| BenefitsLink Welfare Plans Newsletter |   |
September 20, 2005
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Overview: IRS Increases Mileage Rate for Transportation to Obtain Medical Care
Excerpt: "Transportation expenses that are deductible medical expenses under Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health FSA, HRA, HSA, or Archer MSA. It is important to keep in mind that the medical mileage reimbursement rate of $0.15 still applies for the first eight months of 2005 (January through August)." (Employee Benefits Institute of America Inc.)
Overview: Nonbank Trustees and Custodians for HSAs, Archer MSAs, and Other Tax-Exempt Trusts
Excerpt: "This list is fairly slow-growing. Most likely it is because of the extensive requirements that must be met before an entity may be approved to serve as a trustee or custodian (such as minimum net worth, bonding, and annual audit requirements)." (Employee Benefits Institute of America Inc.)
Employers Cope with COBRA Questions after Hurricane
Excerpt: "Just as many residents of the Gulf Coast are experiencing their greatest need ever for health insurance, mailbags and boxes containing COBRA health benefits continuation notices and elections were flooded or lost in the wake of Hurricane Katrina. Hurricane-related deaths, loss of jobs and reductions in hours also resulted in new COBRA 'qualifying events' for numerous workers. The qualifying events triggered employers' obligations to send them notices of their right to health care ...." (Society for Human Resource Management)
Feds Push Back Health Plan Coverage Deadlines for Katrina Victims
Excerpt: "Federal officials have announced extension to health plan coverage deadlines so that employees and employers affected by Hurricane Katrina will have the much-needed additional time. The relief provides additional time to comply with certain deadlines contained in the Consolidated Omnibus Budget Reconciliation Act ..., the Health Insurance Portability and Accountability Act ... and the rules for processing of health claims, according to the US Department of Labor's news announcement." (PLANSPONSOR.com: one-time registration required)
Overview: Employer Action Required to Comply with Final and Proposed HIPAA Regulations (PDF)
4 pages. Excerpt: "Employers will need to make changes to their health insurance plan materials and participant communications as of the start of their next plan year ..., in order to comply with final regulations under the Health Insurance Portability and Accountability Act of 1996 .... The regulations, issued by the Departments of Treasury, Labor, and Health and Human Services on December 30, 2004, pertain to rules about pre-existing condition exclusions, certificates of creditable ...." (Pillsbury Winthrop Shaw Pittman LLP)
Retiree Health Access Program Overview (PDF)
Excerpt: "Retiree Health Access is a unique health care offering for retirees developed by HR Policy Association using the combined employee populations of its member companies working together with a coalition of health care delivery vendors under the umbrella of the association'sRoundtable." (HR Policy Association)
National Health Access Program Overview (PDF)
2 pages. Excerpt: "The Affordable Health Care Solutions Coalition ... was created to improve coverage options for the growing number of uninsured Americans who work for or are affiliated with large companies, but are ineligible for employer-subsidized coverage. The result of the Coalition's work is National Health Access, a unique health insurance offering produced by the collective size of the association membership -- more than 260 member companies employing more than 16 million people." (HR Policy Association)
Coalition of Large Employers Seeks Disclosure of Pharmacy Benefit Managers' Drug Costs and Rebates
Excerpt: "Pressure is mounting on pharmacy benefit managers to reveal what they pay for drugs and to pass on the rebates that they receive to employers. Last month, the HR Policy Association's Pharma.ceutical Purchasing Coalition, a group of 52 large employers who collectively spent $3.7 billion on drugs in 2003, established a new transparent pricing platform. The coalition includes such employers as Caterpillar, Starbucks and IBM." (Workforce Management; one-time registration required)
Overview: Medicare Rx Employer Subsidy Not Taken into Account re: Section 401(h) Health Plan (PDF)
1 page. Excerpt: "The IRS recently issued Revenue Ruling 2005-60, which states that the Medicare pres.cription drug subsidy will not affect the applicable employer cost for purposes of determining whether an employer meets the cost maintenance requirements necessary for a qualified transfer of excess pension assets to a Section 401(h) retiree health benefits account under the plan." (Buck Consultants)
Deficit Foes Request Deferral of New Medicare Drug Benefit to Offset Katrina Cost
Excerpt: "Some House and Senate members want President Bush to postpone his Medicare pres.cription-drug program to help pay for Hurricane Katrina relief .... .... A bill to delay for a year the January 2006 start of the new drug entitlement would save $40 billion and will be 'front and center' tomorrow when members of the conservative Republican Study Committee present spending cuts to offset Katrina's costs, said Rep. Mike Pence, Indiana Republican and RSC chairman." (The Washington Times)
Medco Plans to Give HSA Users a Break on Preventive Drugs
Excerpt: "Medco Health Solutions, the largest pharmacy benefit manager, next year will offer a program that promotes the use of preventive medications by lowering the out-of-pocket costs of these drugs to consumers enrolled in high-deductible health plans coupled with health savings accounts." (BenefitNews Connect)
PBM-Owned Mail-Order Pharmacies Deliver Lower Pres.cription Drug Costs
Excerpt: "Pres.cription drug plan sponsors paid lower prices through pharmacy benefit manager (PBM) firms' mail-order pharmacies than through pharmacies that are not PBM-owned, according to a study recently released by the Federal Trade Commission. The FTC conducted its study of pres.cription drug costs that plan sponsors paid through PBMs in 2002 and 2003, as Congress required in the Medicare Pres.cription Drug, Improvement, and Modernization Act to determine conflict of interest among PBMs." (Spencer Benefits Reports)
Microsoft Tackles Weighty Issues: 800 Workers, 26,000 Lbs. Lost
Excerpt: "[N]early 800 Microsoft Corp. employees who have shed about 26,000 pounds through an exceptionally intensive weight-management program offered by the company. While Microsoft takes the benefit to unusually extended levels, health policy insiders say a trend is emerging among employers and insurers to offer comprehensive weight-management programs, even as both sides scramble to trim other benefits to slow the double-digit growth in health care costs." (Seattle Post-Intelligencer)
Trends and Issues: Individuals Are Picking Up Bigger Tab for Retiree Health Care (PDF)
10 pages. Excerpt: "This TIAA-CREF Institute /Trends and Issues/ report examines the growing challenge of funding retiree health care. The report points out that health care spending has tended to grow at twice the rate of overall economic growth during the past two decades, leading many of today's seniors to spend, on average, more than $9,200 per year on health-care costs." (TIAA-CREF Institute)
Practitioner's Forum Discussion on Medical Reimbursement Accounts in Profit-Sharing Plans
Excerpt: "The following is a transcript of an informal discussion of employee benefit practitioners held in Washington, D.C. on August 3, 2005. The topic focuses on the significance of Rev. Rul. 2005-55, 2005-33 I.R.B. 284, which was issued by the IRS on July 28, 2005, and held that certain medical reimbursement accounts in profit-sharing plans do not satisfy the qualified plan vesting requirements." (BNA's Tax Management Inc.)
Links to Items on Executive Comp, Benefits in General
Letter to FASB re: Definition of 'Grant Date' under FAS 123R (PDF)
2 pages. Excerpt: "On behalf of the HR Policy Association, I am writing to urge the Financial Accounting Standards Board ('FASB) to reverse the FASB staff's recently articulated view on the definition of 'grant date' under Statement of Financial Accounting Standards No. 123 (as revised, 2004) ('FAS 123R'). We believe that the staff's interpretation would create significant unintended consequences that significantly outweigh any accounting benefits that are produced." (HR Policy Association)
CRS Report: Older Workers: Employment and Retirement Trends, Updated September 14, 2005 (PDF)
19 pages. Excerpt: "This report begins by describing the change in the age distribution of the U.S. population that will occur between 2005 and 2025 and summarizing the historical data on the labor force participation of older workers. This discussion is followed by an analysis of data from the Census Bureau's Current Population Survey on employment and receipt of pension income among persons age 55 and older. Employment trends among older workers are then discussed in the context of data ...." (Congressional Research Service via The ERISA Industry Committee)
Benefits Explanation Can Hit More than Language Barriers
Excerpt: "Few realize that many Spanish-speaking employees have strong negative and erroneous beliefs about the U.S. financial system. In order to change their thinking and persuade them that retirement plans are, in fact, in their best interest, these beliefs must be addressed and clarified." (Denver Business Journal via bizjournals.com; one-time registration required)
Overview: Congress Passes Katrina Tax Relief Bills (PDF)
2 pages. Excerpt: "Both Houses of Congress approved emergency tax relief for individuals affected by Katrina by voice vote on September 15, 2005.Both bills contain a series of employee benefit provisions designed to ease access to assets held in tax-qualified employee benefit plans for employees affected by Katrina on a temporary basis." (Dow, Lohnes & Albertson, PLLC)
RIA Special Study -- Tax Relief for Victims of Hurricane Katrina (PDF)
4 pages. Excerpt: "This RIA Special Study summarizes the relief available to Hurricane Katrina victims, and where applicable, includes cross-references to more detailed coverage. It is updated to reflect the latest developments." (Federal Taxes Weekly Alert Newsletter)
Hewitt Federal Legislation Quick Guide Updated as of September 13, 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)
Katrina And Employee Benefits: How Plans, Governments, Insurers Are Responding
Excerpt: "In the aftermath of Hurricane Katrina, scores of issues have arisen surrounding how to provide employee benefits to those employees affected by the storm. Here is a recap of how some employer-provided plans, insurance carriers, and the government are dealing with employer-provided benefits affected by Katrina." (Spencer Benefits Reports)
Assistant Secretary Ann L. Combs' Statement on Additional DOL Guidance on Hurricane Katrina Issues (PDF)
Excerpt: "[The EBSA] has received inquiries concerning the application of rules governing participant contributions and loan repayments and the furnishing of blackout notices to employers and plans in areas affected by the Hurricane." (U.S. Department of Labor)
Newly Posted Events
401(k) Plans
in Washington on September 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Oregon on October 11, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Ohio on October 18, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Minnesota on October 25, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
AFP Annual Conference
in Texas on October 9, 2005
presented by Association for Financial Professionals
Cafeteria Plans
in Washington on September 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Oregon on October 12, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Ohio on October 19, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Minnesota on October 26, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Washington on September 30, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Oregon on October 14, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Ohio on October 21, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Minnesota on October 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Washington on September 29, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Oregon on October 13, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Ohio on October 20, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Minnesota on October 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Washington on September 30, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Oregon on October 14, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Ohio on October 21, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Minnesota on October 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Washington on September 29, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Oregon on October 13, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Ohio on October 20, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Minnesota on October 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
U.S. Labor Department Extends Annual Reports Deadline After Hurricane Katrina Hits Florida
(U.S. Department of Labor, Employee Benefits Security Administration)
U.S. Labor Department Extends Time and Areas Covered by Reporting Relief for Areas Hit by Hurricane Katrina
(U.S. Department of Labor, Employee Benefits Security Administration)
Culpepper Launches Compensation Survey for Life Sciences
(Culpepper and Associates, Inc.)
Shifts in Older Americans' Total Wealth, 1992-2002
(Employee Benefit Research Institute (EBRI))
Survey Shows Some Employers May Be Missing Cost-Saving Opportunity Available Through Medicare Part D
(Towers Perrin)
IE-Engine Changes Its Name to HighRoads; Poised to Improve How Companies Buy and Manage Employee Benefits with Proven Model for Lowering Costs and Sustaining Quality
(HighRoads, Inc.)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Jim Schaefer
(Uniprise Strategic Solutions)
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
Compliance/Conversion Specialist
for Employee Benefits Firm
in MD
Compliance Consultant
for American United Life Insurance Company
in IN
Client Services Consultant- St. Louis Regional Office
for American United Life Insurance
in MO
Actuarial Analyst IV
for Stanley, Hunt, DuPree and Rhine a subsidiary of BB&T Corporation
in NC
Senior Employee Benefits Daily Administrator
for Stanley, Hunt, DuPree, and Rhine, a subsidiary of BB&T Corporation
in NC
Director, Institutional Relationship Management
for BISYS Retirement Services
in PA
Sr. Employee Benefits Attorney
for CitiStreet
in NJ
Benefits Assistant II
for University of California - Los Angeles
in CA
Employee Benefits
for Primary Consulting, Inc.
in ANY STATE
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