| BenefitsLink Welfare Plans Newsletter |   |
May 12, 2005
Today's sponsor: Employee Benefits Institute of America Inc. (EBIA)
(Click on company name or banner to learn more.)
| Register for EBIA's Tele-Web Seminar |
| Both group health plans and 401(k) plans must comply with special requirements under USERRA for employees on military leave. On May 25, 2005, EBIA will present a 90-minute intermediate-level tele-web seminar designed to provide practical advice to employers, advisors, and administrators.
The seminar will cover required notices, continuation requirements, cafeteria plan elections during leave, reinstatement rights, 401(k) plan make-up contributions, and more! See the registration form for more details. Another great EBIA seminar! |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Georgia State Workers Who Smoke Will Pay More for Health Insurance
Excerpt: "Teachers and other state employees who smoke will have to pay $40 a month more for health insurance starting July 1. Employees are fuming over the surcharge, which hits state workers, public school teachers and their families who admit to smoking or using tobacco in the past 12 months." (The Atlanta Journal-Constitution; one-time registration required)
Disease Management Companies Struggle with HIPAA Privacy
Excerpt: "Two years after the privacy rule went into effect, DM company representatives report that, while their worst fears have not been realized, it has not been business as usual, either. They note confusion in the public, increased resistance from some providers and difficulty meeting state laws. Some are also apprehensive that the federal government may increase scrutiny of DM companies in the future." (REPORT ON PATIENT PRIVACY via AISHealth.com)
Why Are We Staying in Jobs Longer? Health Insurance Coverage Cost Prohibitive for Early Retirees
Excerpt: "In a survey ... of employer-sponsored health plans, Mercer found that the average cost to employers who provided coverage to pre-Medicare-eligible retirees was nearly $8,250. The cost would be even higher for an individual seeking coverage on his own and would increase even more if a spouse was added to the plan. 'You are talking five-figure costs for that individual every year until they get to age 65,' Gavlick said. [And], fewer companies are providing health insurance to retirees." (The Philadelphia Inquirer; one-time registration required)
Health Plans Use Variety of Tactics to Boost E-Prescribing by Doctors
Excerpt: "Despite growing recognition of the potential of electronic prescribing to improve patient safety and control pharmacy costs, utilization of the technology has increased slowly. Take-up rates may start to grow more quickly, however. A new generation of e-prescribing programs features refined incentives and more targeted interventions to encourage participation. Meanwhile, collaborative efforts among employers and insurers are deepening the reach of such initiatives in some markets." (MANAGED CARE WEEK via AISHealth.com)
Association Health Plans: No State Regulation Means Loss of Protections for Consumers, Small Biz (PDF)
54 pages. Excerpt: "A new report from the Blue Cross and Blue Shield Association (BCBSA), entitled 'Association Health Plans: No State Regulation Means Loss of Protections for Consumers, Small Employers and Providers,' provides a comprehensive overview of key state consumer protections that would be lost if federal association health plan (AHP) legislation is enacted by the U.S. Congress." (Blue Cross and Blue Shield Association)
Kansas State Initiative to Address Small-Business Uninsured
Excerpt: "Kansas Gov. Kathleen Sebelius has signed legislation aimed at addressing the uninsured problem for the employees of small businesses in the state. S.B. 272, which creates the Kansas Health Authority, gives the governor the power to appoint a committee to explore opportunities and encourage employer participation in health plans developed by the committee for low- and modest-wage workers employed by small employers." (Business Insurance)
Large HSAs That Increase Competition Would Improve Consumerism
Excerpt: "While health savings account (HSA)-based health plans give consumers greater control over their health care spending, they do not eliminate the 'current bias' toward excess health insurance coverage, says Michael Cannon, director of health policy studies at the Cato Institute, a Washington, D.C.-based think tank." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
Links to Items on Executive Comp, Benefits in General
May 23, 2005 Deadline for Settling Compensatory Stock Options Transferred to Related Persons (PDF)
Excerpt: "Notice 2003-47 identifies as a listed transaction for purposes of sections 6111 and 6112 ... a transaction ... in which an officer, director, or employee ... to whom a compensatory nonstatutory stock option or restricted stock is granted ... transfers the option or restricted stock to a related person in exchange for a deferred payment obligation.... Taxpayers have until May 23, 2005, to notify the Service of their intent to participate in the settlement described in the announcement." (Internal Revenue Service)
Cisco Systems Pushes a New Twist on Employee Stock Options
Excerpt: "Adding a new twist to the continuing fight over the expensing of employee stock options, Cisco Systems is seeking regulatory approval for a novel financial instrument that could allow the company to assign a lower value to the stock options than under current valuation models." (The New York Times; one-time registration required)
Spitzer Probes Raise Fears of Employer Liability in Employee Benefits Administration
Excerpt: "Eliot Spitzer, the New York state attorney general (below), has brought big companies to heel. But his probes will have consequences for little guys, too. That's because his investigations have underscored the idea that employers have a fiduciary responsibility to ensure that employees are not overcharged for benefits. If your 401(k) provider or insurance company overcharges your workers, you may be liable. This news has set the staid benefits-administration world abuzz." (Inc. Magazine)
Cracks Grow in Retirement Nest Eggs: Pensions, Social Security and Medicare Are Looking Shaky
Excerpt: "A court decision Tuesday that frees United Airlines from its pension fund obligations leaves the carrier's employees face-to-face with a growing reality for U.S. workers: The retirement of the future will be a lot less secure. Years ago, it was easy for the federal government and employers to promise retirement benefits; .... But it's not so easy to make good on those promises now that the baby boom is on the verge of retirement and the cost of meeting those obligations has swelled." (St. Petersburg Times)
CBO Paper: The Effects of Reserve Call-Ups on Civilian Employers (PDF)
42 pages. Excerpt: "This Congressional Budget Office (CBO) report examines the combined effects of reservists' activations and federal job protections on civilian employers. It also addresses the question of financial losses among self employed reservists, a group that some people maintain deserve special assistance because they may have experienced particularly negative effects from the recent rise in activations." (Congressional Budget Office)
Newly Posted Events
Fundamentals of 401(k) Plans
in North Carolina on June 2, 2005
presented by SunGard Corbel
Fundamentals of 401(k) Plans
in Minnesota on June 9, 2005
presented by SunGard Corbel
Fundamentals of 401(k) Plans
in Texas on June 9, 2005
presented by SunGard Corbel
Fundamentals of 401(k) Plans
in Kansas on June 23, 2005
presented by SunGard Corbel
Fundamentals of 401(k) Plans
in Texas on June 29, 2005
presented by SunGard Corbel
Fundamentals of Qualified Plans
in Ohio on June 29, 2005
presented by SunGard Corbel
Fundamentals of Qualified Plans
in Washington on June 29, 2005
presented by SunGard Corbel
Plan Design Workshop - Exploring New Directions
in District of Columbia on June 15, 2005
presented by SunGard Corbel
Plan Design Workshop - Exploring New Directions
in Texas on June 16, 2005
presented by SunGard Corbel
Plan Design Workshop - Exploring New Directions
in California on June 16, 2005
presented by SunGard Corbel
Newly Posted Press Releases
Many Companies Revamp Executive Compensation, Says Hewitt; Accounting and Governance Issues Lead to Major Changes
(Hewitt Associates LLC)
United Airlines Decision Underscores Need To Focus On Pension System, Not Just PBGC
(American Benefits Council)
New CPI Services Help Investment Professionals Manage Mutual Fund Short-Term Redemption Fees
(CPI Qualified Plan Consultants, Inc.)
Allied Pilots Association on United Airlines, Overall Pension Situation: 'Skeptical That Stripping Employee Benefits Will Ensure Long-Term Success'
(Allied Pilots Association (APA))
Newly Posted or Renewed Job Openings
Implementation Specialist
for ExpertPlan, Inc.
in NJ
Defined Benefit Plan Administrator
for Actuarial Consultants, Inc.
in CA
Sr Compensation Specialist
for JM Family Enterprises, Inc
in FL
Defined Benefit Administrator
for Creative Benefit Strategies, Inc.
in OH
Customer Support & Product Quality Manager: FSA Reimbursement Web Application
for BenSoft, Inc.
in CA
Benefits Associate - Global Consulting Group
for Towers Perrin
in NY
Actuarial Associate - Global Consulting Group
for Towers Perrin
in NY, PA
Reconciliation/Technical Analyst
for Professional Capital Services
in PA
Regional Vice President (Jacksonville/Orlando, FL)
for BISYS Retirement Services
in FL
Regional Vice President (Cleveland, OH)
for BISYS Retirement Services
in OH
Implementation Specialist
for Precept
in CA
Annual Plan Reporting Services Manager - PA
for Vanguard
in PA
Key Account Executive
for AIG VALIC
in ANY STATE
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Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.
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