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January 19, 2005
Today's sponsor: BeneCom Associates, LLC

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(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Overview: DOL Application of Prohibited Transaction Provisions to Incentive Contributions to HSAs (PDF)
2 pages. Excerpt: "The Department of Labor recently released an advisory opinion on cash contributions made by an insurer or a bank to an individual's health savings account (HSA) as an incentive for participation in the HSA. Under the scenarios presented, the DOL did not consider these contributions to have resulted in a prohibited transaction" (Mellon Financial Corporation)

Kaiser Daily Health Policy Report Rounds Up Governors' State-of-the-State Speeches
The target page highlights governors' State of the State speeches given last week for Alaska, Arizona, Arkansas, California, Colorado, Georgia, Idaho, Indiana, Iowa, Kansas, Massachusetts, Mississippi, Missouri, Oregon, Vermont, Virginia, Washington, Wisconsin, and Wyoming. (Kaiser Family Foundation)

Medi-Cal Redesign Plan Could Face State and Federal Obstacles, According to Media Reports
Excerpt: "Gov. Arnold Schwarzenegger's (R) recent proposal to overhaul Medi-Cal is a 'more measured approach' than his initial plan, which would have saved $400 million through 'dramatic reforms,' the Sacramento Bee reports. Although the 'drastically scaled back' proposal might avoid 'a bruising political fight with Democrats,' getting the redesign approved could serve as the governor's 'toughest test yet,' according to the Bee (Benson, Sacramento Bee, 1/18)." (California Healthcare Foundation)

Kansas State Senate Republicans Unveil Six-Point Health Care Plan
Excerpt: "A health care proposal crafted by Senate Republicans was rolled out in Topeka on Tuesday. It's a plan its supporters say includes help to fight the high cost of pres.cription drugs for the neediest and 'promotes long-range health, fitness and nutrition programs.' The initiative's goals are similar to those of the 'Healthy Kansas' program announced by Gov. Kathleen Sebelius and Insurance Commissioner Sandy Praeger late last year." (Wichita Business Journal via bizjournals.com; one-time registration required)

Healthy New York -- Leading State Program Encouraging Small Business to Purchase Health Coverage
Excerpt: "The Healthy New York ... Program is a state-subsidized reinsurance mechanism that reimburses health plans for 90 percent of claims paid between $5,000 and $75,000 on behalf of a member in a calendar year. When the program was inaugurated in January 2001, the risk-sharing corridor was between $30,000 and $100,000; however, it was lowered in July 2003 due to lower-than-expected claims activity. To reflect this change, most plans reduced their premiums by approximately 17 percent." (State Coverage Initiatives)

Road Map to a Digital System of Health Records to Reduce Medical Errors and Improve Efficiency
Excerpt: "Yesterday, a group of 13 health and information technology organizations gave the Bush administration its recommendations for just such a road map for a national health information network. The group's report suggesting the principles that should guide the creation of such a network made an emphatic call for open, nonproprietary technical standards for communication across the network." (The New York Times; one-time registration required)

USP Model Guidelines Are Workable, but Present Negotiating Challenges, Say MCOs
Excerpt: "While the United States Pharmacopeia has delivered its final list of 146 therapeutic categories and pharmacologic classes to CMS, managed care organizations (MCOs) hoping to provide pres.cription drug coverage under the Medicare drug benefit now wait with bated breath to see what CMS will do with the USP model guidelines. CMS is expected to issue final formulary guidance and the final Medicare Part D rule late this month or in early February, according to industry insiders." (DRUG BENEFIT NEWS via AISHealth.com)

Brief Analysis: Health Care Tax Credits for the Uninsured
Excerpt: "To be effective, a health care tax credit must meet some specific criteria: (1) It must be refundable for low-wage workers (that is, they get the subsidy even if they have no tax liability); (2) The credit must be advanceable, so that it can be used to pay monthly premiums as they come due, rather than a lump-sum payment received when tax returns are filed on April 15; (3) It must not come with costly mandates that raise the cost of insurance and price healthy people out of the ...." (National Center for Policy Analysis)

Brief Analysis: Ten Easy Health Reforms by John C. Goodman
Excerpt: "While the idealists among us still hope for a major overhaul of our health care system, there are some minor reforms lawmakers could enact that would pay big dividends. Here are 10 suggestions along with the Web addresses of NCPA publications that discuss them in greater detail." (National Center for Policy Analysis)

Links to Items on Executive Comp, Benefits in General

Employers May Boost Financial Incentives to Reduce Workers' Benefits Costs in 2005
Excerpt: "Facing continuing premium increases and a much broader array of product options, employers are likely to incorporate more financial incentives to encourage participation in disease management and other programs in 2005, predict employee benefits consultants interviewed by MCW. Firms also are showing greater interest in limited-benefit designs for health care as the country's labor force moves more toward independent and part-time workers." (MANAGED CARE WEEK via AISHealth.com)

Newly Posted Events

Defined Contribution Plans: Learn How Latest Regulations and Guidance Impacts Your Plans
in California on February 3, 2005
presented by International Society of Certified Employee Benefit Specialists, Northern California Chapter

Forecast: What's Ahead For Managed Care In 2005
Early Bird Registration: Sign up by Friday (January 21) and Save $50!
Nationwide on January 27, 2005
presented by Health Resources Online

The 2nd Annual Chronic Disease Management Strategies For Employers - West
in California on March 1, 2005
presented by International Quality & Productivity Center (IQPC)

Newly Posted Press Releases

PBGC To Protect Pensions At Murray Inc.
(Pension Benefit Guaranty Corporation (PBGC))

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Associate Director of Human Resources/Benefits Administrator
for St. Lawrence University
in NY

Pension Administrator
for Eide Bailly LLP
in MN

Sr. Group Health Underwriter
for National Health Insurance Carrier
in CA, FL, MI

Pension Administrator
for G.M. Pensions, Inc. in the San Diego Area
in CA



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