| BenefitsLink Welfare Plans Newsletter |   |
March 1, 2005
Today's sponsor: Financial Research Associates
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MEDICARE PART D IMPLEMENTATION SUMMIT April 28 – 29, 2005 • Washington D.C. To register: 800-280-8440 • Build effective education and outreach programs to ensure competitive enrollment • Understand the likely implications of “dual eligibles” on your plan • Learn how different pricing strategies will appeal to different market segments • Gain practical insight into effective contract negotiation strategies with manufacturers • Maximize your marketing budget by aligning your efforts with those of the CMS • Understand the special requirements for delivering Rx services in LTC facilities • Examine cost-effective formulary management techniques
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Recent Tax Changes for Tuition Reimbursement Benefit the Employer and the Employee
Excerpt: "As companies and organizations compete to attract and keep qualified employees, they're turning toward tuition reimbursement as way to build a talented team of loyal workers. And even though the tuition benefits offered by many companies have not kept pace with the spiraling cost of college courses, experts say workers still consider the assistance a valuable perk." (The Baltimore Sun; one-time registration required)
Employee Donations of Paid Time Off a Low-Cost Way of Providing an Employee-Friendly Benefit
Excerpt: "Only about 10 percent of businesses nationally that give paid sick or vacation leave let workers donate such time to others, according to the 2004 benefits survey by the Society for Human Resource Management." (Rochester Democrat and Chronicle)
Lawmakers to Seek Tax Break on Health Premiums for Federal Retirees
Excerpt: "Legislation that would permit federal and military retirees to pay their health insurance premiums with pretax dollars will be introduced in Congress today." (The Washington Post; one-time registration required)
Minimizing the Hassle Factor of the HIPAA Security Rule's Business Associate Provisions
Excerpt: "The final security rules, which take effect in April 2005, mandate additional provisions to heighten a BA's obligations to implement administrative, physical and technical safeguards to reasonably and appropriately protect the confidentiality, integrity and availability of electronic protected health information that is created, maintained or transmitted under the business associate agreement, ...." (REPORT ON PATIENT PRIVACY via AISHealth.com)
Texas Bill Would Limit 'Balance Billing'
Excerpt: "A proposal in the Texas Senate would prevent some providers in some cases from billing patients for the difference between the providers' charges and the 'usual and customary rates' paid by an insurer, a practice described as 'balance billing.' The proposal would apply to out-of-network providers caring for a hospital patient initially treated by a network provider." (Modernhealthcare.com)
'Evidence-Based Medicine' Is All the Rage in Healthcare; Are Patients Getting Caught in the Middle?
Excerpt: "Evidence-based medicine is a complicated issue. Meant to ensure more rigorous and consistent science, it often induces more confusion than clarity. In some ways, evidence-based medicine is more about treating populations than individual people. If it takes 5,000 mammograms to save one life, then the value of mammograms depends on who you ask. For that one person whose life was saved, the mammogram was nothing short of the messiah. For the other 4,999, it didn't change much in ...." (Los Angeles Times; one-time registration required)
Consumer Directed Health May Prompt Providers to Change Protocols and Increase Price Transparency
Excerpt: "To date, few health care providers have had much experience with -- or have even heard of -- CDH plans. The few who are familiar with the concept, though, worry that the high deductibles associated with the plans will translate to patient-collection problems and increased bad debt." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
EBRI Notes: The Relationship Between Income and Health Insurance (PDF)
Pages 2-6 of 20. Excerpt: "Individuals with a family income of $50,000 a year or more account for about 25 percent of the uninsured population in the United States, government data indicate, and the number is growing slightly faster than for those with lower incomes. But a new analysis by the Employee Benefit Research Institute (EBRI) finds that number is too high and a more realistic share of the 'high-income uninsured' is about 18 percent." (Employee Benefit Research Institute)
Comments: Mandatory Arbitration Clauses and Their Interaction with ERISA
Excerpt: "With mandatory arbitration clauses becoming more and more popular with employers, it is predictable that issues will continue to arise in the courts regarding how these clauses are impacted by ERISA. The recent Sixth Circuit case of Simon v. Pfizer, 2005 U.S. App. LEXIS 2881 (6th Cir. 2005) provides some good background regarding the narrow issue of whether or not ERISA preempts arbitration under the Federal Arbitration Act ..., even though the court in the end declined to rule ...." (Attorney B. Janell Grenier via BenefitsBlog.com)
Links to Items on Executive Comp, Benefits in General
The New FASB Stock Plan Accounting Rules: How Will They Affect Stock Plan Design?
Excerpt: "Accounting (and tax) considerations should follow, not lead, the decision to establish and maintain an employee ownership program. Employee stock programs are implemented for many sound reasons other than the provision of compensation with advantageous accounting impact." (Leading Companies Online Magazine via Beyster Institute)
The New FASB Stock Option Expensing Rules -- What Do They Mean for Privately Held Companies?
Excerpt: "The Financial Accounting Standards Board (FASB) released its controversial pronouncement on accounting standards for employee stock programs, FASB Statement No. 123 (revised 2004) ('SFAS 123(R)'), on December 16, 2004. SFAS 123(R) applies to all compensatory employee stock programs, other than qualified ESOPs." (Leading Companies Online Magazine via Beyster Institute)
Corporate America Prepares for Graying Shoppers and Employees
Excerpt: "Amid all the talk about changing Social Security, an equally important retirement issue is being overlooked. Millions of Americans are nearing retirement age, and there won't be enough younger workers to fill their shoes. By 2010, one-third of the U.S. workforce will be older than 50, and American businesses will be depending on older workers not only to buy their products, but also to sell them." (Knight Ridder Newspapers via Myrtlebeachonline.com)
Fact Sheet: Finances of Employee Benefits, 1960 - 2003 (PDF)
Pages 14-17 of 20. Excerpt: "This fact sheet uses the latest data (for 2003) from the Bureau of Economic Analysis' (BEA) 'National Income and Product Accounts of the United States,' as published in the Survey of Current Business. These benefit programs provide substantial financial support for individuals during their working lives (i.e., health insurance and unemployment insurance) and during retirement (i.e., Social Security, pension plans, and Medicare)." (Employee Benefit Research Institute)
Text: Broad-Based Stock Option Plan Transparency Act: H.R. 913 (PDF)
6 pages. Excerpt: "To direct the Securities and Exchange Commission to require enhanced disclosures of employee stock options, and to require a study on the economic impact of broad-based employee stock option plans, and for other purposes." (U.S. Representatives Dreier and Eshoo via American Benefits Council)
Study of Employee Benefits Trends: Findings from the 2004 National Survey of Employers and Employees (PDF)
44 pages. Excerpt: "The results of this study demonstrate a number of significant trends. An unsteady job market and uncertain economy have made employees worry about having enough money to pay bills during a period of income loss, cited as the most important benefits-related concern by 71% of all full-time employees. Yet, while employees are very concerned about big issues such as income protection (71%), healthcare (59%) and outliving their retirement savings (49%), they value immediate-...." (MetLife)
Newly Posted Events
Critical Issues in Employee Benefits Law
in District of Columbia on March 9, 2005
presented by ERISA Industry Committee
Consumer-Driven Health Care - Winning Communication Strategies
in New Jersey on March 16, 2005
presented by International Society of CEBS - Northern New Jersey Chapter
Electronic Records Management and Digital Discovery
in Illinois on May 12, 2005
presented by ALI-ABA (American Law Institute-American Bar Association)
Qualified Plan Seminar
in Wisconsin on April 26, 2005
presented by Actuarial Systems Corporation (ASC) and Global Benefit Advisors (GBA)
Qualified Plan Seminar
in Colorado on May 11, 2005
presented by Actuarial Systems Corporation (ASC) and Global Benefit Advisors (GBA)
Qualified Plan Seminar
in North Carolina on May 13, 2005
presented by Actuarial Systems Corporation (ASC) and Global Benefit Advisors (GBA)
Qualified Plan Seminar
in Texas on May 20, 2005
presented by Actuarial Systems Corporation (ASC) and Global Benefit Advisors (GBA)
Qualified Plan Seminar
in Massachusetts on May 25, 2005
presented by Actuarial Systems Corporation (ASC) and Global Benefit Advisors (GBA)
Self-Funded Workshop
in Ohio on May 10, 2005
presented by SunGard Corbel
Self-Funded Workshop
in Arizona on May 12, 2005
presented by SunGard Corbel
Self-Funded Workshop
in Texas on May 16, 2005
presented by SunGard Corbel
Self-Funded Workshop
in District of Columbia on May 18, 2005
presented by SunGard Corbel
Self-Funded Workshop
in Georgia on May 20, 2005
presented by SunGard Corbel
Newly Posted Press Releases
High-Income Uninsured Families Not As Prevalent As Data Indicate
(Employee Benefit Research Institute (EBRI))
Gender Differences in Annuity Income
(Employee Benefit Research Institute (EBRI))
ERIC Calls On Senate Finance Committee To Protect Robust Voluntary Pension System
(ERIC (ERISA Industry Committee))
MetLife Discusses How to Create a Standout Retirement Plan During Webcast on Economist.com
(MetLife)
Newkirk Launches Redesigned Website
(Newkirk Products, Inc.)
Five Retirement Rules of Thumb
(National Association for Variable Annuities (NAVA))
Newly Posted or Renewed Job Openings
Account Executive - Columbia, Maryland Washington D.C.
for Transamerica
in DC
Pension Consultant – Special Projects
for Primark Benefits Primark Benefits
in CA
Retirement Benefits Operations Manager
for JELD-WEN
in OR
Client Services Manager - Detroit, MI
for American United Life Insurance Company
in MI
Trust Assistant
for Regions Bank
in AR
Paralegal Junior Administrator
for WESPAC
in CA
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