BenefitsLink Welfare Plans Newsletter August 1, 2005 Today's sponsor: World Congress (Click on company name or banner to learn more.) The World Congress 1st Annual Human Capital Management Congress The World Congress is proud to present the 1st Annual Human Capital Management Congress taking place this October 31 - November 2, 2005 at the Omni Shoreham Hotel in Washington, DC. The HCMC will bring together the most innovative and knowledgeable industry experts addressing the most pertinent issues relating to health and human capital management. The event is uniquely designed to discuss the impact of benefits on employee productivity, healthcare costs and overall company competitiveness. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Bush Signs Medical Error Database Bill Into Law Excerpt: "President Bush has signed into law landmark legislation that would establish a national patient safety database intended to encourage voluntary reporting of medical errors." (Business Insurance) Parties File Briefs with District Court -- Again -- in AARP v. EEOC Excerpt: "The AARP won the first round in this case by convincing the district court that the EEOC's proposed exemption conflicted with the Third Circuit's interpretation of ADEA § 4(a). It is now up to Judge Brody to decide whether the Supreme Court's Brand X decision compels a different conclusion." (Deloitte's Washington Bulletin via BenefitsLink.com) Overview: New Grace Period Permitted for Cafeteria Plan Flexible Spending Accounts (PDF) 1 page. Excerpt: "The grace period extension is optional, and will require the adoption of a plan amendment by the end of the cafeteria plan year. Thus, to apply the grace period to calendar year FSAs for 2005, the amendment must be adopted by December 31, 2005." (Haynes and Boone, LLP) Getting the Most from Consumer Driven Health Care Plans -- Stacking the Savings Accounts Excerpt: "With the advent of consumer-driven health plans came new health-care spending accounts. In addition to the tried and true flexible spending account (FSA), came the health reimbursement account (HRA) and the health savings account (HSA). To maximize tax advantages for employees, and lessen employer costs, consumer-driven health-care plans can coordinate or 'stack' the three programs." (PLANSPONSOR.com; one-time registration required) Lack of Same-Sex Benefits Costly for State University Professors Excerpt: "As more colleges and universities nationwide extend health care benefits to same-sex partners, the faculty union that represents 5,500 professors at Pennsylvania's 14 state-owned universities is still waiting for them - even though a contract ratified more than a year ago opened the door to same-sex benefits." (AP via Times-Leader) NJ Supreme Court Clarifies Leave Rights of Pregnant Employees under Law Against Discrimination Excerpt: "In Gerety v. Atlantic City Hilton Casino Resort, 2005 N.J. LEXIS 931 (July 25, 2005), the Supreme Court of New Jersey held that pregnant employees are not entitled to preferential leave treatment under the New Jersey Law Against Discrimination (LAD)." (Littler Mendelson) Overview: Family and Medical Leave Act Claims May No Longer Be Waived by a General Release Excerpt: "Based on the recent decision in Taylor v. Progress Energy, No. 04-1525 (4th Cir. July 20, 2005), the common employer practice of including Family and Medical Leave Act (FMLA) claims in general releases is in jeopardy. Although it is unclear whether other U.S. Courts of Appeals or the U.S. Supreme Court will follow Taylor, employers in the Fourth Circuit must now seek prior approval by the U.S. Department of Labor (DOL) or a court for a release of FMLA claims to be valid." (Littler Mendelson) HealthSouth Settles Class-Action Lawsuits by Workers: Settlement to Offset Retirement Fund Losses Excerpt: "HealthSouth Corp. and its insurers agreed to pay $25 million to settle lawsuits by workers over losses in their company retirement fund, according to documents made public [July 29, 2005]." (Bloomberg News via The Philadelphia Inquirer; one-time registration required) Bill Gives Illinois Workers Time Off for Blood Donation Excerpt: "A new Illinois state law mandates that employers in the state give workers an hour of paid leave every 56 days so the person can donate blood." (PLANSPONSOR.com; one-time registration required) Expansion of Transit Benefits to More Federal Employees in D.C. Is Just Around the Corner Excerpt: "A provision in a six-year, $286 billion transportation bill, passed by the House and Senate just before the congressional summer vacation break, would codify an executive order issued in 2000 that requires federal agencies in the area to offer tax-free transit benefits to employees. The legislation would extend the fringe benefit to employees in the legislative and judicial branches." (The Washington Post; one-time registration required) California's Single-Payer Bill Passes Milestone Excerpt: "California's single-payer bill, SB 840, the California Health Insurance Reliability Act (CHIRA), introduced by state Sen. Sheila Kuehl (D-Santa Monica), passed key milestones during the current legislative session and is headed for the second phase of its consideration by the state Senate and Assembly early next year." (People's Weekly World Newspaper) Insurer Must Provide COBRA Coverage Because Insurance Contract Did Not Limit Election Period Excerpt: "The appeals court decision has repercussions for plan administrators and employers, as well as for insurers. It reminds us that COBRA provides for a minimum 60-day election period but does not set a maximum. Plan administrators, employers, and insurers will want to ensure that their governing plan documents specifically limit the COBRA election period to 60 days." (Employee Benefits Institute of America Inc.) Appealing a Denied Medical Claim Excerpt: "Here are some tips on how to successfully appeal a medical claim that is denied." (Bankrate.com via Yahoo! Finance) Overview: Senate Help Committee Approves Bipartisan Healthcare Information Technology Legislation (PDF) 1 page. Excerpt: "On July 10, the Senate Health, Education, Labor and Pensions ('HELP') Committee unanimously approved the Wired for Healthcare Quality Act of 2005 (S. 1418), legislation aimed at increasing the use of technology to store and share medical information. The measure, which contains language designed to ensure patient privacy, is a combination of two key pieces of health information technology ('HIT') legislation: ...." (Powell Goldstein LLP) National Organization to Build Framework for Health Care Claims Payer-Provider Cooperation Excerpt: "The Workgroup for Electronic Data Interchange is in the early stages of enabling providers and payers to cooperate on claims submissions, with the goal of reducing administration expenses. A subgroup of the organization is beginning work on a vision paper to define how an ideal system would work in facilitating electronic transactions between segments in healthcare that have long distrusted each other." (Healthcare IT News) HHS Clarifies Claims of Free Electronic Health Record System Software Offering Excerpt: "Officials in the Department of Health and Human Services (HHS) are clarifying claims made in a recent New York Times article that office-based physicians are in line to get free electronic health records systems. Although HHS is preparing to release a scaled-down version of a public-domain EHR system long in use at veterans hospitals and clinics nationwide, the software will not be totally free." (Health-IT World News) Appealing a Medical Claim Denial with a Self-Funded Health Insurance Plan Excerpt: "If the PWBA can't help you, your only other legal recourse is to sue your employer. That probably isn't the smartest career move to make. Another alternative is to get help from the state. While your state's health insurance regulatory body doesn't have any legal authority over your health plan, a patient advocate there may be able to advise and coach you on how to proceed." (Bankrate.com via Yahoo! Finance) Groups Lay Out Plan to Transform U.S. Mental Health Care System Excerpt: "The United States can start to transform its fragmented mental health care system requiring insurers to treat mental illnesses like any other disease, a group of 16 organizations proposed on Wednesday. The coalition of groups laid out a 28-point 'road map' for Congress and the administration." (Reuters) The Concierge Doctor Is Available at a Price Excerpt: "As the nation's health care debate focuses on the broader picture - rising costs and those without insurance - a small but growing number of doctors are shrinking their practices and asking patients to subsidize their decisions. The annual costs of these 'concierge practices' can range from around $1,500, ..., to $20,000 for some practices in places like Seattle and Key Biscayne, Fla." (The New York Times; one-time registration required) Policy Brief: Options and Alternatives to Fund Retiree Health Care Expenditures Excerpt: "This paper examines a number of mechanisms that employers and employees can use to pre-fund retiree health benefit expenses during work years. While there are obvious benefits to pre-funding retiree health benefits through existing tax-preferred vehicles while an individual is employed, existing options are in large part inadequate to solely fully fund retiree health benefits." (TIAA-CREF Institute) Helping Retirees 'Get It'-- The Critical Ingredient in Successfully Implementing Medicare Part D (PDF) 4 pages. Excerpt: "As companies refine their strategies for responding to the introduction of new Medicare pres.cription drug benefits (Medicare Part D) next year, communicating effectively with retirees will be critical. Whether your organization plans to continue offering its current coverage for Medicare-eligible retirees in 2006, modify coverage to take advantage of new options in the marketplace or scale back benefits, helping retirees understand -- and make the right decisions...." (Towers Perrin) IBM Employees Quit Smoking, Work Out to Tune of $25m Excerpt: "IBM is putting its money where its employees' health is. The computer giant spent $25 million last year, including about $1.3 million here in the Bay Area, on 'rebates' to employees who took tangible steps to pursue healthy lifestyle choices such as exercising regularly and not smoking." (San Francisco Business Times via bizjournals.com; one-time registration required) Firms Step Up Worker Wellness Efforts: Rising Health Costs Incentive to Promote Healthier Lifestyles Excerpt: "Three-quarters of the 150 top executives at large U.S. firms surveyed by PricewaterhouseCoopers this spring say they may raise worker payments for health care. But a growing number also want employees to take more responsibility for both costs and health choices. Eight of 10 in the survey said the best option for reducing costs is financial incentives to encourage healthier lifestyles." (USA TODAY) Overview: HHS Extends Sunset Date of Mental Health Parity Act Regulations to December 31, 2005 Excerpt: "The MHPA prohibits a group health plan from applying a lower annual or aggregate lifetime dollar limit to mental health benefits than it applies to medical/surgical benefits. The MHPA is found in substantially similar provisions of ERISA, the Code, and the PHSA; the MHPA provisions of ERISA and the Code have also been extended to December 31, 2005 by WFTRA." (Employee Benefits Institute of America Inc.) Health Legislation: A State-by-State Chart Showing Many of the Proposed Mandates on Employers (PDF) Excerpt: "[The] chart from the HR Policy Association, a Washington-based lobbying group, summarizes many of the health care bills introduced in state legislatures that would affect the business community." (HR Policy Association via Workforce Management; one-time registration required) Opinion: Health Care Choice Health Act Starting to Gain Attention It Deserves Excerpt: "For a time it seemed we were a voice in the wilderness regarding the potential value of the Health Care Choice Act drafted by Rep. John Shadegg, R-Ariz. For months, detractors have dismissed the legislation as a simple-minded response to a complex problem. Now that Shadegg's little free-market proposal is gaining steam in Congress, though, others are beginning to recognize the idea for what it is: Simply revolutionary." (The Arizona Republic) Another Question is Answered in the Eldercare: The Work/Life Issue Q&A Column My wife and I are the sole caregivers for her mother. She is 90 years old, nearly blind and unable to walk. She lives in an apartment near us, so we visit her each day. We are in our 70s ourselves. We get no cooperation from mom that would allow us to get assistance. We don't know where to start but she will not cooperate on any matter (including paper signing). (BenefitsLink.com) Links to Items on Executive Comp, Benefits in General Washington Regulatory Wrap Up, As of July 28, 2005 (PDF) 3 pages. The chart of federal regulatory proposals concerning employee benefits of interest to NCTR members has been updated to be current as of July 28, 2005. The federal updates referenced in the chart are available at http://www.nctr.org/federal/index.html. (National Council on Teacher Retirement) Learning to Make the Most of Your Military Benefits Will Pay Off Excerpt: "While base salaries for service members can be modest, there are other opportunities to achieve financial security in the military. Troops who maximize their benefits could be the envy of their private-sector counterparts." (Stars and Stripes) Newly Posted Events Springboard to Change 2005 Health Care Symposium in Pennsylvania on September 8, 2005 presented by Pittsburgh Business Group on Health Newly Posted Press Releases Pyramid Promotes O'Neill to President (Pyramid Digital Solutions) Senate Finance Committee Approves COLI in Pension Reform Legislation (American Council of Life Insurers) Great-West Healthcare Consumer Health Care Survey Reveals Mixed Bag of Results; Participants Average Prediction Price of a Honda Accord within $300 but Are off by $8,100 on a Four-Day Hospital Stay (Great-West Life & Annuity Insurance Company) Labor Department Solicits Nominations for 2006 ERISA Advisory Council (U.S. Department of Labor, Office of Public Affairs, Washington, D.C.) New NCQA Standards Promote Wellness, Prevention; 57 Health Plans Schedule Surveys (National Committee for Quality Assurance (NCQA)) Digital Documents, LLC Releases dDOptimaOCR (c) 3.5 Optical Character Recognition Software to Provide The Highest OCR Accuracy and Most Flexible Text Formatting Solution (Digital Documents, LLC--The Leader in Document Scanning and Imaging Services) Man Sentenced To 57 Months For Embezzling Over $1.3 Million From White Plains-Based Employee Benefit Plan (U.S. Attorney's Office) Newly Posted or Renewed Job Openings 401(k) Account Manager for BISYS Retirement Services in PA Pension Administration Manager - San Diego for Polycomp Administrative Services, Inc. in CA Health Insurance National Account Executive for Great-West Healthcare in Advanced Sales Professional for National Life Group in VT Defined Contribution Administrator for Howard Simon & Associates, Inc. in IL Health & Welfare Consultant for Towers Perrin in CA, CT, NJ, NY, PA Operations Manager for New York Life Investment Management LLC in MA Senior Benefits Manager - Up to $100,000 per year for Uline in IL Pension Administrator - Midtown, NYC for Retirement System Group Inc. in NY Account Manager-Executive Benefits Practice for Clark Consulting in TX International Research Consultant for Hewitt Associates in IL 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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