BenefitsLink Welfare Plans Newsletter June 17, 2005 Today's sponsor: IQPC (Click on company name or banner to learn more.) IQPC presents the 2nd annual Curbing Obesity through Workplace Wellness Programs Learn from leading wellness experts at companies such as Campbell Soup Company, Wellmark Blue Cross and Blue Shield, The Home Depot and PepsiCo Health Enhancement Program on how to best implement, run and maintain your wellness initiatives and programs. The early bird expires soon so register today with CODE: B156. Register by calling 1-800-882-8684. September 26-28, 2005 | San Diego | Hyatt Regency La Jolla (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) House Panel Backs Tax Relief for Health Insurance Premiums of Federal Retirees and Military Excerpt: "A bipartisan bill that would permit government retirees to pay their health insurance premiums with pretax dollars and allow military personnel to take a tax deduction for premium costs was approved yesterday on a voice vote by the House Government Reform Committee." (The Washington Post; one-time registration required) Senators Frist and Clinton Introduce Bill to Speed Health Care Information Technology Adoption Excerpt: "Senate Majority Leader Bill Frist (R-Tenn.) and Sen. Hillary Rodham Clinton (D-N.Y.) introduced a bill that would provide $625 million over five years for regional and local healthcare information technology projects, among other steps to speed IT adoption in the industry. .... The bill would establish legal safe harbors allowing hospitals and other organizations to extend their IT systems to doctors and medical groups, for example." (Modern Healthcare; one-time registration required) EBSA Advisory Opinion 2005-13A Sent to Washington State Dept of Labor and Industries on May 31, 2005 Excerpt: "[DOL was asked] whether section 514(a) of ERISA would preempt the application of certain leave substitution provisions in the Washington State Family Care Act to the Northwest Airlines, Inc. Sick and Occupational Injury Leave Plan for Employees." (U.S. Employee Benefits Security Administration) EBSA Advisory Opinion 2005-16A Sent to Conant Chiropractic Clinic , June 10, 2005 Excerpt: "[DOL was asked its opinion r]egarding the claims procedure regulation at 29 CFR 2560.503-1(h)(3) which requires the plan's named fiduciary deciding an appeal of a group health claim denied based on a medical judgment to consult with a physician or other health care professional that is licensed, accredited or certified to perform specified health services consistent with State law." (U.S. Employee Benefits Security Administration) EBSA Advisory Opinion 2005-15A Sent to Ning, Lilly & Jones, June 10, 2005 Excerpt: "[DOL was asked w]hether the Painting Industry of Hawaii Labor Management Cooperation Trust Fund is an 'employee welfare benefit plan' within the meaning of section 3(1) of Title I of ERISA." (U.S. Employee Benefits Security Administration) EBSA Advisory Opinion 2005-14A Sent to Ning, Lilly & Jones, June 10, 2005 Excerpt: "[DOL was asked w]hether the Hawaii Tapers Market Recovery Trust is an 'employee welfare benefit plan' within the meaning of section 3(1) of Title I of ERISA." (U.S. Employee Benefits Security Administration) California Officials Consider Using Surveys from NCQA to Regulate HMOs instead of State Survey Work Excerpt: "Regulators may let an industry accreditation group help monitor HMOs in California -- an idea that earns praise from some insurers but complaints from consumer activists and doctors who fear it would weaken oversight. The California Department of Managed Health Care regularly conducts surveys to determine whether health plans comply with state requirements. Turning some of that work over to the industry group would save money that could be used to expand department efforts ...." (Los Angeles Times; one-time registration required) Retail-Mail Order Combo Saves More Money, According to Walgreens Excerpt: "Walgreens says filling pres.criptions in a retail environment actually may save your clients more money than a mail-order plan would. The retail pharmacy chain found that its Advantage90 pharmacy management program, which allows employees to fill 90-day maintenance pres.criptions via mail order and at retail outlets, provides more savings than a mandatory mail-order plan does." (BenefitNews Connect) Interest in Mental Health Benefits Growing in China Excerpt: "Employees in Asia and elsewhere overseas ... are increasingly facing the same challenges as their Western counterparts. Long hours away from home. Sharply rising divorce rates. Stress on the job. The Chinese government is realizing that these characteristics ... mean it's high time for employee assistance programs to be more widely used in China. This month, more than 100 government officials, psychologists and human resources directors met in Beijing to discuss the use of EAPs ...." (Workforce Management; one-time registration required) Overview: CMS Provides Guidance on Creditable Coverage (PDF) 5 pages. Excerpt: "CMS has now provided further information on determining creditable coverage and has developed model disclosure notices. In meeting the notice requirement, employers have a great opportunity to communicate to eligible individuals what is in their best interests with respect to their pres.cription drug coverage." (Buck Consultants via Mellon) Overview: Medicare Part D Guidance Addresses Employer-Paid Rx Coverage for Retirees (PDF) 2 pages. The guidance discussed in this Bulletin discusses how the actuarial equivalence calculations required to receive a subsidy under Medicare Part D are made and how private Pres.cription Drug Plans (PDPs) can contract with employer-sponsored plans. (The Segal Company) Overview: CMS Issues Guidance on Notices of Creditable Coverage re Pres.cription Drug Plans (PDF) 2 pages. Excerpt: "By November 15, 2005, most group health plans that cover Part D-eligible individuals, whether active or retired, must provide Notices of Creditable Coverage. Group health plans that have applied to CMS to become a Pres.cription Drug Plan (PDP) under Part D or that contract with a Part D plan to provide a pres.cription drug benefit to its retirees are the exception to this notice requirement." (The Segal Company) Overview: New Notice Requirements for Employer Drug Benefits Must Be Issued by November 15 Excerpt: "Employers that sponsor pres.cription drug benefit plans have new notice requirements. .... Employers must notify participants in their pres.cription drug coverage ... whether the employer's pres.cription drug coverage is as good, or better than, the new Medicare Part D drug benefit. This notice will allow the participants to determine whether to enroll in Medicare Part D or remain under the employer's drug coverage." (Ice Miller) Overview: Limited Relief From Use-It-Or-Lose-It Rule in Cafeteria Plan Flexible Spending Accounts ('FSAs') IRS has provided relief from the 'use-it-or-lose-it' rule for FSAs. Under that rule, contributions for a plan year are forfeited unless the participant incurs sufficient expenses within the plan year and requests reimbursement within the plan year or a specified 'run-out' period. To avoid forfeiture, some employees incur unnecessary (or advance) expenses at the end of the plan year. The new rule allows a grace period of up to 2½ months for incurring reimbursable claims after the plan year ends. (Sanders, Schnabel & Brandenburg, P.C., Washington, D.C.) Links to Items on Executive Comp, Benefits in General Overview: June 30 Deadline for Calendar Year Nonqualified Deferred Compensation Plans Excerpt: "In enacting Code §409A, Congress imposed strict deadlines on participant deferral elections made under a nonqualified plan. In general, a participant must make his/her election to defer before the beginning of the taxable year for which the compensation is payable. However, Code §409A contains a special timing rule for 'performance-based compensation.' Under the special rule, a participant can make a deferral election with respect to performance-based compensation as late as six ...." (SunGard Corbel) Article: New U.S. Law Restricts Deferral of Executive Compensation (PDF) 12 pages. Excerpt: "On October 24, 2004, the American Jobs Creation Act of 2004 became U.S. law. The Act contains many provisions, but the main provision of interest to employee benefits lawyers is one significantly restricting the ability of executives to defer compensation other than through U.S. tax-qualified plans." (Journal of the International Employee Benefits Lawyers Association via The Groom Law Group) Overview: June 30 Deadline to Elect Deferral of 2005 Performance Bonuses (PDF) 2 pages. Excerpt: "The landscape of deferred compensation has been substantially altered by Section 409A, which was added to the Internal Revenue Code by the American Jobs Creation Act of 2004 .... One of the provisions of Section 409A regulates the timing of elections to defer compensation. Generally, an individual must make an election to defer compensation for services performed in a particular calendar year no later than the end of the preceding calendar year." (Kirkpatrick & Lockhart Nicholson Graham LLP) Newly Posted Events What's New in Pharmacy Benefit Programs Nationwide on July 21, 2005 presented by International Foundation of Employee Benefit Plans Newly Posted Press Releases U.S. Labor Department Sponsors "Getting It Right" - Free Seminar To Help Plan Fiduciaries Comply With Retirement Law (U.S. Department of Labor, Employee Benefits Security Administration (EBSA)) ACLI Praises Introduction of Pension Annuity Reform Legislation (American Council of Life Insurers) Newly Posted or Renewed Job Openings Accounting Administrator in Trust Department for Associated Pension Consultants in CA Pension Professional for The Rosen Group, premier leader in placement of Benefit and Human Resource in VA Paralegal-Legal Affairs for American Express in MN Institutional Sales Representative for BISYS Retirement Services in PA ERISA/Employee Benefits Attorney for CORSARO & ASSOCIATES CO., LPA in OH Actuarial Specialist for Louis Kravitz & Associates in CA Defined Benefit Conversion Specialist for New York Life Investment Management LLC in MA Defined Contribution Forms Specialist for New York Life Investment Management LLC in MA ERISA Attorney for New York Life Investment Management LLC in MA Sales Consultant - Retirement Benefits for Diversified Investment Advisors in NC, TX Senior Consultant Health and Benefits for Health and Benefits Consulting in ANY STATE Senior Pension Administrator for Retirement Alliance, Inc. in NH Handy Links: View Today's Active Message Threads Search BenefitsLink Using the Web for Employee Benefits Research (hypertext article) Employee Benefits Library 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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