| BenefitsLink Welfare Plans Newsletter |   |
May 5, 2005
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Playing the Annual Medicare Part D Employer Game with Pres.cription Drug Benefits
Excerpt: "Employers that plan to continue to provide pres.cription drug coverage to their Medicare eligible retirees need to begin preparing today for changes that will take place when Medicare Part D takes effect in 2006. Provided that they offer pres.cription drug benefits that are as good as, or better than, the standard Medicare Part D benefits, employers will be eligible to receive a federal subsidy of approximately 28% of the cost of providing pres.cription drug benefits." (Chicago Consulting Actuaries, LLC)
Unexpected Expense: Employees Must Pay Tax on Benefits for Domestic Partners
Excerpt: "[U]nmarried workers are finding that as one barrier falls, another remains standing: taxes. Whether in same-sex or heterose.xual unmarried unions, employees who take advantage of health care coverage for their partners are stuck with tax bills for the benefits. Under federal law, any portion of an employer-paid insurance premium that goes for coverage for a domestic partner is treated as taxable income to the employee." (The Washington Post; one-time registration required)
Paid Time Off Banks: Absent with Leave
Excerpt: "Paid time-off banks were introduced in the 1990s in the healthcare industry, a 24/7 operation where replacing staff at the last minute is expensive. The model has since branched to various sectors, from technology to insurance, reflecting the changing needs of the workplace with a growing number of dual-earning couples." (The Christian Science Monitor)
Senate Majority Leader to Introduce Healthcare IT Bill
Excerpt: "Senate Majority Leader Bill Frist (R-Tenn.) is preparing to introduce legislation that would address the technical requirements and financial incentives needed to help the healthcare system electronically exchange clinical information and achieve widespread adoption of computerized health records." (Healthcare IT News)
Private Health Care Payers Move Ahead with Pay-for-Performance Programs
Excerpt: "Although CMS often sets a standard for private health insurers in areas like payment systems and coverage policies, MCOs are far ahead of Medicare when it comes to pay-for-performance (P4P) programs." (MANAGED CARE WEEK via AISHealth.com)
Spotlight Shines on Health Savings Vehicles As More Plans Force Employees to Pick Up Tab
Excerpt: "HRAs and HSAs differ from traditional health plan designs in that they are part of a top-down trend that finally ties together health-care financing with consumption .... As such, prominent CEOs have backed President Bush's grand vision to arm Americans with the decision-support tools needed to help them shoulder more financial responsibility for their destiny." (PLANSPONSOR.com; one-time registration required)
Consumer-Directed Health Plans Should Increase Generic Drug Usage by Members
Excerpt: "Consumer-directed health (CDH) plans have the potential to increase generic substitution and reduce pres.cription drug spending among members while lowering or maintaining the overall medical trend, suggests a recent survey conducted by The Segal Company. Several CDH pioneers tell DBN they agree with these findings." (DRUG BENEFIT NEWS via AISHealth.com)
Demand Is on the Rise for Specialty Pharmacy Outcomes Reporting
Excerpt: "'What's your value proposition?' That is the question that is on every payer's mind when they consider specialty pharmacy providers. Until recently, many specialty pharmacy providers have responded to this question by describing state-of-the-art clinical programs and customer service along with a general reference to cost management and quality improvement." (SPECIALTY PHARMACY NEWS via AISHealth.com)
Consumer Driven Health Care: The Changing Role of the Patient (PDF)
38 pages. Excerpt: "An important byproduct is the quality of health care and service improves when patients are the ones who control the checkbook, rather than third-party insurers. Another important result is that costs will rise more slowly. Over 250 million consumers holding a tight rein on health care spending will do more to control costs than a few third-party bureaucrats working for HMOs." (National Center for Policy Analysis)
Census of AHIP Members Shows Enrollment in Health Savings Account Plans Doubled in Six Months
6 pages. Excerpt: "As of March 2005, 1,031,000 people were covered by HSA/HDHP products. This is more than double the HSA/HDHP coverage of 438,000 reported by AHIP members in September 2004 ...." (America’s Health Insurance Plans)
Benefit Costs Slow As Employers Shift Health Costs
Excerpt: "The rise in employee benefit costs has eased somewhat to 1.1% in the first quarter ended March, according to the Labor Department's latest Employment Cost Index (http://www.bls.gov/news.release/eci.nr0.htm)." (BenefitNews Connect)
Links to Items on Executive Comp, Benefits in General
Overview: Significant ADEA Developments Affecting Employee Benefits (PDF)
4 pages. Excerpt: "Several recent court rulings significantly increase the risks of ADEA litigation against employers over employee benefits." (Groom Law Group)
Overview: Bankrup.tcy Reform Bill Enacted (PDF)
4 pages. Excerpt: "President Bush has signed the Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) into law, generally effective for bankrup.tcy filings on or after October 17, 2005. .... BAPCPA also contains numerous provisions affecting employee benefits – e.g., retirement benefits, executive compensation and health insurance – in both individual and corporate bankrup.tcy filings. This For Your Information focuses on the benefit provisions of the new law." (Mellon Financial Corporation)
Newly Posted Press Releases
President Names Chair, Three Members To PBGC Advisory Committee
(Pension Benefit Guaranty Corporation (PBGC))
EBRI’s Salisbury Wins Lifetime Achievement Award
(Employee Benefit Research Institute (EBRI))
UMB Healthcare Services Division Announces Investment Options for Health Savings Account Services
(UMB)
Newly Posted or Renewed Job Openings
Benefits/Compensation Analyst
for Howrey Simon Arnold & White, LLP
in DC
Pension Administrator/Trust Accountant
for Primark Benefits
in CA
Pension Administrator
for Growing Pension Company
in MD
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