| BenefitsLink Welfare Plans Newsletter |   |
April 21, 2005
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Consumer Directed Insurance Products: Survey Results (PDF)
32 pages. Excerpt: "Many of America's largest health insurers are now offering consumer directed (CD) products. The majority offer both Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). 95 percent of enrollees have access to existing networks and negotiated rate structures." (Federation of American Hospitals)
Comments to Senate Committee on Small Business and Entrepreneurship Hearing on Health Care
Excerpt: "SBCA, ASPPA, SBLC and ECFC strongly endorse S. 723, the SIMPLE Cafeteria Plan Act of 2005, introduced by the Senate Small Business and Entrepreneurship Chair, Olympia Snowe (R-ME), and co-sponsored by Senators. Kit Bond (R-MO) and Jeff Bingaman (D-NM). We applaud their efforts to enable small business employees to purchase health insurance and other employee benefits through a tax-qualified vehicle." (American Society of Pension Professionals & Actuaries)
Overview: IRS Rules Family Coverage of One Spouse Will Not Affect HSA Eligibility of Excluded Spouse (PDF)
2 pages. Excerpt: "The IRS recently issued Revenue Ruling 2005-25 in which it ruled that one spouse's family health coverage that does not cover the other spouse will not affect the HSA eligibility for that other spouse." (Mellon Financial Corporation)
Managing OPEB Costs under New GASB Rules: Available Funding Options Can Help Control Costs (PDF)
2 pages. Excerpt: "Last year the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits other than Pensions. This new standard will require governmental employers to account for post-retirement healthcare benefits on an 'actuarial basis' during an employee's career instead of using the current practice, which accounts on a 'pay-as-you-go' basis during retirement." (Milliman)
Overview: Court Decision May Hamper Employers' Ability to Reduce Retiree Health Care Programs
Excerpt: "In AARP v. Equal Employment Opportunity Commission, the U.S. District Court for the Eastern District of Pennsylvania blocked the EEOC from issuing a final rule that would permit employers to provide lesser retiree health benefits to retirees who are eligible for Medicare than to retirees who are not yet eligible for Medicare." (Littler Mendelson, P.C.)
Employers Push for FMLA Reforms
Excerpt: "Employer groups, worried about workers who abuse their FMLA rights, have proposed reforms to the federal legislation. Proposals include clarifying the definition of 'serious health condition' covered by FMLA, permitting employers to require minimum four-hour increments for FMLA leave and allowing employers to call doctors to verify FMLA claims." (BenefitNews Connect)
Debate Over Hospital Prices Plays Out in California
Excerpt: "Hospital charges are the behemoth of health spending, and efforts to control medical care inflation often focus upon hospitals. [H]ospitals want to maximize their revenue, while health insurers and their customers want to keep the bills as small as possible. Many health care players are watching as a case study plays out in California, where CalPERS, which provides health coverage for more than 1.4 million active and retired state and local workers, eliminated coverage at 24 ...." (California HealthCare Foundation)
Providers to Be in Compliance with New HIPAA Security Rule
Excerpt: "Physicians, hospitals, insurance companies and other health professionals on Thursday will be required to be in compliance with the Health Insurance Portability and Accountability Act security rule, which took effect April 1, the Wall Street Journal reports." (Kaiser Family Foundation)
Links to Items on Executive Comp, Benefits in General
Overview: Making the Most of the International Accounting Standard, IAS 19, Exercise
Excerpt: "[T]he implementation of the new international accounting standard, IAS 19, ... will affect the way companies listed on a European Union stock exchange will be required to account for the cost of their employee benefit arrangements .... Anyone ... responsible for compliance with this standard will be required to undergo an annual accounting exercise .... .... In this article, we explore some of the ways the IAS 19 exercise can be structured to achieve [worthwhile] outcomes." (Watson Wyatt Worldwide)
Overview: SEC Postpones Compliance Dates for FASB 123 Accounting for Share-Based Payment (PDF)
Excerpt: "The impetus behind the SEC's decision was in response to feedback received by companies and accounting firms regarding the difficulty implementing Statement 123R mid-year with respect to comparisons between fiscal quarters." (Kutak Rock LLP)
Survey Data Show Need for Personalized Benefit Statements
Excerpt: "The survey, conducted by Wells Fargo companies Acordia and Bryan, Pendleton, Swats & McAlister, reveals that the best way to communicate the costs of benefits to employees is through personalized benefit statements." (The Adviser)
The Brave New World of Deferred Compensation (PDF)
8 pages. Excerpt: "The American Jobs Creation Act of 2004 established a new tax regime for nonqualified deferred compensation arrangements, effective January 1, 2005. .... This article will first provide a summary of the tax rules and doctrines applicable to deferred compensation practices that led to the provisions of the act. It will then provide an overview of the major aspects of the new rules, taking into account Notice 2005-1." (Benefits & Compensation Digest via International Foundation of Employee Benefit Plans)
Newly Posted Events
New 401(k) Regulations, Default Rollovers, RMDs and the New 6-Year Document Update and Submission Cycle
in New York on May 5, 2005
presented by ASPPA Benefits Council of New York
Newly Posted Press Releases
Secretary of Labor Elaine L. Chao Testifies on Association Health Plans
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Newly Posted or Renewed Job Openings
Investment Consultant
for Stanley, Hunt, Dupree and Rhyne (a subsidiary of BB&T Corporation)
in NC
Account Executive - Retirement Services
for Principal Financial Group
in IN
401(k) Investment Analyst/Consultant
for 401(k) Advisors
in CA
Actuary (Enrolled)
for Emjay/Great-West
in WI
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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