| BenefitsLink Welfare Plans Newsletter |   |
October 31, 2005
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Wal-Mart's Health Care Coverage Struggle Is Corporate America's, Too
Excerpt: "As the nation's largest employer, Wal-Mart cannot help but be entangled in the increasingly contentious debate over how best to provide health care to working Americans. Many of the company's 1.3 million employees are drawn from the most vulnerable part of the national labor pool: people who can find only low-paying jobs, who frequently cannot afford health coverage and who have no ability to absorb the kind of bank-breaking inflation in medical costs the country has experienced ...." (The New York Times; one-time registration required)
For the Thinking Employee, No-Brainer Health Care Is Passé
Excerpt: "It's a time-honored ritual of autumn in corporate America: you get your thick company benefits package. You are asked to choose from a 'cafeteria' of benefits. Has anything good ever come out of a cafeteria? You sigh. And you sign up for exactly what you had last year because it is all too daunting. That might have worked in years past, but more companies are demanding that employees take more control of their health care spending ...." (The New York Times; one-time registration required)
U.S. Employers Respond to Pres.cription Drug Price Hikes by Shifting More Cost to Plan Members
Excerpt: "That was a key conclusion of the most recent larger employer survey by Mercer Health & Benefits. Growth in spending on pres.cription drugs has been one of the forces driving up the cost of employer-sponsored health insurance, rising by double digits in 2004 even as overall health plan cost slowed to a 9% rise." (PLANSPONSOR.com: one-time registration required)
District Court Rules Former Employee Not Covered Under Plan Even Though Premium Was Paid
Excerpt: "The US District Court for the District of Massachusetts has ruled that [an] employee who died five days after she terminated her employment was not covered under an insurance plan even though the full plan premium was deducted from her check. Chief Judge William Young determined that CapGemini US LLC did not act arbitrarily and capriciously when it denied Edward Heller's claim for his wife's benefits, ...." (PLANSPONSOR.com: one-time registration required)
Vacations Benefit Both Worker and Boss
Excerpt: "Employers need to create backup systems for employees on vacation as well as encourage their managers to model healthy work and life balance. With both of these conditions in place, employees will truly have permission to renew their energy and motivation by taking an extended vacation, and companies will no longer develop employees who lose their edge and motivation, become ill or leave." (MaineToday.com)
DOL Informal Views on Disability and Second Qualifying Event Notices from Qualified Beneficiaries
This summary of a JCEB report covers two COBRA issues. (Employee Benefits Institute of America Inc.)
Opinion: Rethinking the Question 'Does Disease Management Work?'
Excerpt: "After reviewing 44 separate studies of the economic impact and ROI that DM programs targeting depression, diabetes and asthma, and other conditions had achieved, Cornell University and Thomson Medstat concluded in August 2005 that 'the jury is still out.' The study determined that too few rigorous scientific studies of financial impact had been conducted to make a sound business case for employers, insurers and governments to confidently invest in DM for its cost-savings potential." (HealthLeaders.com)
Opinion: The Danger of Consumer-Driven Health Care.
Excerpt: "The question of how to distribute the financial responsibility for America's health care bill dates back to the late '20s and early '30s. This was a time when widespread use of x-rays, development of sophisticated anesthetic techniques, and other medical advances meant that doctors and hospitals could cure rather than just comfort. But with these new abilities came new costs, and, for the first time, large numbers of people were struggling to pay their medical bills." (The New Republic Online; one-time registration required)
Opinion: An Insider's Look at Our Ailing Health-Care System and How to Rebuild Trust in It
Excerpt: "[E]rratic insurance rules create conflicting incentives in our health-care system. Except in emergency cases, physicians and hospitals must factor in insurance concerns as the care of patients is discussed. The lack of even a rudimentary health-information sharing system hinders accurate decision-making and quality control. When information about a patient's health history isn't shared as he bounces around the health-care system, clinical errors can be made." (Chicago Tribune via BlueCross BlueShield Association)
Cincinnati Area Companies Take Shot at Keeping Workers Well with On-Site Flu Vaccinations
Excerpt: "Some Greater Cincinnati businesses are offering on-site flu shots and preaching wellness in hopes of preventing the flu, and the absenteeism that comes with it, among their workers." (Cincinnati Business Courier via bizjournals.com; one-time registration required)
Opinion: Wal-Mart, HSAs and Other High-Deductible Health Plans Is a Win-Win-Win Opportunity
Excerpt: "The world's largest private employer and savviest purchaser concluded that high-deductible, low-premium health insurance offers the best deal for its workers. In some areas, Wal-Mart employees will be able to purchase health insurance for as low as $11 a month. Wal-Mart has taken heat because just 60% of its eligible employees participate in the company's health plan and another 5% are on Medicaid. But now the workers can buy affordable private insurance - real insurance - ...." (Galen Institute)
Links to Items on Executive Comp, Benefits in General
Revised Circular 230 Letter -- Requesting a Technical Advice Ruling on a Number of Issues (PDF)
5 pages. Excerpt: "Given the finalization of Circular 230 regulations on June 20, 2005, on behalf of the American Academy of Actuaries, which represents 3500 of the approximately 4000 enrolled actuaries, I would like to take this opportunity to request a technical advice ruling on a number of issues that have been raised regarding the application of Sections 10.33 and 10.35-10.37 to actuarial practice." (American Academy of Actuaries)
Penalties Awarded, But Not for Failure to Provide Documents 'Relevant' to Benefit Claim
This case addressed several important aspects of the rules under ERISA that allow participants to make written requests for certain plan information. (Employee Benefits Institute of America Inc.)
Same-Sex Partner Benefits Ok'd in Alaska by State's Supreme Court
Excerpt: "The Alaska Supreme Court yesterday ruled it is unconstitutional to bar benefits to the same-sex partners of public employees, a victory for homose.xual rights advocates in one of the first states to pass a constitutional ban on same-sex 'marriage.'" (The Washington Times)
Summary: IRS Settlement Initiative for Transactions Considered Abusive
Excerpt: "Internal Revenue Service officials ... announced a 'broad-based, limited-in-time' opportunity for taxpayers to come forward and settle certain transactions that the IRS considers abusive. .... Taxpayers who undertook one of the 'covered' deals will have until January 23, 2006 to submit their settlement papers to the IRS. The initiative, described in Announcement 2005-80, identifies 21 transactions eligible for the program. The ones which relate to benefits are ...." (Attorney B. Janell Grenier via BenefitsBlog.com)
IRS Releases the 2006 Inflation Adjusted Indexed Numbers for Tax Benefits.
Excerpt: "Included are the new Health Savings Account (HSA) limits for contributions, and deductibles and out-of-pocket numbers for H.S.A. High Deductible Health Plans (HDHP). The HSA maximum contribution for individuals increases to $2,700 from $2,650 in 2005, while the maximum contribution for families increases to $5,450 from $5,250. The catch up contribution for those aged 55 and over increases to $700 from $600 in 2005." (PLANSPONSOR.com: one-time registration required)
Hewitt Federal Legislation Quick Guide Updated as of October 25, 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)
Employee Benefits Outpacing Other Compensation, According to Latest DOL Report
Excerpt: "A rise in employee benefit costs outpaced overall compensation increases, including wage expenses, during the third quarter, according to a U.S. Labor Department report released Friday." (Business Insurance)
Newly Posted Events
409A Forum - International Issues
Nationwide on November 10, 2005
presented by Paul, Hastings, Janofsky & Walker LLP
409A Forum - Severance Issues
Nationwide on November 17, 2005
presented by Paul, Hastings, Janofsky & Walker LLP
409AForum -- Equity Compensation Issues
Nationwide on November 3, 2005
presented by Paul, Hastings, Janofsky & Walker LLP
Career Open House
in District of Columbia on November 11, 2005
presented by ICMA Retirement Corporation
ERISA Litigation Forum -- Recent ADEA Retiree Health Litigation
Nationwide on November 1, 2005
presented by Paul, Hastings, Janofsky & Walker LLP
ERISA Litigation Forum -- Vacation Pay Preemption Litigation
Nationwide on December 6, 2005
presented by Paul, Hastings, Janofsky & Walker LLP
Health Plan Eligibility Audits: Getting Rid of the Ineligibles--Pros, Cons, Whys, and Hows
Nationwide on October 20, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
WEB 2nd Annual Wellness Fair
in Massachusetts on November 17, 2005
presented by WEB Worldwide Employee Benefits Network MA Chapter
Newly Posted Press Releases
Indexed Amounts for Health Savings Accounts
(U.S. Treasury Department and Internal Revenue Service)
New Study Reveals Benefits Managers Expect "U.S. Bound Expatriate" Population to Rise; Aetna Global Benefits Provides Support for Foreign Individuals and Their Families Navigating U.S. Health Care System
(Aetna)
U. S. Labor Department Extends Annual Reports Deadline After Hurricane Wilma Hits Florida
(U.S. Department of Labor, Employee Benefits Security Administration)
New Online Total Compensation Solution
(Excient Inc.)
Brinker Capital Takes Retirement Plans To Attractive "Destinations"
(Brinker Capital Management)
Langevin Moves Health Care Agenda Forward
(Office of Congressman Jim Langevin)
Newly Posted or Renewed Job Openings
Retirement Plan Administration Specialist
for Consulting Actuaries Incorporated
in NJ
Pension Professionals
for The Rosen Group
in PA
Employee Benefits Division Chief
for San Bernardino County Human Resources Department
in CA
Senior Compensation Consultant
for Stanton Group
in MN, TX
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