BenefitsLink Welfare Plans Newsletter July 26, 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) U.S. Court Rules Railroad Must Cover Pres.cription Contraception Benefits for Employees Excerpt: "A federal judge has ruled that the nation's largest railroad cannot exclude pres.cription contraception benefits to female union employees, calling pregnancy a medical condition no less of a health threat to women than other ailments. The decision by Judge Laurie Smith Camp of the U.S. District Court in Omaha was hailed by advocates for women's health rights, who said the Union Pacific Corp. would be forced to cover contraception in all of its worker health plans." (Reuters via Business Insurance) Association Health Plan Bill's Aim Is to Help Small Business Employees Obtain Health Benefits (PDF) 2 pages. Excerpt: "Congress, with the backing of President Bush, is considering legislation intended to assist small employers in offering health insurance to their employees through pools referred to as association health plans (AHPs). The Small Business Health Fairness Act of 2005 (H.R. 525), introduced by Rep. Sam Johnson (R-TX), was reported out of the House passed the House on April 13, 2005. A companion measure (S. 406) was introduced in the Senate by Sen. Olympia Snowe (R-ME)." (HR Policy Association) Study: Association Health Plans: Loss of State Oversight Means Regulatory Vacuum and More Fraud Excerpt: "A new study ... concludes that exempting association health plans (AHPs) from state oversight 'would create a regulatory vacuum' that will allow scam operators to flourish, leaving businesses and consumers at serious risk for 'bankrup.tcy, delayed or foregone medical care, and loss of coverage.' [The target page has links to the full report and other documents relating to the study.]" (Georgetown University) Comments: 4th Circuit -- Employees Cannot Waive Rights under FMLA without DOL or Court Approval Excerpt: "The employment law blogosphere was all a flurry last week over this recent 4th Circuit case--Taylor v. Progress Energy, Inc., No. 04-1525 (4th Cir. July 20, 2005)." (Attorney B. Janell Grenier via Benefitsblog.com) Appetizing Benefit: Salary.com Lunchtime Incentive Is Made to Order Excerpt: "There's no such thing as a free lunch at Salary.com, but the economic research company will pay $4.50 toward the purchase of an entree from Brothers Pizza if an employee agrees to dine at its suburban Boston office." (Employee Benefit News) AccessWV Program Offers Alternative Health Insurance, Capped Rates Excerpt: "Gov. Joe Manchin III has announced a new program that offers health insurance coverage to West Virginians who have pre-existing, severe or chronic medical conditions as well as for those who have lost their insurance through the closing of their employers' business. AccessWV, formerly called the West Virginia Health Insurance Plan, was created in 2004 by the West Virginia Legislature and guarantees that all West Virginia residents who qualify can purchase health insurance ...." (Insurance Journal) Health Savings Accounts and HIPAA-- A Confusing Connection Excerpt: "There has been a great deal of interest in health savings accounts (HSAs), which were established under 2003's Medicare reform law. Some of the nation's leading administrators of HSAs are bracing for a flood of new accounts that will be opened on Jan. 1, 2006. The question is: are they covered by HIPAA requirements?" (REPORT ON PATIENT PRIVACY via AISHealth.com) To Get the Most Out of Disease Management, Utilize the Power of Disability Data Excerpt: "Is your disease management program reaching all of your at-risk employees? If you rely solely on group health information to fuel your efforts, it probably isn't. According to a recent survey from Watson Wyatt Worldwide, more employers are turning to disease management programs to help control rising employee medical costs. Roughly 95% of the 550 companies surveyed - up from 57% in 2003 - use disease management to identify and manage health problems in their employee populations." (Employee Benefit News) Survey Shows Execs See Transparency and Pay for Performance As Key to Reducing Health Care Costs Excerpt: "A recent PricewaterhouseCoopers survey shows that executives at large companies see quality and efficiency improvements as keys to controlling health care costs." (HR Policy Association) Will P4P, that Is Pay for Performance, Interest Translate into Progress for Health Care Cost Issue? Excerpt: "The primary benefit concern for employers continues to be health care costs. It's a worry exacerbated, some say, by the fact that the system is not only inefficient, but also qualitatively deficient. Companies and policy makers maintain hope that efforts to tie health care payments to provider performance will make things better. Indeed, a recent flurry of congressional hearings shows that federal lawmakers have picked up the pay for performance (P4P) issue and are running with it." (Employee Benefit News) Union Hires Team to Review General Motor's Health Cost Claims Excerpt: "The United Auto Workers has hired a team of financial advisers to review General Motors Corp.'s finances before the union's contract expires in 2007 to determine whether the automaker is justified in seeking concessions on health benefits." (Business Insurance) Transplant Insurance Offers Cure for Catastrophic Medical Exposures Excerpt: "According to the Organ Procurement and Transportation Network, 87,776 patients are awaiting transplants in the United States. Many are employees and colleagues at companies like yours. Statistically, virtually every employer with more than 5,000 employees will confront at least one transplant situation annually." (Employee Benefit News) Interview: Newt Gingrich Advises Employers on How to Combat Health Care Inflation Excerpt: "Health care inflation is one of the most pressing policy issues today, and theories on its cause and cure abound. IAssociate Editor Leah Carlson recently got 'policy doc' Newt Gingrich's take on cost drivers and remedies for the health care system's ailments." (Employee Benefit News) HSAs and Preventive Care -- Safe Harbor Preventive Care Screening Services Listed Excerpt: "HSAs are gaining momentum in the marketplace as a vehicle to get employees more engaged in decisions about their healthcare. [Chicago Consulting Actuaries discusses] how to qualify and what constitutes preventive care." (Chicago Consulting Actuaries, LLC) Employers Weigh Costs, Benefits of Traditional Vs. High-Deductible Health Plans Excerpt: "Quick: Whom do you admire most: Andy Griffith, who could solve any fix Opie got himself into, or Archie Bunker, who not so secretly wanted Meathead and Gloria to take more responsibility for their lives? Your response might help you figure out the answer to another question: Is a high-deductible insurance plan -- the so-called consumer-directed plans being heavily promoted this year -- right for your company?" (Kansas City Business Journal via bizjournals.com; one-time registration required) Audio: A Proposal for Interstate Health Insurance Excerpt: "House Republicans are proposing legislation that would allow people in one state to buy health insurance in another. The idea is to give consumers greater choice and more opportunities to save money on premiums. Opponents say that bargain hunters might end up with policies that don't provide adequate coverage." (Morning Edition via National Public Radio) Opinion: Cases for Taxing Your Health Benefits Excerpt: "For 60 years, American workers have received job-sponsored health-care benefits that are excluded from income and other payroll taxes, but now they're in danger of taxation. An odd coalition of groups from the right and the left wants to tax those benefits, and a special presidential commission is weighing whether to recommend ending their tax exemption when issuing its report Sept. 30 on how to overhaul the tax system." (Philadelphia Inquirer via CentreDaily.com) Interest in HSA-Based Plans Gains on HRAs, Mellon Study Finds Excerpt: "The number of lives covered by an HSA-based high-deductible health plan (HDHP) could soon eclipse enrollment in health reimbursement arrangement (HRA)-based plans, according to results of an employer survey conducted by Mellon Financial Corp.'s Human Resources & Investor Solutions division." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com) Links to Items on Executive Comp, Benefits in General Fed Credit Unions May Continue Treating Nonqualified Deferred Comp Plans as Eligible Sec 457 Plans Excerpt: "IRS has determined that, at least until Code Sec. 414(d) guidance ... is published, an already-existing plan that a federal credit union maintains as an eligible nonqualified deferred compensation plan under Code Sec. 457(b) (a 'section 457 plan') may be treated as an eligible section 457 plan. However, the federal credit union must have consistently claimed the status of a non-governmental tax-exempt organization for all employee benefit plan purposes." (Pension & Benefits Week via RIA News Briefings) Tech Companies Still Like Stock Options Excerpt: "In spite of the new stock option expensing rule of the Financial Accounting Standards Board (FASB), 89% of public technology companies say they will continue to offer stock options to employees." (PLANSPONSOR.com; one-time registration required) Federal Government Releases the 2005 Form 5500 Excerpt: "Plan sponsors can take a look at the latest version of the Form 5500 as released Monday [July 25, 2005]. Issuing the key pension reporting document were the US Department of Labor's Employee Benefits Security Administration (EBSA), the Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC). [The form is available at http://www.dol.gov/ebsa/5500main.html#2005.]" (PLANSPONSOR.com; one-time registration required) Newly Posted Press Releases ERIC Provides Easy-to-Understand Explanation of Funding Requirements for Single-Employer Pension Plans, and Funding Status of the PBGC (ERIC (ERISA Industry Committee)) Association Health Plans; Actuaries Still Raise Concerns as Congress Poised to Vote on Legislation (American Academy of Actuaries) U. S. Labor Department Extends Annual Reports Deadline After Hurricane Dennis Hits Alabama (U.S. Department of Labor, Employee Benefits Security Administration) U. S. Labor Department Extends Annual Reports Deadline After Hurricane Dennis Hits Florida (U.S. Department of Labor, Employee Benefits Security Administration) 3d Annual 412i Summit concludes in Bellingham Washington (412iCompany, The) Newly Posted or Renewed Job Openings Health Insurance & Group Insurance Sales Executive for Alliance Benefit Group of Kansas City, Inc. in IA, KS, MN, MO DB Implementation Analyst for Milliman in TX Conversion Implementation Specialist for BenefitStreet in CA Pension Administrator for PennRock Financial Advisors in PA Defined Contribution Plan Administrator for CBIZ Actuarial & Benefit Consultants in AZ Benefits Analyst II for OfficeMax in IL Product Manager, EAP & Absence Mgmt for Ceridian in FL 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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