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June 22, 2005
Today's sponsor: Lockton Benefit Group

(Click on company name or banner to learn more.)
Banner ad for Lockton Benefit Group

Optimizing Employee Benefits...by Design

Lockton is the nation's largest privately owned insurance brokerage and employee benefits consulting firm. Our private ownership allows us to deliver the most innovative and outstanding service with unwavering integrity. With 15 offices in 8 states and the District of Columbia, we are nationally positioned to meet our clients' every need. Our success is measured in our client retention rate, among the very highest in the industry. We live service!

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Overview: Decision Time for Retiree Health Plan Sponsors Regarding Medicare Part D
Excerpt: "Employers and unions that sponsor retiree health plans must soon decide whether to apply for a new federal subsidy, whether and how to integrate their existing plan benefits with the new Part D benefit and how to communicate these complex decisions to retirees. This article summarizes the options available to retiree health plan sponsors and describes the key implementation issues that sponsors face." (McDermott Will & Emery)

Overview: Guidance on Treatment of Health FSAs, HRAs, HSAs, and Archer MSAs under Medicare Part D
Excerpt: "CMS has issued guidance on whether certain account-based health arrangements can qualify for the tax-free retiree drug subsidy payments available under Medicare Part D and whether those arrangements are to be considered in determining whether a beneficiary is receiving creditable coverage." (Employee Benefits Institute of America Inc.)

Massachusetts Governor Proposes Compulsory Health Insurance Plan
Excerpt: "Massachusetts Gov. Mitt Romney (R) on Tuesday in a Boston Herald opinion piece detailed a proposal to make health insurance compulsory, the Herald reports. Romney said that the system would spread health care costs more evenly and argued that programs would be affordable to all. There are an estimated 532,000 Massachusetts residents who lack health insurance, or approximately 9% of the population." (Kaiser Family Foundation)

Plan Terms in Effect When Participant Filed Claim Determine Plan's Reimbursement Rights
Excerpt: "This case reminds us that a plan cannot remedy shortcomings in its provisions by requiring participants to sign agreements imposing obligations beyond what the plan document requires. It also serves as a reminder that, while welfare plan benefits are not subject to the type of statutory vesting requirements that apply to retirement plans, once a participant or beneficiary becomes entitled to welfare benefits ..., the benefits generally cannot be changed or reduced for that individual." (Employee Benefits Institute of America Inc.)

Wall Street Journal Examines New Vending Machines to Dispense Pres.cription Drugs
Excerpt: "The Wall Street Journal on Tuesday examined new 'ATM-like' vending machines that some drugstores and grocery stores in California and Virginia have installed or plan to install to dispense pres.cription drugs. After customers fill an initial pres.cription with a pharmacist, they can register to receive and pay for refills through the machines, regardless of whether the pharmacy is open." (Kaiser Family Foundation)

Wall Street Journal Looks at Online Patient Health History Services
Excerpt: "The Wall Street Journal on Tuesday examined four services that allow patients to electronically record their health histories. The goal of the services is to allow patients, providers and designated family members to easily access health information." (California HealthCare Foundation)

2005 Pres.cription Drug State Legislation -- Mid-Year Edition: Updated June 21, 2005
Excerpt: "In 2005, state legislatures have a stronger than ever health policy focus on pres.cription drugs. .... As of June, more than 600 separate bills and resolutions in all 50 states proposed to address a wide array of policies affecting access, affordability, payment and other regulation of pres.cription drugs." (National Conference of State Legislatures)

Galen Institute and The Heritage Foundation Briefing, 'Tax Reform as the Road to Health Reform'
Excerpt: "The Heritage Foundation and the Galen Institute co-hosted a briefing ... on Monday, June 20, 2005. Experts on both health and tax reform explained how the generous tax break for job-based health insurance artificially supports increased demand for more expensive health insurance and medical services, driving up costs and contributing to growth in the ranks of the uninsured. [Links to papers and the PowerPoint presentation are on the target page.]" (Galen Institute)

Get Ready to Invest Your Health Care Dollars Held in Health Savings Accounts
Excerpt: "Up until now, leftover money in these accounts sat in a low-interest bearing checking account. But that's about to change. Now that individuals have had a couple of years to accumulate dollars and meet account minimums, insurers and financial institutions are teaming up to allow them to invest their money in a pool of mutual funds. In other words, your incentive for not seeing the doctor is about to increase significantly." (Smart Money)

Certain Texas Workers Still HSA Eligible, According to IRS Information Letter
Excerpt: "The Internal Revenue Service has issued an information letter advising that employees in Texas can still contribute to a health savings account (HSA) if they have an 'injury benefit plan' instead of workers' compensation benefits." (PLANSPONSOR.com; one-time registration required)


Links to Items on Executive Comp, Benefits in General

Will New College Grads Have Health Insurance or a 401(k) Plan? (PDF)
1 page. Excerpt: "As tens of thousands of college seniors leave school and look for a job this summer, one question they will face is: If and when they land a job, what are the chances of having health benefits and a retirement plan?" (Employee Benefit Research Institute)

Hewitt Federal Legislation Quick Guide Updated as of June 21, 2005
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)

State Claims for Severance Pay and Other Benefits under Employment Contract Not Preempted by ERISA
Excerpt: "Some arrangements do not meet the Supreme Court's basic 'plan, fund or program' test--for instance, many courts have held that when an employer offers only a one-time, lump-sum severance payment, there is no ongoing administrative scheme and, therefore, no ERISA plan." (Employee Benefits Institute of America Inc.)


Newly Posted Events

Membership 2005-2006: Join Now for Discounts on Upcoming Educational Events and Seminars
in Arizona on June 22, 2005
presented by Western Pension & Benefits Conference - Phoenix Chapter


Newly Posted Press Releases

More Companies Froze, Terminated Pension Plans in 2004, Watson Wyatt Analysis Finds
(Watson Wyatt)

ERISA Advisory Council Sets July 2005 Meetings
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Will New Grads Have Health Insurance or a 401(k) Plan?
(Employee Benefit Research Institute (EBRI))

Gilsbar, Inc. Announces New CSMO to Help Manage Increasing Demand for Services
(Gilsbar, Inc.)

Chicago Businessman Ordered to Restore More Than $625,000 To Workers' Profit Sharing Plan
(U.S. Department of Labor, Employee Benefits Security Administration)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Account/Client Services Manager (Seattle)
for Zenith Administrators
in WA

Account/New Business Development Manager
for Zenith Administrators
in WA

FSA/Cobra Sales Rep
for Primark Benefits
in CA

Manager, Retirement Benefit Plans
for Catholic Health Initiatives
in KY

Client Service Manager
for PEN-CAL Administrators, Inc.
in CA

ERISA Attorney
for Tax Sheltered Compensation, Inc.
in MN

Senior Plan Administrator
for Capital Retirement Plan Services
in FL

Account Executive
for DailyAccess Corporation
in AL

Client Integration Consultant
for Diversified Investment Advisors
in NY

HM Benefits Service Manager
for Hewitt Associates
in NJ

Data Design Project Manager - HWE
for Hewitt Associates
in IL

Systems Analyst - HWE
for Hewitt Associates
in FL

Qualified Retirement Plan Administrator
for BKD, LLP
in CO

Retirement Plans Analyst
for U.S. Foodservice
in MD

Plan Documentation Associate
for GuideStone Financial Resources
in TX

Manager - Compliance (51904BR)
for American Express
in MN

401(k) Plan Administrator
for Pollard & Associates, Inc.
in MD

Assistant Plan Administrator
for Pollard & Associates, Inc.
in MD




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Editor and Publisher: David Rhett Baker, J.D.

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