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January 31, 2005
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Complete Benefits Law Guidance from Law Journal Press
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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: Final Regulations on Medicare Pres.cription Drug Benefit
Excerpt: "HHS has issued final regulations for the new Medicare pres.cription drug benefit program (known as 'Part D') that will be available beginning in 2006. Like the proposed regulations, the final regulations address the subsidy that is available for certain sponsors of group health plans with pres.cription drug benefits for retirees." (Employee Benefits Institute of America Inc.)

Consumer Advocates Have Concerns on Rules for Medicare Pres.cription Drug Subsidies for Employers
Excerpt: "Consumer advocates are expressing concern about new rules governing incentives paid by Medicare to employers who agree to retain pres.cription drug benefits for retirees, the Wall Street Journal reports (Francis/Schultz, Wall Street Journal, 1/28). Under the new pres.cription drug benefit, Medicare will provide tax-free subsidies to employers equal to 28% of retired workers' annual drug costs." (Kaiser Family Foundation)

Employers Can Get Medicare Subsidies for Lower Pres.cription Drug Benefits to Retirees
Excerpt: "The Bush administration has touched off a furious debate with new rules allowing employers to collect billions of dollars in federal subsidies for pres.cription drug benefits less generous than what many retirees were expecting under the new Medicare law." (The New York Times; one-time registration required)

New Comp Time Rule for Federal Employees Traveling on Official Business Might Help Morale Soar
Excerpt: "The Office of Personnel Management ... issued an ... regulation that allows federal employees to claim time off for travel during their off-duty hours. The regulation, which went into effect Friday, should provide a morale boost to employees who travel on official business during off-duty hours, such as flying on a Sunday to attend a meeting Monday morning. Previous rules have made it difficult for employees to qualify for compensation while traveling outside normal business hours." (The Washington Post; one-time registration required)

Health Care Costs Make Employers See Smokers as a Drag
Excerpt: "Employers have recently tried every carrot they can think of -- including cash incentives and iPods -- to persuade employees to quit smoking. Now some are trying the stick. Pointing to rising health costs and the oversized proportion of insurance claims attributed to smokers, some employers in California and around the country are refusing to hire applicants who smoke and, sometimes, firing employees who refuse to quit." (Los Angeles Times; one-time registration required)

AMA Leader Says Companies Can Help Ease Health Crisis with Wellness Programs and Incentives
Excerpt: "The current health care system is in a crisis, but there are several things employers can do to make a difference. That was the message of American Medical Association President Dr. John Nelson to Las Vegas Valley business leaders during the Las Vegas Chamber of Commerce's Preview Las Vegas on Thursday." (Las Vegas Sun)

Health Care System Overhaul Is Quietly Underway and Being Led by Bush Administration and Congress
Excerpt: "Emboldened by their success at the polls, the Bush administration and Republican leaders in Congress believe they have a new opportunity to move the nation away from the system of employer-provided health insurance that has covered most working Americans for the last half-century. In its place, they want to erect a system in which workers -- instead of looking to employers for health insurance -- would take personal responsibility for protecting themselves and their families: ...." (Los Angeles Times; one-time registration required)

Wall Street Journal Examines Consumers' Misconceptions about High-Deductible Health Plans
Excerpt: "The Wall Street Journal on Friday examined some consumers' misconceptions about provisions of health plans with high deductibles, which 'have become a common way for employers and individuals to reduce their insurance premiums.' Cary Badger, vice president of customer marketing for the Regence Group, said that consumers compare plans and deductibles but often overlook the details of what is actually covered under the plan." (Kaiser Family Foundation)

Improving Federal Health Data for Coverage and Access Policy Development Needs (PDF)
22 pages. Excerpt: "This summary report is based on the three commissioned papers and deliberations on these papers at the invitational meeting held on June 16, 2004. Participants in this meeting included representatives from federal agencies and foundations responsible for the national surveys, and federal and state health policy officials who use these data in developing coverage and access policies and programs." (AcademyHealth)

Medical Reinsurance: Considerations for Designing a Government-Sponsored Program (PDF)
8 pages. Excerpt: "Policy-makers are considering offering government-provided reinsurance to health plans as part of an overall solution to address some of the problems in the health care system. This issue brief provides a primer on the current commercial medical reinsurance market. It then outlines some of the issues policy-makers should consider when designing and implementing a government-sponsored medical reinsurance program." (American Academy of Actuaries)

Survey: Consumer Awareness of Health Savings Accounts (PDF)
5 pages. Excerpt: "The results of a recent Watson Wyatt survey reveal that despite the well-publicized push towards consumer-directed healthcare, most workers have still not heard of health savings accounts (HSAs). The survey also found that, after receiving an explanation of HSAs, most individuals like features such as control of funds and lower premiums, but dislike the risk of higher pres.cription drug payments and deductibles." (Watson Wyatt Worldwide; one-time registration required)

Early Response Suggests Health Savings Accounts Products Are Popular in the Individual Market
Excerpt: "Americans are gobbling up health savings accounts, according to a preliminary industry survey, which suggests that the products could quickly have a significant impact on the health care market. Recent survey results from America's Health Insurance Plans showed that from the point that HSAs became legal in January 2004 through September 2004, nearly 440,000 people enrolled in them. Most of the products were bought in the individual insurance market." (American Medical News)

Medicare Act Did Not Preempt Provider's State Law Claims Against HMO: Fifth Circuit
Excerpt: "The Medicare Act did not preempt a health care provider's state law claims against an HMO seeking reimbursement for kidney dialysis services provided to Medicare beneficiaries. This was the ruling of the Fifth Circuit U.S. Court of Appeals in RenCare, Ltd. v. Humana Health Plan of Texas, Inc. (No. 04-50087)." (Spencer Benefits Reports)

Links to Items on Executive Comp, Benefits in General

Overview: Deferred Compensation: Preparing for the Changes to Nonqualified Plans (PDF)
2 pages. Excerpt: "The American Jobs Creation Act of 2004 (the 'Act') made sweeping changes to non-qualified deferred compensation earned or vested after December 31, 2004. The Act's reach is not limited to employees making elective deferrals under non-qualified deferred compensation plans. Because the Act does not define what constitutes a 'deferral' it is broad enough to reach employer only contribution plans." (Haynes and Boone, LLP)

Aon Corporation Adds Acquisition-Triggered Severance Plan for Key Executives
Excerpt: "Aon Corp. has implemented a new severance package plan for its key executives in the event the Chicago-based brokerage giant is acquired. Aon's board of directors approved the new severance agreements Jan. 21. They were detailed in Securities and Exchange Commission filings on Thursday." (Business Insurance)

Stock Options Don't Add Up If Unrealistic Assumptions in Calculating the Option Expense Are Used
Excerpt: "Top executives on the receiving end of munificent pay packages like to argue that their troughs full of stock options have no relationship to the improprieties that keep erupting across corporate America. But an episode last week involving Brocade Communications, a San Jose, Calif., company that makes switches for computer storage networks, suggests that every now and again there just might be a connection after all." (The New York Times; one-time registration required)

Newly Posted Events

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

Nonqualified Deferred Comp. Plan Workshop with 457 Update
in Minnesota on March 18, 2005
presented by SunGard Corbel

Nonqualified Deferred Comp. Plan Workshop with 457 Update
in Pennsylvania on March 18, 2005
presented by SunGard Corbel

Nonqualified Deferred Comp. Plan Workshop with 457 Update
in Georgia on March 24, 2005
presented by SunGard Corbel

Newly Posted Press Releases

PBGC Selects Fixed Income Portfolio Managers
(Pension Benefit Guaranty Corporation (PBGC))

Still River Releases Sixth Paper in Series on Comprehensive Retirement Planning
(Still River Retirement Planning Software, Inc.)

Hard Charging New Comer Expands Client List and Announces Sweet Tooth Giveaway
(Metrics Partners)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Actuary
for Matthews Benefit Group, Inc.
in FL

Sr. Benefits Representative
for Phelps Dodge
in AZ

Pension Administrator/TPA
for Block Consulting Actuaries, Inc.
in CA

DC/401(k) Administrator
for Gelman Pension Consulting, Inc.
in NY

Special Markets Education Coordinator
for Transamerica
in CA

Account Executive
for TRANSAMERICA
in IL

Plan Services Consultants-Indianapolis
for American United Life Insurance Company
in IN

Client Account Manager
for New York Life Investment Management LLC
in MA

Director, Health & Welfare Practice
for Charles W. Cammack Associates, Inc.
in NJ, NY



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