March 17, 2005 Today's sponsor: NCEO (Click on company name or banner to learn more.) Check out the new publications by the NCEO in the BenefitsLink Bookstore! The National Center for Employee Ownership (NCEO), a nonprofit membership and research organization that provides information on broad-based employee stock plans, now has over a dozen of its most popular publications available for purchase in the BenefitsLink bookstore. Topics range from employee stock ownership plans (ESOPs) to stock options to employee stock purchase plans (ESPPs). (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Overview: New DOL Guidance on ERISA Disclosure Requirements for Insurers Excerpt: "ERISA health and welfare benefit plans that provide benefits through insurance policies or contracts must include information about the related fees and commissions on their Form 5500 annual reports. But plan administrators must rely on insurers to provide this information, and a recent Department of Labor advisory opinion indicates some insurers may be underreporting commission and fee payments made to brokers and agents." (Deloitte) NPR's 'All Things Considered' Examines New Maine DirigoChoice Health Insurance Plan Excerpt: "NPR's 'All Things Considered' on Tuesday examined the new Maine DirigoChoice health insurance plan, which began to provide coverage to small businesses and self-employed residents on Jan. 1. According to NPR, DirigoChoice takes a 'different approach' to efforts to expand health coverage with a focus on small businesses, the 'backbone' of the rural economy in Maine." (Kaiser Family Foundation) Standard Unique Health Identifier for Health Care Providers: National Provider Identifier Standard Excerpt: "The NPI must be used by most covered entities for all electronic HIPAA-compliant transactions by May 23, 2007. Assignment of NPIs is scheduled to begin May 23, 2005." (HIPAAdvisory.com) Use of Computerized Clinical Support Systems in Medical Settings: United States, 2001–03 (PDF) 9 pages. Excerpt: [from HIPAAdvisory.com] 'Less than a third of the nation's hospital emergency and outpatient departments use electronic medical records, and even fewer doctors' offices do, according to a report released today by the Centers for Disease Control and Prevention (CDC). About 31 percent of hospital emergency departments, 29 percent of outpatient departments, and 17 percent of doctors' offices have electronic medical records to support patient care, ...." (National Center for Health Statistics) Tiered Health Insurance Pricing for Workers Gets a Closer Look from Employers Excerpt: "In 2004, worried about whether its less-affluent workers could keep bearing the burden of spiking health-care costs, Davidson College tried using pay-based premiums for the 550 employees in the CIGNA point-of-service plan. 'We were concerned that so much of the burden, vis-à-vis take-home pay, was being shouldered by lower-paid employees,' says Carl Sorensen, the college's director of human resources. 'We wanted to rectify that, because it was not equitable.'" (PLANSPONSOR.com; one-time registration required) Local New Hampshire Lawmaker Fights to Lower Health Insurance Premium Costs Excerpt: "Lobbyists for the big HMOs testified Tuesday on the benefits of keeping the state's new insurance law, which lets the carriers charge higher premiums to employer groups with ill and older workers." (Portsmouth Herald) Opinion: 'Health Care Is Expensive, But Inadequate Treatment Is Even More Expensive' Excerpt: "Health care is expensive, but inadequate treatment is even more expensive. This is a lesson the German government has yet to learn. For years much of the world has been a free rider on U.S. medical R&D. Most industrialized states rely on a mix of price and volume controls to limit pharmaceutical spending. These governments expect American drug makers to keep supplying their products, almost irrespective of price." (Wall Street Journal Europe via Cato Institute) Overview: Qualifying Retiree Pres.cription Drug Coverage (PDF) 2 pages. Excerpt: "Beginning in 2006, Medicare beneficiaries can sign up for pres.cription drug coverage under Medicare Part D. This means that employers will soon have to decide whether or not they want to continue to provide pres.cription drug coverage for retirees. Employers deciding to continue coverage and apply for the federal subsidy will need to take a number of steps before September 30, 2005. The [target page] describes what employers have to do in order to apply for the subsidy." (Seyfarth Shaw LLP) Employee Insurance Plans Leave Many Texans Unprotected from Financial Ravages of Mental Illness Excerpt: "Until the U.S. Congress mandates insurance parity for Medicare and ERISA, the voluntary cooperation of Houston's large employers in providing workers with adequate mental health coverage would serve as an example of compassion and enlightened self-interest. As business proponents such as Mattress Mac attest, parity coverage spares workers needless suffering while saving employers money." (Houston Chronicle) Links to Items on Executive Comp, Benefits in General Demography Is Not Destiny, Revisited (PDF) 120 pages. Excerpt: "This report provides a framework and some of the basic data necessary to understand why the future of the United States will not be determined solely by anticipated changes in the size and age distribution of the population. Choices made through the political process and through market forces, in conjunction with demographic changes, will determine the future, the authors say." (Center on an Aging Society, Georgetown University via The Commonwealth Fund) Michigan Ruling Goes Against Same-Sex Benefits: Proposal 2 Limits Options for Public Employees Excerpt: "Defining marriage as the union of one man and one woman, as Michigan voters did with Proposal 2 in November, also signals the end of health care and other benefits for the same-sex partners of public employees in the state, according to an opinion issued Wednesday by Attorney General Mike Cox." (Detroit Free Press) Same-Sex Partners of State and Local Government Employees Lose Benefits in Michigan Excerpt: "Fueling a growing controversy over voter approval of Proposal 2 last fall, Attorney General Mike Cox ruled Wednesday that state and local governments are now prohibited from extending their benefits packages to same-sex partners of employees." (The Detroit News) NYC Council Will Seek to Reinstate Law Giving Domestic Partners Benefits Excerpt: "A day after a defeat in court, City Council members said yesterday that they would continue their legal push for a law requiring companies that do business with New York City to extend the same benefits to employees' domestic partners that they provide to spouses." (The New York Times; one-time registration required) United Airlines Ends Special Executive Retirement Plan Excerpt: "United Airlines said Wednesday in a regulatory filing that it has ended a special executive retirement program that protects their pension payments to save money. The supplemental retirement plan was ended on March 11, the airline disclosed in a 10-K filing with the U.S. Securities and Exchange Commission. It works by ensuring pension income when the benefits can't be paid because of IRS limits, United said in the filing." (MarketWatch) Compensation of Non-Profit Organization Executives Excerpt: "On target page, perform a quick search to find Form 990 Extracts. Retrieve data from ERI's library of close to 2 million Form 990, 990PF, and 990EZ reports." (Economic Research Institute) Summary: Employer Costs for Employee Compensation -- December 2004 Excerpt: "Employer costs for employee compensation averaged $25.57 per hour worked in December 2004, the U.S. Department of Labor's Bureau of Labor Statistics reported today. Wages and salaries, which averaged $18.07, accounted for 70.7 percent of these costs, while benefits, which averaged $7.50, accounted for the remaining 29.3 percent." (U.S. Bureau of Labor Statistics) Hewitt Federal Legislation Quick Guide Updated as of March 15, 2005 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) Overview: USERRA Notice Requirements Excerpt: "Effective March 10, 2005, the Department of Labor (DOL) issued an interim final rule requiring employers to provide its employees with notice regarding their rights, benefits and obligations under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA provides employment and reemployment rights to members of the uniformed services, including veterans and members of the Reserve and National Guard." (Ballard Spahr Andrews & Ingersoll, LLP) Feds Concerned About Problems with Plan Audits: Hiring Right Plan Auditor Crucial to Avoid Trouble Excerpt: "Pick your plan auditor carefully. The US Department of Labor is watching for slip-ups. Federal officials have made it clear that they are looking more closely at the quality of plan audits. A Department of Labor study found many auditing problems, and a DoL official was quoted in December saying that the agency plans to inspect the quality of audits. .... Generally, a plan must be audited if it has at least 100 participants." (PLANSPONSOR.com; one-time registration required) Newly Posted Events Executive Compensation - Strategy, Design, and Implementation in New York on June 23, 2005 presented by ALI-ABA (American Law Institute-American Bar Association) Form 5500 Workshop in Missouri on April 28, 2005 presented by SunGard Corbel Form 5500 Workshop in North Carolina on April 28, 2005 presented by SunGard Corbel Form 5500 Workshop in California on April 28, 2005 presented by SunGard Corbel Form 5500 Workshop in Washington on May 3, 2005 presented by SunGard Corbel Form 5500 Workshop in New Mexico on May 5, 2005 presented by SunGard Corbel Form 5500 Workshop in Pennsylvania on May 5, 2005 presented by SunGard Corbel Form 5500 Workshop in California on May 5, 2005 presented by SunGard Corbel Form 5500 Workshop in Texas on May 12, 2005 presented by SunGard Corbel Form 5500 Workshop in Minnesota on May 12, 2005 presented by SunGard Corbel Form 5500 Workshop in Nebraska on May 12, 2005 presented by SunGard Corbel Form 5500 Workshop in Georgia on May 12, 2005 presented by SunGard Corbel Form 5500 Workshop in Colorado on May 12, 2005 presented by SunGard Corbel Form 5500 Workshop in Indiana on May 18, 2005 presented by SunGard Corbel Form 5500 Workshop in Kansas on May 18, 2005 presented by SunGard Corbel Form 5500 Workshop in Washington on May 18, 2005 presented by SunGard Corbel Form 5500 Workshop in New York on May 19, 2005 presented by SunGard Corbel Form 5500 Workshop in Texas on May 19, 2005 presented by SunGard Corbel Form 5500 Workshop in Ohio on May 25, 2005 presented by SunGard Corbel Form 5500 Workshop in Iowa on May 25, 2005 presented by SunGard Corbel Understanding the Basics of Deferred Compensation Nationwide on March 22, 2005 presented by Retirement Capital Group Newly Posted Press Releases Statement of U.S. Secretary of Labor Elaine L. Chao On Passage of Association Health Plan Legislation in House of Representatives (U.S. Department of Labor, Employee Benefits Security Administration (EBSA)) Council Congratulates Pension Reformer Portman On Today’s Trade Representative Nomination (American Benefits Council) National Business Group on Health Announces Winners of its President's Awards for Excellence in Health Care Benefits (National Business Group on Health) More Employers Adopting Health Management, Consumer-Directed Health Plans to Control Costs (National Business Group on Health) Pittsburgh Business Group on Health Announces Health Care Benefits and Cost Management Program (Pittsburgh Business Group on Health) 401(k) Advisor Support Platform Adds PlanTools (Professional Capital Services, LLC) Newly Posted or Renewed Job Openings Manager of U.S. Compensation and Benefits for 2 Billion + NYSE Leading International – Heavy Industrial Manufacturing Firm in IL Health Management Design Consultant for Hewitt Associates in CT Retirement Plan Administrative Associate for CPA Consulting Firm in Richardson, Texas in TX Pensions/401(k) ERISA Compliance Specialists for Parker White Consultants, Inc. in Northern New Jersey in NJ Health & Welfare Benefits Analyst for PRECEPT in CA Retirement Associate for Towers Perrin in PA HM Pharmacist Consultant for Hewitt Associates in IL HM Pharmacist Consultant for Hewitt Associates in CA Handy Links:
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