BenefitsLink Welfare Plans Newsletter July 22, 2005 Today's sponsor: The BenefitsLink Jobs Board (Click on company name or banner to learn more.) Where the best benefits employers find the best candidates Fill your employee benefits job openings fast by advertising on BenefitsLink. What better place to find qualified candidates? Your help wanted ad will be listed in the BenefitsLink Newsletter, will be seen by thousands of candidates who view our listings online, and will be emailed to over 3,000 job-seekers. Click here to see how easy it is to place an ad! Overview: CMS Information on Account Plans for Medicare Part D Purposes (PDF) 3 pages. Excerpt: "CMS has now provided guidance on whether employers may obtain the [pres.cription drug] subsidy (and whether they must provide notices of creditable coverage) for account-based plans-- i.e., health reimbursement arrangements (HRAs), flexible spending accounts (FSAs), and health savings accounts (HSAs)." (Buck Consultants LLC) Senate Committee Approves Combined Health Information Technology Bill Excerpt: " Lawmakers approved out of committee a health IT bill that combines the features of two similar pieces of legislation that had attracted wide bipartisan support. The bill aims to accelerate health IT adoption, improve the quality of care and reduce costs. The Senate Health, Education, Labor and Pensions Committee voted unanimously to send S 1418, the Wired for Health Care Quality Act, to the Senate floor." (Government Computer News) Texas Jury Finds Humana HMO Liable in Wrongful Death Lawsuit Excerpt: "A local jury in San Antonio, Texas, on July 1 awarded $7.4 million in actual damages in a wrongful death lawsuit against the health maintenance organization Humana Health Plan of Texas Inc., a physician, and his physicians group under contract to provide health care services, according to the Powell Law Firm, which represented the plaintiffs in the case." (Insurance Journal) Letter to Lawmakers on Proposal to Authorize Non-Actuarial Statements of Opinion for Health Reserves (PDF) 2 pages. Excerpt: "This letter presents the comments of the American Academy of Actuaries' Federal Health Committee regarding the Health Care Choice Act of 2005 (H.R. 2355). As introduced, this bill contains language that would allow a non-actuary to offer statements of opinion on reserves. For the reasons [in the letter], we recommend that only a member of the American Academy of Actuaries be permitted to provide such an opinion." (American Academy of Actuaries) Stress/Lack of Control Drive Workers to Retire Early: Valued Staff Need More Autonomy Excerpt: "Employers trying to keep older workers from taking early retirement should consider the often overlooked option of offering them greater autonomy on the job, says a new Statistics Can.ada study." (The Ottawa Citizen) New Jersey State Workers Peeved Over Pres.cription Lids Excerpt: "Hundreds of angry unionized government workers and retirees stood at the steps of the War Memorial building demanding state officials keep their hands off their pensions and health benefits. .... The state contends the benefits program needs to be pared down because some retirees are opting for name-brand medications instead of generic drugs. That means they reach the $552 dollar cap sooner and the state ends up paying more." (The Trentonian) Companies Hope to Cut Health Costs by Managing Diseases, According to Survey Excerpt: "Companies increasingly are setting up health programs designed for people with chronic diseases as a way to slow the rise in health care costs, according to a recent survey by Aon Consulting. More than 40% of the 207 companies surveyed had disease management and wellness programs in place, Aon said. An additional 20% were considering offering the programs." (Journal Sentinel) Senate Approves Bill that Would Create National Patient Safety Database Excerpt: "The Senate [yesterday] by voice vote approved a bill (S 544) that would establish a national patient safety database to encourage the reporting of medical errors, CQ Today reports (CQ Today, 7/21)." (Kaiser Family Foundation) Paying a Premium: The Added Cost of Care for the Uninsured -- Report Revised July 13, 2005 Excerpt: "This study quantifies, for the first time, the dollar impact on private health insurance premiums when doctors and hospitals provide health care to uninsured people. In 2005, premium costs for family health insurance coverage provided by private employers will include an extra $922 in premiums due to the cost of care for the uninsured; premiums for individual coverage will cost an extra $341." (Families USA) Medco Says Drug Review Policies Gain Popularity Excerpt: " Pres.cription drug reviews, which include prior authorization and step therapy policies, have increased 10-fold among its clients between 1998 and 2003 and resulted in more than $780 million in savings, says Medco Health Solutions." (BenefitNews Connect) Overview: Employer Actions in Response to Medicare Part D Excerpt: "The Medicare Part D pres.cription drug benefit program takes effect January 1, 2006, creating both opportunities and obligations for employers who provide pres.cription drug coverage to Medicare eligible employees and retirees. This alert provides basic guidance on how employers may respond to Medicare Part D." (Ballard Spahr Andrews & Ingersoll, LLP) Senate Commerce Committee OKs Reimporting Drugs Excerpt: "In what its sponsors called a significant victory, a provision allowing reimportation of lower-priced foreign drugs was endorsed Thursday by the Senate Commerce Committee, which voted 14-8 to add it to a bill reauthorizing the Federal Trade Commission." (The Times-Picayune; one-time registration may be required) CMS Retiree Drug Subsidy Center Serves as Resource for Employers The Centers for Medicare & Medicaid Services (CMS) has created an online Retiree Drug Subsidy Center to serve as a resource for employers sponsoring retiree pres.cription drug coverage that qualifies for federal subsidy payments." (U.S. Centers for Medicare & Medicaid Services) Corrected Link: Overview-- Employers Using New Strategies to Manage Pres.cription Drug Costs (PDF) (PDF) 3 pages. Excerpt: "Pres.cription drug costs have grown at double-digit rates over the past two decades, representing roughly 18% of the total medical spend for active employees and close to 40% for retirees. As most employers well know, time-worn containment strategies focused largely on tiered copays and unit price discounts do not go far enough in addressing the bulk of the cost increases created by greater utilization and an onslaught of new drug introductions." (Towers Perrin) Opinion: The Promise of Personalized Health Care: Why and How to Encourage Diversity and Choice Excerpt: "Medical professionals are developing the capacity to provision personalized care based upon genetic and personal characteristics, but while science and medicine are forging ahead, the health insurance market is lagging." (The Heritage Foundation) Association Health Plan Legislation 'A License to Steal,' Georgetown Study Warns Excerpt: "Congress is currently considering legislation to create federal association health plans (AHP) that would allow small businesses to purchase health insurance for their employees as a group. But a study by the Georgetown University Health Policy Institute warns the benefit to small businesses would be more than offset by the worsening problem of health insurance scams." (ConsumerAffairs.Com Inc.) Links to Items on Executive Comp, Benefits in General JCT Description of 'Tax Technical Corrections Act of 2005' (PDF) 17 pages; the bill was introduced on July 21, 2005, as H.R. 3376 in the House of Representatives and as S. 1447 in the Senate. Addresses expansion of bank S corporation eligible shareholders to include IRAs, uniform definition of a child, nonqualified deferred compensation plans. (Joint Committee on Taxation, U.S. Congress) Summary: Proposed Regulations on Use of Electronic Technologies for Notices, Elections and Consents (PDF) 2 pages. Excerpt: "The proposed regulations coordinate the existing written notice and election rules applicable to employee benefit plans with the requirements of the Electronic Signatures Global and National Commerce Act (E-SIGN)." (American Benefits Council) Analysts Leaving Out Cost of Stock Options in Investor Reports Excerpt: "AccountingWEB.com reports that, although companies are now required to include costs for stock options in their company earnings data, some Wall Street analysts are not including them in their earnings-per-share figures." (PLANSPONSOR.com; one-time registration required) Can.ada 4th Nation to OK G.ay Marriage Excerpt: "Can.ada legalized g.ay marriage yesterday, becoming the world's fourth nation to grant full legal rights to same-sex couples." (AP via The Seattle Times) Hewitt Federal Legislation Quick Guide Updated as of July 19, 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) NCCMP's 'Legislative Scorecard' Page Updated July 2005 Excerpt: "NCCMP has culled proposed legislation from the current Congressional session. The chart ... describes those bills and resolutions that we feel are of interest to our multiemployer pension and health plans. The chart also tracks bill status and gives our comments to the upcoming legislation." (National Coordinating Committee for Multiemployer Plans) Stock Option Taxation in People's Republic of China Clarified by New Guidance (PDF) Excerpt: "The People's Republic of China's (PRC) Ministry of Finance and State Administration of Taxation have jointly issued a new Circular, Caishui [2005] No.35 ('Circular 35') to provide more specific guidelines on the taxation of stock option income. Circular 35 came into effect on 1 July 2005." (KPMG Huazhen) Free Database of Support Resources for Active-Duty Employees Excerpt: "The EUSA Resource Center is a national clearinghouse designed to be a comprehensive resource for information about services from governmental and non-governmental organizations for Guard, Reserve and military personnel. The EUSA Resource Center provides a complete one-stop listing of a wide range of support programs." (Employers United for a Stronger America) Overview of the Record Retention Guidelines Pertaining to Form 5500 Excerpt: "ERISA sets forth specific reporting and disclosure obligations with respect to qualified retirement plans. A lesser-known fact is that ERISA also requires plan sponsors to retain for a fixed period of time the records that support the information included in the 5500 filing and other reports." (McKay Hochman Co.) Newly Posted Events Consumer Finance Litigation & Class Actions in New York on September 26, 2005 presented by American Conference Institute Managing Legal Risks in Conducting & Promoting Clinical Trials in California on September 19, 2005 presented by American Conference Institute Newly Posted Press Releases Travis Software Releases WebCOBRA.com's July '05 Release, with Enhanced Third Party Administrative Features (Travis Software Corp.) Identity Theft Benefit (Credit Guard Services) Newly Posted or Renewed Job Openings Pension Consultants/Administrators for Northern NJ Mid-Size Pension Consulting Firm in NJ 401k Account Executive for BISYS Retirement Services in PA Pension Administrator for Pension Benefit Consultants, Inc. in CT Paralegal - ERISA, 401(a) Plans (certification not required) for Jim Poekert & Associates, Inc. in FL Benefits Administration Support for Chesapeake Benefit Partners in DC, MD, VA Senior Advisor, Community Health Care for NRECA in VA 401(k) Plan Administrator for TPA Firm in Wayne, PA in NJ, PA 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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