| BenefitsLink Welfare Plans Newsletter |   |
April 12, 2005
Today's sponsor: World Congress
(Click on company name or banner to learn more.)
| Innovation in the Cost-Appropriateness of Behavioral Health & Wellness |
| The Leadership Summit on Innovation in the Cost-Appropriateness of Behavioral Health & Wellness explores the costs of behavioral health to the Nation and the workplace. Stakeholders will discuss economic incentives and present successful cost-effective initiatives to provide quality, cost-appropriate behavioral health and wellness services. Featuring employer and government driven cost-reduction demands with health plan and provider collaboration the Summit showcases innovative behavioral health, pharma and wellness interventions and how to combine the best of both. |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Investment Choice Comes to Health Savings Accounts
Excerpt: "Until recently, HSA investing options were severely limited. When the Pirtles opened their HSA, most plans offered only fixed-rate accounts paying a puny 2% to 4%. Few allowed mutual fund or stock choices, primarily because balances were small and many people needed to have the money available to pay their medical bills. But now that HSA owners are accumulating thousands of dollars, they're demanding better long-term investments." (Kiplinger.com)
No COBRA Relief Based on Fiduciary Breach or Interference with Benefits
Excerpt: "The court's statement that statutory penalties are the only remedy for COBRA notice violations may be based on an unnecessarily broad reading of the cited Fifth Circuit opinion. In many jurisdictions, qualified beneficiaries have sued for (and won) damages for failure to provide COBRA coverage. Such lawsuits are filed under ERISA Section 502(a)(1)(B), which permits a lawsuit by a participant or beneficiary to recover benefits due under the terms of the plan." (Employee Benefits Institute of America Inc. (EBIA))
Overview: HIPAA Security Rules Soon in Effect –- CMS Issues Guidance on Filing HIPAA Complaints (PDF)
3 pages. Excerpt: "The notice also sets out the procedures that the CMS will follow in reviewing complaints. In outlining its procedures, the CMS notes that it will work with covered entities to obtain voluntary compliance. The CMS will not accept complaints for purposes of the security rule until that rule is in effect (i.e., after April 20, 2005).A CMS complaint form can be downloaded at http://www.cms.hhs.gov." (Mellon Financial Corporation)
Healthcare Providers Prepare for Latest HIPAA Security Rules
Excerpt: "[T]he security regulations require healthcare providers, health plans and clearinghouses to protect the confidence, integrity and availability of electronic patient information against improper access, disclosure and alteration through a series of administrative, technical and physical measures. These include conducting risk assessments, updating policies and procedures, training staff and reviewing agreements with business partners to ensure they meet the new standards." (Sacramento Business Journal via bizjournals.com; one-time registration required)
Ask the Analyst -- Inaugural Column of Katherine A. Durso, Ph.D., for Employee Benefit News
Excerpt: "In 2004, EBN ran a series of articles by Katherine Durso, a senior consultant with Ingenix, a health care data, analysis and application company. .... This year, we asked Katherine to answer readers' questions on the application and analysis of health data, and how this information can help them improve their existing health programs or design new initiatives." (Employee Benefit News)
Lawmakers Plan to Introduce Health IT Bills
Excerpt: "Reps. Tim Murphy (R-Pa.) and Patrick Kennedy (D-R.I.) plan to introduce a bill that would create grants to help providers adopt health care information technology, Healthcare IT News reports. Supporters say the legislation would help prevent medical mistakes, reduce waste and boost efficiency in the health care industry." (California HealthCare Foundation)
Employers Can Start Smart on Wellness Programs with Health Risk Assessments
Excerpt: "If you are considering implementing a new wellness initiative in the workplace, you can help ensure success by asking workers to take a health risk assessment first." (Employee Benefit News)
Los Angeles Times Examines Shift from HMO Plans to Preferred Provider Organizations
Excerpt: "The Los Angeles Times on Saturday examined the declining membership in HMOs as consumers increasingly choose to enroll in preferred provider organizations, 'which offer greater choice of physicians and hospitals and direct access to specia.lists -- though at a higher price.'" (Kaiser Family Foundation)
Drug Prices Outstrip Inflation -- According to Study, Brand Names' Cost Up 7.1% Last Year
Excerpt: "Wholesale prices for popular brand-name pres.cription drugs rose an average 7.1% in 2004, more than twice the general inflation rate, a new study commissioned by the nation's largest seniors lobby says." (USA TODAY)
The Retiree Drug Subsidy: Why Employers and Union Plan Sponsors Should Consider It (PDF)
5 pages. Excerpt: "[P]lan sponsors that wish to participate in the retiree drug subsidy program have several different approaches for combining that coverage with hospital, surgical, and other non-pres.cription health plan benefits. These can include the use of Medicare Advantage (MA) plans or other types of coverage." (The ERISA Industry Committee)
Judge Dismisses Reimportation of Pres.cription Medication Suit Against Federal Government
Excerpt: "A lawsuit seeking to compel the Bush administration to legalize the purchase of pres.cription drugs from Can.ada -- filed by a married couple at the behest of Illinois Gov. Rod Blagojevich (D) -- on March 31 was dismissed by U.S. District Judge James Robertson, the Chicago Tribune reports." (The National Journal Group, Limited via BlueCross BlueShield Association)
CDHP Scorecard - - Stage Set for HSAs to Shine Among Consumer-Driven Health Plans
Excerpt: "Employers may well make the health savings account a benefits star this year. President Bush has one. Vendors seem to be offering new HSA products by the day. And rising health trends are pushing companies to try tougher measures to stem costs. The delay in guidance from the Treasury Department ended chances that HSAs would be a runaway hit this year, but with a fresh start for the 2006 plan year, the tax-advantaged account might take off." (Employee Benefit News)
Information, Please: Firms Connect Workers with Data for Better Health and Disease Management
Excerpt: "Some of the nation's largest employers have streamlined access to health information in an effort to engage employees in managing their health. They're setting up a single telephone hotline and a single Web portal for all things health-related, from eating a healthy diet to selecting a hospital to enrolling in a disease management program." (Employee Benefit News)
Overview: IRS Rules HRA Exclusion Lost If HRA Amounts Available for Non-Medical Expenses at Any Time (PDF)
3 pages. Excerpt: "Revenue Ruling 2005-24 reconfirms that HRAs may be used only to reimburse medical expenses. In addition, by sanctioning the contribution of unused vacation and sick leave to an HRA, it provides additional opportunities for employers to provide tax-free medical benefits to retirees." (Mellon Financial Corporation)
Trial Court Blocks EEOC Retiree Health Benefits Regulations, Ruling They Exceed Agency's Authority
Excerpt: "The decision is disappointing news for employers with retiree health plans, whose quest for relief in this area seems unlikely to end any time soon. Although the EEOC plans to appeal the decision to the Third Circuit, it cannot be assumed that this will provide a favorable result for retiree health plan sponsors--the Third Circuit's decision in the Erie case, which was issued only five years ago, was the crux of the trial court's ruling." (Employee Benefits Institute of America Inc. (EBIA))
Lack of Price Information Slows Account-Based Health Enrollment Trends
Excerpt: "Many health industry watchers believe that 2005 will be the year of the health savings account. While it appears employers are ready to send their charges out into the wild and wooly health care market, is the market ready for them? What types of tools are available to ensure that consumers give up their 'skin' wisely?" (Employee Benefit News)
Links to Items on Executive Comp, Benefits in General
Overview: Securities and Exchange Commission Staff Guidance on Option Expensing Rules Compliance
Excerpt: "The SEC Staff's recent Accounting Bulletin outlines their position on valuation issues, including appropriate valuation models and assumptions." (Chicago Consulting Actuaries, LLC)
Court Rules that Old Claims Procedure Regulations Were Satisfied by Substantial Compliance
Excerpt: "The insurer in this case denied long-term disability benefits to the participant. The participant appealed the denial, but not until approximately 20 months after receiving the denial notice. The insurer rejected the appeal because it was untimely. When the participant sued, the insurer argued that the court should not hear the claim because the participant failed to appeal the denied claim and, therefore, had failed to 'exhaust' administrative remedies under the plan." (Employee Benefits Institute of America Inc. (EBIA))
Overview: DOL Updates Voluntary Fiduciary Correction Program
Excerpt: "[T]he proposals add three new transactions to the list of transactions eligible for correction under the VFC Program, simplify the methods for calculating amounts that must be restored, and streamline documentation requirements. Even though the changes are proposed, employers and other fiduciaries can begin using the amended and restated VFC Program immediately." (Deloitte)
IRS Employee Plans Examination Areas Realignment
Excerpt: "After extensive study, the EP Examination field structure has been realigned from six areas into ... five areas." (Internal Revenue Service)
Newly Posted Events
Introduction to Retirement Plans
Nationwide on October 11, 2005
presented by McKay Hochman Co., Inc.
McKay Hochman Second Quarter 2005 Update
Nationwide on May 12, 2005
presented by McKay Hochman Co., Inc.
McKay Hochman Second Quarter 2005 Update
Nationwide on May 13, 2005
presented by McKay Hochman Co., Inc.
The LeapFrog Group and The National Business Coalition on Health's Incentives & Rewards Workshop
in District of Columbia on May 19, 2005
presented by National Business Coalition on Health
What's New on the Form 5500
Nationwide on June 23, 2005
presented by McKay Hochman Co., Inc.
Newly Posted Press Releases
Digital Documents, LLC Announces Results of an Independent Audit Review of Their Document Scanning and Indexing Quality Using Version 4.0 of dDSpeedScan®.
(Digital Documents, LLC--The Leader in Document Scanning and Imaging Services)
Newly Posted or Renewed Job Openings
Client Services Technical Analyst
for ICMA-RC
in DC
Client Relationship Manager
for Retirement Capital Group, Inc.
in CA
HIPAA Technical Analyst/Jr Programmer
for Great-West Corporate
in CO
Cafeteria Consultant
for Polycomp Administrative Services, Inc.
in CA
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