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August 16, 2005
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Since 1992, BeneCom has provided one-stop benefit communications for organizations large and small, nationwide. Staffed by people who know benefits, we write, design and produce effective media, including SPDs, enrollment materials, newsletters, benefit statements and more. So whether you're an employer, plan administrator or consultant in need of traditional or online capabilities, we're here to help. Call (860) 674-2626 today.

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

Employer-Provided Retiree Health Coverage Deterioration at Companies National Crisis in the Making
Excerpt: "A major cause is the fact that companies are not legally required to set aside funds to match their retiree health care obligations. Nor are they barred from changing medical benefit coverage in midstream for retirees, since these benefits are not considered 'earned,' or vested, in the same way pensions are under the Employee Retirement Income Security Act (ERISA)." (The Washington Post; one-time registration required)

Survey: Shows Worker Educational Reimbursement Dips, Scholarships Up
Excerpt: "While the number of companies offering financial assistance to employees keen on improving their knowledge remains high, the number is dwindling, a survey shows." (MarketWatch via magicvalley.com)

2005 Pres.cription Drug State Legislation -- Mid-year Edition: Updated August 15, 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)

FTC Warns N.C. Legislators that PBM Law Could Hurt Consumers and Competition
Excerpt: "In a near-repeat performance of a March letter to North Dakota legislators, three bureaus of the Federal Trade Commission (FTC) on July 15 suggested in a letter that pharmacy benefit management regulatory legislation proposed in North Carolina could potentially 'limit a PBM's ability to reduce the cost of pres.cription drugs without providing consumers any additional protections.'" (DRUG BENEFIT NEWS via AISHealth.com)

Expect Fewer HIPAA Prosecutions in Light of Department of Justice Memo
Excerpt: "Criminal prosecutions for violations of the administrative simplification provision of HIPAA may be more limited now that the Department of Justice (DOJ) has said that only covered entities may be directly prosecuted for violating the criminal parts of the statute." (REPORT ON MEDICARE COMPLIANCE via AISHealth.com)

HIPAA Portability Deadline Approaching (PDF)
Excerpt: "While group health plans have focused on HIPAA's privacy requirements in recent years, HIPAA also has extensive provisions relating to portability of health care. Beginning January 1, 2006, calendar year group health plans must comply with the final portability regulations under the Health Insurance Portability and Accountability Act of 1996 ('HIPAA'). This Update summarizes the changes and clarifications made by the final regulations and provides a compliance checklist. It also ...." (Dorsey & Whitney LLP)

Medical Imaging Manufacturers Say Technology Pays Off in Better Health Care
Excerpt: "Medical imaging companies want to give regulators a clearer picture of their work. .... The companies point to several recent studies that suggest their technologies aren't major drivers of hospital cost increases." (The Boston Globe)

Prognosis for Health Insurance Costs: Painful
Excerpt: "Employers who don't dramatically change their health benefits are likely to face what has become a familiar litany: double-digit rate increases. Health insurance costs could climb at several times the cost of inflation again in 2006, .... Rates for the HMOs, which represent about 20 percent of health insurance in the United States, are expected to climb an average of 12.6 percent next year, according to a survey by consulting firm Hewitt Associates." (MySanAntonio.com)

Florida Firms' Health Insurance Benefits Snapshot Shows Creative Approaches to Cost Control
Excerpt: "Florida companies are rethinking employee healthcare plans due to rising medical premiums, a study conducted by Aon Consulting shows." (Tampa Bay Business Journal via bizjournals.com; one-time registration required)

Fact Sheet: CMS Marketing Rules for All Plans Offering Medicare Drug Coverage
Excerpt: "The Centers for Medicare & Medicaid Services (CMS) today issued guidelines on marketing for companies offering pres.cription drug plans to Medicare beneficiaries as part of Medicare's new pres.cription drug benefit beginning on January 1, 2006. The guidelines will set standards that companies must follow in marketing their plans to the nation's elderly and disabled." (U.S. Centers for Medicare & Medicaid Services)

Trends in Manufacturer Prices of Pres.cription Drugs Used by Older Americans
Excerpt: "These AARP Public Policy Institute reports present the results of studies of changes in manufacturers' pres.cription drug list prices (i.e., the prices set by drug manufacturers to charge wholesalers and other direct purchasers for drug products) for roughly 200 brand name and 75 generic pres.cription drugs most widely used by Americans age 50+. [Links to the current and past results are on the target page.]" (AARP)

Illinois Governor OKs Law Mandating Post-Traumatic Stress Coverage for Vets by Insurers
Excerpt: "Military veterans suffering from post-traumatic stress disorder received good news Sunday when Gov. Rod Blagojevich signed a bill that requires insurance companies in Illinois to cover treatment for the condition." (Chicago Tribune; one-time registration required)

Opinion Piece Examines Bill that Would Allow Purchase of Health Insurance Across State Lines
Excerpt: "A bill (HR 2355) that would allow U.S. residents to purchase health insurance in any state serves as a 'vivid example' of Republican efforts to provide U.S residents with more 'choice,' but 'what conservatives in this country never mention is that giving us these new choices also means taking something away -- typically, programs that make us more secure,' Jonathan Cohn, senior editor at the New Republic, writes in an opinion piece." (Kaiser Family Foundation)

Tough Act to Follow: Hill-Burton Reshaped Healthcare and Showed What Government Can Accomplish
Excerpt: "For those who believe government never accomplishes anything of value, consider the Hill-Burton Act. In fact, if you are a healthcare executive, ponder whether you would even have your job if not for Hill-Burton, which is nearing its 60th anniversary." (modernhealthcare.com)

EBRI Leader Still Skeptical About HSAs
Excerpt: "The Employee Benefit Research Institute has been raising doubts for years about the ability of health savings accounts to save the U.S. health finance system. .... Dallas Salisbury, president of EBRI, Washington, says he still believes that researchers need more data to determine if HSAs and 'consumer-driven health plans' can do much to hold down health care costs or help employees save for post-retirement health care costs." (National Underwriter Life & Health; free one-time registration or paid subscription required)

Opinion: Choice is the Choice in Health Care (PDF)
1 page. Excerpt: "[W]ritten by Dr. Merrill Matthews of the Council for Affordable Health Insurance, [this op-ed] points out the evidence that discredits the criticism of HSAs and discusses new legislative options." (Investor's Business Daily via Council for Affordable Health Insurance)

Accounts for Health Care Are Gaining
Excerpt: "A year and a half after the government made health savings accounts legal, HSAs are moving into the mainstream as more Americans seek affordable health care coverage." (The Sun News via Council for Affordable Health Insurance)


Links to Items on Executive Comp, Benefits in General

Board Approval Not Considered Equity Grant Date under FAS 123(R)
Excerpt: "At least one Big Four accounting firm has opined that companies cannot fix the equity grant date at which expensing would begin until the terms of the award have been communicated to employees. Most companies had previously believed the grant date to be when the Board approves specific grant levels to employees, which was also the date on which the grant price is established." (Watson Wyatt Worldwide)

Raising the Issue of Age Discrimination on the Job
Excerpt: "Given corporate America's ever-changing strategies, workers often are left with unexpected questions, even about something seemingly as simple as how they might collect an annual raise." (The Washington Post; one-time registration required)

Court Enforces Actively-at-Work Requirement Omitted from Highlights Brochure
Excerpt: "Employers that offer plan enrollment through brochures or other informal documents should make sure that the informal documents do not omit crucial details regarding eligibility and benefits. And although disclaimer language may help (as it did here), it does not replace complete and accurate disclosure; some courts have refused to enforce disclaimers against participants and beneficiaries." (Employee Benefits Institute of America Inc.)

Pre-IPO and Private Company Total Compensation Survey
Excerpt: "Survey Highlights: The only survey to report information on traditional stock plans, performance-based stock plans, restricted stock and other long-term incentive plans. The only survey to effectively combine employee ownership percentages with position-by-position pay practices. The only survey to report upon Board of Director compensation (cash and stock) for private companies, including Lead Director and Advisory Board members." (Syzygy Consulting Group via PLANSPONSOR.com: one-time registration required)


Newly Posted Press Releases

Effective Recruiting Tied to Stronger Financial Performance
(Watson Wyatt)

New Book on 412(i) Plans by Nick Paleveda MBA J.D. LL.M.
(412iCompany, The)


Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)

Dennis Cargile
(Bidwell Consulting Services, Inc.)

Dave Banathy, APA
(Bidwell Consulting Services, Inc.)


Newly Posted or Renewed Job Openings
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401(k)/Defined Contribution or Defined Benefit Account Manager
for National Retirement Services, Inc. (NRS)
in CA, NC

Actuarial Specialist
for Louis Kravitz & Associates
in CA

Pension Administrator
for R.J.L. Pension Services, Inc.
in FL

Pension Administrator
for Small Employee Benefit Firm in the Northwest Suburbs of Chicago, IL
in IL

Employee Benefits Account Manager (Service)
for The Protector Group Insurance Agency, Inc.
in CT, MA, RI

Installation Administrator
for Transamerica
in CA

Client Relationship Manager
for Great-West Retirement Services
in DC

Benefits Administrator
for Esterline Technologies
in WA




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