BenefitsLink Welfare Plans Newsletter November 2, 2005 Today's sponsor: ALM (Click on company name or banner to learn more.) Complete Benefits Law Guidance from Law Journal Press The nation's workforce and health care system are constantly evolving and so are the legal issues. Law Journal Press helps you handle any benefits law question with up-to-date, authoritative books on all aspects of the field. Get legal and practical advice from leading experts on everything from COBRA to ERISA, "contingent" employees to family and medical leave, and more. Browse our product listings for detailed information and special offers. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Suffolk County, N.Y., Law Requires Large, Nonunion Companies to Contribute to Employee Health Ins. Excerpt: "Suffolk County, N.Y., Executive Steve Levy on Friday signed into law a bill that requires large, nonunionized grocery retailers in the county to contribute to their employees' health insurance, Long Island Newsday reports (Lam, Long Island Newsday, 10/29). The legislation, approved by county lawmakers last month, requires large retail stores to set aside a minimum of $3 for every hour an employee works to cover health insurance costs." (Kaiser Family Foundation) Massachusetts House Speaker DiMasi to Revise Health Plan After Business Outcry Excerpt: "Faced with an uproar from businesses, House Speaker Salvatore F. DiMasi said late yesterday that he would revise his healthcare plan so that companies that insure their workers would not be subject to a new payroll tax." (The Boston Globe) Summary: Improving the Quality of Health Care for Mental and Substance-Use Conditions Excerpt: "This report, Improving the Quality of Health Care for Mental and Substance-Use Conditions: Quality Chasm Series, ..., finds that the Quality Chasm framework is applicable to health care for mental and substance-use conditions, and describes a multifaceted and comprehensive strategy to do so." (National Academy of Sciences) Commission Recommends Patient ID Standard Excerpt: "The Commission on Systemic Interoperability, a federal advisory body, recommends in its final report that the government 'develop a national standard for determining patient authentication and identity.'The 250-page report, released [October 25], also calls for a uniform federal health information privacy standard that would overrule state laws that limit or prevent information sharing among authorized individuals and institutions." (GovernmentHealthIT) Pay For Performance: Rewarding Improvements in the Quality of Health Care (PDF) 8 pages. Excerpt: "With health care quality once again front and center, the Academy Health Care Quality Work Group is providing background and analyses, from an actuarial perspective, on issues related to health care quality and the related P4P approach to provider reimbursement.This issue brief explores current definitions and measures of health care quality and it examines the P4P approach to rewarding improvements in health care quality, particularly within the Medicare program." (American Academy of Actuaries) Aetna to Pay for Program to Manage Depression Excerpt: "A widely tested approach to diagnosing and treating depression, one of the nation's most prevalent and costliest afflictions, is moving into the mainstream of insurance coverage. Prompted in part by employers who cite depression as a frequent cause of absenteeism and low productivity, the big insurer Aetna plans to announce today that it will begin paying for a depression management program in dozens of medical offices around the country." (The New York Times; one-time registration required) Overview: Proposed Rules for E-Prescribing and Electronic Health Records (PDF) 4 pages. Excerpt: "On Tuesday, October 11, the Health and Human Services ('HHS') Office of Inspector General ('OIG') and the Administrator of the Centers for Medicare and Medicaid Services ('CMS') separately published much-anticipated proposed rules that would allow hospitals, group practices, pres.cription drug plan ('PDP') sponsors and Medicare Advantage ('MA') organizations to provide physicians with technology for electronic prescribing and for interoperable electronic health records ...." (Powell Goldstein LLP) AARP Report Shows Drug Prices Zoom Past Inflation Excerpt: "Brand-name drug wholesale prices rose at twice the rate of inflation in the past year, the AARP says in a report released today.Wholesale prices for the 200 brand-name drugs most commonly used by Americans over age 50 rose an average 6.1% in the 12 months ended in June, says the study, a smaller increase than the 7.1% increase the AARP report showed for the 12 months ended in December 2004." (USA TODAY) Lawmakers Want to Postpone Medicare Part D Excerpt: "Just days before retirees are scheduled to start choosing their Medicare pres.cription drug plans ..., six Republican senators have proposed delaying the benefit in an effort to offset the cost of relief efforts in the aftermath of Hurricanes Katrina and Rita." (BenefitNews Connect) Employers Weigh in with Wellness Programs Excerpt: "As corporate America's waistbands grow, employers are stepping up to the plate in an effort to curb absenteeism and add to their employees' overall well-being. Companies are adding in-house fitness centers and discounted health club memberships as they trade in traditional vending machine fare for low-calorie snacks and a more health-conscious menu at the company cafeteria." (Tampa Bay Business Journal via bizjournals.com; one-time registration required) Limited Take-Up of Health Coverage Tax Credits and Design of Future Tax Credits for the Uninsured (PDF) 58 pages. Excerpt: "The Trade Act of 2002 created federal tax credits to subsidize health coverage for certain early retirees and workers displaced by international trade. Though small, this program offers the opportunity to learn how to design future tax credits for larger groups of uninsured." (Economic and Social Research Institute) Towers Perrin U.S. Legislative Tracking Charts - Health and Welfare (Updated October 31, 2005) (PDF) 28 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin) Opinion: These Days, Health Care Is Being Greeted with Concern Excerpt: "What is all too often misunderstood, or ignored, is the fact that company-provided health care is still a relatively recent phenomenon in the American workplace. Such valuable benefits emerged from the efforts of organized labor primarily in the automotive industry during the 1930s, and as a way to compensate workers during the wage freezes of World War II. Today, health care is often the make-or-break issue in the labor economy." (The Kansas City Star; one-time registration required) Overview: Proposed Regulations on Employer-Comparable Contributions to HSAs Excerpt: "The IRS has proposed the first regulations on health savings accounts (HSAs), which generally follow the comparability guidance issued in previous notices. Employers are not required to contribute to their employees' HSAs, but if they do, contributions must be equitable for all comparable participating employees." (Watson Wyatt Worldwide) Links to Items on Executive Comp, Benefits in General Tax Reform Panel Report Shows Higher Tax Rates for Most Taxpayers and Breaks for Some Excerpt: "The commission issued two proposals. The first would simplify the income tax; the second would go further toward encouraging savings and investment. Tax experts said that both proposals faced a lot of resistance but that only the first proposal had any chance of enactment." (The New York Times; one-time registration required) Presidential Commission Recommends Overhaul of Federal Income Tax System Excerpt: "A presidential commission recommended changes in the federal income tax system that would lower rates, reduce paperwork and eliminate or scale back most tax breaks, including popular deductions for home mortgage interest and employer-provided health insurance." (The Washington Post; one-time registration required) Report of the President's Advisory Panel on Federal Tax Reform, November 2005 The 359 page final report is presented in four sections of PDF content. (President's Advisory Panel on Federal Tax Reform) Branding Makes Benefits Communication More Personal for Employees Excerpt: "Elizabeth Borton, president of Write on Target, offers ... tips to those who want to apply marketing techniques to benefits communications: ...." (Employee Benefit News) Changing Demographics of the Retired Population (PDF) 2 pages. Excerpt: "The changing demographics of the retiring population have consequences for Social Security financing and retirement policies. The shifting marital status and racial composition of the population will increase the numbers of retirees in groups (divorced women and minorities) who have been at higher risk of poverty." (Urban Institute) Overview: Proposed Regulations on Deferred Compensation from Treasury Excerpt: "The U.S. Department of the Treasury and the IRS recently issued proposed regulations under section 409A, which governs plans and arrangements that provide non-qualified deferred compensation (NQDC). In January 2005, the Treasury and IRS issued Notice 2005-1, which provided some guidance on implementing section 409A .... These proposed regulations, ..., make some changes to Notice 2005-1 and fill in some gaps." (Watson Wyatt Worldwide) Overview: IRS Proposed Regulations for Nonqualified Deferred Compensation Plans (PDF) 2 pages. Excerpt: "Some of the transition period relief that was available for 2005 is not available for 2006. As a result: Participants must make deferral elections on regular compensation to be received in 2006 by December 31, 2005. Participants who want to lower or cancel deferral elections or terminate their plan participation for 2006 must do so by December 31, 2005. Plan sponsors that want to terminate plans for reasons not allowed under the proposed rules must do so by the end of 2005." (Prudential Retirement) Overview: Guidance on Deferred Compensation Rules under Code Section 409A (PDF) 5 pages. Excerpt: "The Treasury Department and the IRS recently issued long-awaited proposed regulations regarding the application of Section 409A of the Internal Revenue Code (the 'Code') to nonqualified deferred compensation plans or arrangements. This Client Alert focuses on the items that must be completed in 2005 to comply with Section 409A and addresses the transitional rules and revised deadlines provided for under the proposed regulations." (Powell Goldstein LLP) Towers Perrin U.S. Legislative Tracking Charts - Human Resources (Updated October 31, 2005) (PDF) 8 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin) Smelling a Rat: How to Catch Shady Moves in Employee Benefit Plans Excerpt: "To get the low-down on detecting malfeasance in benefit plans, EBN associate editor Leah Carlson conferred with U.S. Assistant Secretary of Labor Ann Combs, who heads the Employee Benefits Security Administration, which enforces employment-related laws like ERISA." (Employee Benefit News) The Benefits of a Formal Repatriation Program for the Organization and the Expatriate Excerpt: "While approaching this process six months in advance is ideal, it is more often at three months that the wheels are set in motion; any time frame less than three months can lead to a hectic, stressful transition. For these reasons and more, including the fact that many organizations do not have the staff to support these concurrent activities, a relocation provider can be a cost-effective resource for ensuring that each step happens as needed." (Employee Benefit News) Overview: IRS Announces Limited-Time Settlement Initiative for Certain 'Abusive' Transactions (PDF) 1 page. Excerpt: "Eligible participants in the initiative will have the opportunity to settle with the IRS at a reduced penalty rate. In order to participate in the settlement initiative, taxpayers must file an Election Form with the IRS by January 23, 2006." (Morgan, Lewis & Bockius LLP) Chart: 2006 Benefit Limits Excerpt: "The IRS has announced the annual cost-of-living and statutory adjustments of various dollar limits for employee benefit plans." (Watson Wyatt Worldwide) Newly Posted Events Come Play Jeopardy . . . Benefits Jeopardy, that is! in Georgia on November 17, 2005 presented by Worldwide Employee Benefits Network (WEB) - Atlanta Chapter Defined Contribution Plan Expenses Nationwide on November 17, 2005 presented by ERISA Fiduciary Guild & IBF Conferences*International Business Forum The Latest Guidance on HSAs and HRAs Teleweb Nationwide on November 3, 2005 presented by International Foundation of Employee Benefit Plans Newly Posted Press Releases Tax Reform Proposals Threaten Workers' Retirement Security-- "Don't Take Away America's 401(k)" (ASPPA (American Society of Pension Professionals & Actuaries)) Council To Measure Bush Tax Reform Panel Proposals By Effect On Health Coverage And Savings Rates (American Benefits Council) 401kLoans, LLC Hires Industry Veteran As New CEO, Adds CIO (Metrics Partners) PensionOnline Announces 401k Rewards (Metrics Partners) SHPS Breaks Ground with New, No-Fee Debit Card for Health Spending Accounts (SHPS) Newly Posted or Renewed Job Openings Compliance Testing Manager for Diversified Investment Advisors in NY Retirement Plan Specialist Wanted! for SS&G Financial Services in OH Consulting Actuary (Pension) for United Actuarial Services, Inc. in IN Consulting Actuary (Health Care) for United Actuarial Services, Inc. in IN Implementation/Data Management for Precept in CA Plan Specialist for Transamerica in CA Defined Contribution Administrator - Phoenix for RSM McGladrey Inc. in AZ Benefits Assistant for Raley's in CA Plan Technical Support Representative for Great-West in CO Junior Pension Administrator for Huron Pension Services, LLC in CA Employee Benefits Tax Senior or Manager for Deloitte in CA Enrolled Actuary Manager for RSM McGladrey Inc. in AZ 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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