BenefitsLink Welfare Plans Newsletter July 6, 2005 Today's sponsor: WorldatWork (Click on company name or banner to learn more.) New WorldatWork publications added to the Bookstore WorldatWork, a not-for-profit professional association, is a leading publisher of compensation, benefits and total rewards information. With a portfolio of books, reports, survey briefs, booklets and online learning programs, WorldatWork creates, markets and distributes publications that are critical to improved organizational performance. WorldatWork has contributed to the education and development of business professionals worldwide since 1955. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Overview: Federal Plan Adopts Use-It-or-Lose-It Grace Period Excerpt: "The federal government, like many private employers, has responded quickly to the opportunity provided in IRS Notice 2005-42. We find it interesting that the Federal Plan has adopted the new grace period for DCAPs as well as health FSAs. Due to troublesome tax and Form W-2 reporting issues that are raised by adopting a grace period for DCAPs, many employers are adopting a grace period only for health FSAs." (Employee Benefits Institute of America Inc.) California Paid Leave Program Draws 1% of Workers Excerpt: "About 1.1% of eligible employees took advantage of California's paid leave family insurance program in its first year, according to a state agency. Nearly 138,000 workers out of a total covered work force of close to 13 million employees, received about $300 million under the program, the nation's first, which is funded by the workers themselves under the State Disability Insurance program, according to the State Employment Development Department's projected estimates." (Business Insurance) Chart: Flexible Work Schedules in 2004 Excerpt: "In May 2004, over 27 million full-time wage and salary workers had flexible work schedules that allowed them to vary the time they began or ended work. These workers were 27.5 percent of all full-time wage and salary workers, down from 28.6 percent in May 2001." (U.S. Bureau of Labor Statistics) Massachusetts Governor Romney's Health Care Plan Says Everyone Should Pay Excerpt: "You have to buy car insurance if you own a car. You have to buy home insurance to get a mortgage. Why don't you have to buy health insurance? Massachusetts Gov. Mitt Romney re-ignited that debate last month when he announced a plan to expand health coverage to all the state's residents, with a caveat that those who don't buy coverage could face a penalty.'" (USA TODAY via Council for Affordable Health Insurance) Firm to Launch Medical Banking Network Excerpt: "The Medical Banking Project, a Franklin organization devoted to creating a platform for deploying medical banking services, plans soon to launch the proof-of-concept phase of its new COMBAT initiative. The phase, set to last nine to 12 months, will including setting up an open-source medical banking platform, enrolling companies and having them exchange data and money." (Nashville Business Journal via MSNBC) San Jose Mercury News and other Sources Look at Efforts to Digitize Patient Data Excerpt: "The San Jose Mercury News on Monday looked at how companies 'in Silicon Valley and elsewhere' are creating IT applications that allow patients to keep their medical data in one place and easily convey the information to providers." (California HealthCare Foundation) When FDA Says Yes, but Health Insurers Say No to Medical Devices Excerpt: "Medical device makers devote years and millions of dollars to winning regulatory approval for new products. But all that work does not necessarily produce the kind of data that persuades insurers to pay for the products once they hit the market." (The New York Times; one-time registration required) Testimony: David J. Brailer on the Office of National Coordinator for Health IT Activities Statement by David J. Brailer, M.D., Ph.D., National Coordinator for Health Information Technology of the U.S. Department of Health and Human Services on the Activities of the Office of the National Coordinator for Health Information Technology before the Committee on Commerce, Science, and Transportation Subcommittee on Technology, Innovation, andCompetitiveness of the United States Senate on Thursday, June 30, 2005. (U.S. Department of Health & Human Services) Older Adults Fret Over Health Security Study Shows: Most Back New Account, Early Medicare Enrollment Excerpt: "Older Americans, concerned that their income will fall short in retirement and that they won't be able to keep up with rising health-care costs, are embracing alternative financing ideas, according to a study." (MarketWatch) Overview: Egg Donor Fees and Legal Expenses May Be Deductible Medical Expenses Excerpt: "Although both this information letter and the previous private letter ruling addressed the deductibility of egg donor expenses, the discussion of which egg donor expenses might qualify as medical care may help a plan administrator determine whether such expenses are reimbursable under a health FSA or HRA (or help an individual determine whether an HSA may pay them on a tax-free basis)." (Employee Benefits Institute of America Inc.) Overview: CMS Provision of Draft Application for Employer Subsidy (PDF) 5 pages. Excerpt: "Under the Medicare Modernization Act, employers can apply for a 28% subsidy for allowable pres.cription drug costs for their qualified covered retirees and dependents. CMS has issued its proposed application for employers that want to apply for this subsidy. Generally, the application must be submitted by September 30, 2005, but the application confirms that a one-time 30-day extension may be requested." (Buck Consultants LLC) Walgreens Says Drug Costs Rose 7.2% in 2004, According to Survey of Employers Excerpt: "Employers reported a 7.2% increase in pres.cription drug expenditures last year, according to Walgreens Health Initiatives, the pharmacy benefit management subsidiary of pharmacy retailer Walgreen Co." (BenefitNews Connect) Associations' Health Insurance Policies under Scrutiny Excerpt: "Millions buy health insurance through trade and other groups. But alliances and claims of misrepresentation raise concerns." (Los Angeles Times; one-time registration required) Links to Items on Executive Comp, Benefits in General Welcome to BenefitsLink advertiser Brucker & Morra Excerpt: "Brucker & Morra practices exclusively employee benefits law - a crossover area involving ERISA and tax issues, as well as family law, mergers and acquisitions, government controversy and bankrup.tcy law, to name a few. The firm creatively designs retirement plans, solves or, given the opportunity, prevents employee benefits problems, and advises and consults with plan sponsors, fiduciaries, service providers and individuals about myriad employee benefits issues and concerns." (BenefitsLink.com) Newly Posted Events HSAs: Four Misconceptions That Can Undermine a Plan Nationwide on July 26, 2005 presented by Business 21 Publishing Newly Posted Press Releases Mercer Human Resource Consulting Introduces an Innovative Retirement Shares Pension Plan to Meet Evolving Needs; New Benefit Plan Combines Defined-Benefit Security with Defined-Contribution Features (Mercer Human Resource Consulting) Aetna Enables Employers to Waive Deductible for Preventive Drugs in High-Deductible Health Plans; Program Provides Added Coverage for HSA Consumers, While Encouraging Compliance with Preventive Drug Regimens and Potentially Reducing Overall Costs (Mercer Human Resource Consulting) Mortgage Benefits Corp. Launches The Realty PPO (Mortgage Benefits Corporation) Newly Posted or Renewed Job Openings AVP of Retirement Programs for UnumProvident Corporation in ME Consulting Actuary for The Heintzberger Company in OR Client Services Lead for Stanton Group in MN Assistant Analyst Recordkeeper for J. D. Benefits, Inc. in NC Employee Benefits Intermediary Sales Director for Wachovia in IL Client Service Representative for High Point Consulting & Staffing, LLC in CA Daily Plan Administrator for TPA Firm in the Southeast in NC Actuary for APA Plan Administration, Inc. in AZ 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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