monumental benefits administration headache it first seemed, the new tax code definition of 'dependent' could require many employers to modify their dependent care assistance plans, 401(k) plans and other benefit programs that use the tax code definition. .... The legislation with the new definition -- the little-noticed Working Families Tax Relief Act ('WFTRA') -- was signed into law shortly before the November elections and is effective for tax years ...." (Gardner Carton & Douglas)
Value-Added Service with Benefit Statements and Web Site Is Key to Writing Benefits Business
Excerpt: "Having access to the administrative services provides a solid defense against bigger competitors, .... 'The key selling proposition for many of the big brokers is their ability to provide additional services and consulting. They really don't compete exceptionally well on price alone. By being able to provide benefits statements and other services, we can take away their leverage with our clients. ....'" (The Rough Notes Magazine)
Comments: Common Law Marriage Abolished in Pennsylvania--Again
Excerpt: "All of this means that employers who have employees in Pennsylvania will have to be on the alert for issues relating to common law marriage, probably for years to come. The issue could have serious repercussions for employers that fail to assess the important implications of the development. For instance, if an employee truly has a 'common law spouse' under Pennsylvania law, that spouse could be entitled to certain spousal benefits under ERISA." (Attorney B. Janell Grenier via BenefitsBlog.com)
Overview on Choosing Your Trustees When Involved in Estate Planning (PDF)
3 pages. Excerpt: "If you've done focused estate planning – something other than a simple Will to name guardians for the kids – you may have found it a confusing process. Tax worries, complicated legal language, insurance planning, investment strategies and so on had to be sifted through and decisions had to be made. But how much time did you spend really thinking about how your estate plan would impact the people involved -- you and your beneficiaries?" (von Briesen & Roper, s.c.)
American Jobs Creation Act Restricts Tax Advantages of Nonqualified Deferred Compensation Plans (PDF)
Pages 1-3 of 4 pages. Excerpt: "On October 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004 (H.R. 4520), providing $145 billion in tax reductions for U.S. manufacturers, multinational firms, agriculture, and energy firms. In addition, the Act significantly restricts the tax advantages available to nonqualified deferred compensation (NQDC) plans, effective for amounts deferred after December 31, 2004." (Gabriel, Roeder, Smith & Company)
Hewitt Federal Legislation Quick Guide Updated November 30, 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)
Insurance Company Probes May Lead to More Fee Disclosure
Excerpt: "Canadian insurance regulators are reviewing insurance compensation arrangements too, but it is unclear if they will focus heavily on employee benefits. However, investigators with Spitzer's office have anonymously told news outlets that overrides - which many top benefit consulting firms accept as a standard part of doing business - are a target of the probe. Overrides, also known as contingency fees, are based on the volume and profitability of business that brokerages and ...." (Employee Benefit News)
Overview: Broad-Based Equity: a Vital Vehicle or Bygone Benefit? (PDF)
6 pages. Excerpt: "Consternation about the future of equity is not limited to executive pay. Less than five years ago, employers favored equity rewards to reinforce employee ownership and long-term success. But in the face of FASB's long-anticipated stock option expensing rules and shareholder concerns about the dilutive effect of options, companies have begun to reexamine the value and affordability of these rewards." (Mercer Human Resource Consulting)
SEC Issues Exemptive Order Granting 45-Day Internal Controls Implementation Delay for Some Filers
Excerpt: "On November 30, 2004, the SEC issued an exemptive order to grant certain accelerated filers an additional 45 days to file their management report (and the related auditor attestation) on internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. The relief offered by the exemptive order is available to accelerated filers having a fiscal year ending between and including November 15, 2004 and February 28, 2005, and having a public equity float ...." (Faegre & Benson LLP)
U.S. Labor Department Extends Annual Reports Deadline After Severe Storms and Flooding Hit New York
Excerpt: "The U. S. Department of Labor's Employee Benefits Security Administration (EBSA) ... announced an extension of the deadline for filing Form 5500 and Form 5500 EZ annual report/returns due to extensive damage from severe storms and flooding in New York. President Bush has declared a major disaster in 14 counties in the State of New York due to the damage caused by the storms. The extension applies to plan administrators, employers and other entities located in areas directly ...." (U.S. Department of Labor via BenefitsLink.com)
Newly Posted Events
Estate and Income Tax Planning for Qualified Plans and IRAs
in California on January 20, 2005
presented by SunGard Corbel
Estate and Income Tax Planning for Qualified Plans and IRAs
in Washington on January 21, 2005
presented by SunGard Corbel
Estate and Income Tax Planning for Qualified Plans and IRAs
in California on January 21, 2005
presented by SunGard Corbel
Estate and Income Tax Planning for Qualified Plans and IRAs
in District of Columbia on January 27, 2005
presented by SunGard Corbel
Estate and Income Tax Planning for Qualified Plans and IRAs
in New York on January 28, 2005
presented by SunGard Corbel
Newly Posted Press Releases
Employee Satisfaction With Health Benefits Remains Surprisingly High, Watson Wyatt Survey Finds
(Watson Wyatt)
Newkirk/McKay Hochman Redesign Retirement Plan News Publication
(Newkirk)
Newkirk/McKay Hochman Redesign Retirement Plan News Publication
(McKay Hochman Co., Inc.)
myCafeteriaPlan still accepting FSA and HRA plans for January 1, 2005 start date
(BusinessPlans, Inc. - myCafeteriaPlan.com)
Newly Posted or Renewed Job Openings
401(k) Account Manager
for BISYS Retirement Services
in PA
Pensions/401(k) ERISA Compliance Specialists
for Parker White Consultants, Inc. in Northern New Jersey
in NJ
Director of Product Marketing
for ADP
in GA
Pension Administrators
for Associated Pension Consultants
in CA
Daily Valuation Manager / Supervisor
for The Weiss Group, Inc.
in IL
Pension Administrators
for Primary Consulting, Inc.
in ANY STATE
Plan Manager - Recordkeeper
for TPA - Atlanta, Georgia/Non-Qualified Benefit Administration
in GA
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
Copyright 2004 BenefitsLink.com, Inc.; except that you can reprint this newsletter in full (if you also include this boilerplate part) without obtaining our permission.
Published by:
BenefitsLink.com, Inc.
https://benefitslink.com/about.html
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
Editor and Publisher: David Rhett Baker, J.D.
Housekeeping: