BenefitsLink Welfare Plans Newsletter November 15, 2005 Today's sponsor: Financial Research Associates, LLC. (Click on company name or banner to learn more.) Financial Research Associates LLC. Presents: Post-Implementation Medicare Part D Summit Enrollment, Implementation Challenges & the Competitive Landscape Hear directly from the industry's heavy-hitters! Plan executives and CMS speak out on implementation challenges and successes! Learn about the state of the industry in the opening keynote address from John Gorman, President, Gorman Health Group Hear Daniel Lyons from Independence Blue Cross address the national focus of Medicaid reform and its impact on Medicare And much much more (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Large Companies Broaden Voluntary Benefit Choices, but See Lackluster Participation Excerpt: "MetLife study also finds that less than a third of employees say their companies do an effective job of communicating benefit information." (Workforce Management; one-time registration required) Court Addresses Whether Special Benefit Rule for Married Employees Was Properly Disclosed in SPD Excerpt: "Although the court did not resolve the case, we found the plan interpretation issue worthy of note. Many large employers (and some small ones) employ members of the same family, creating special issues regarding how benefit coverages work for employees who are married couples, parents and children, etc. The operation of dependent life coverage is just one example; ...." (Employee Benefits Institute of America Inc.) Only 41% of Companies Plan to Award a Holiday Bonus to Employees This Year Excerpt: "In its press release, Hewitt said that, of the 41% who will offer a bonus, 44% will give a gift of food (e.g. turkey or ham), 37% will give retailer gift certificates, and 13% will give cash. The reasons these employers gave for continuing to award holiday bonuses were to say thanks or show appreciation (57%), maintain tradition (22%), and boost morale (18%)." (PLANSPONSOR.com: one-time registration required) With Only One Taker, Maryland State Health Plan Fizzling in First Year Excerpt: "Health insurers in Maryland have found that few businesses want to buy a new state-mandated insurance plan designed to cover low-wage workers." (Baltimore Business Journal via bizjournals.com; one-time registration required) Court Affirms Constitutionality of HIPAA's 'Routine Use' Exception to Disclosure of Medical Records (PDF) 2 pages. Excerpt: "On October 31, 2005, the Third Circuit Court of Appeals affirmed the decision of the U.S. District Court for the Eastern District of Pennsylvania granting summary judgment to the Secretary of Health and Human Services and holding that the 'routine use' exception to HIPAA's medical records privacy rules was not an unconstitutional infringement on patients' privacy rights." (Powell Goldstein LLP) Nebraska Planning First Statewide Health Information Exchange Excerpt: "An informal but broad-based coalition of health care providers, payers, consumers and boosters in Nebraska is planning for a health information exchange that could be the first to operate throughout an entire state. Leaders of the coalition, known as the Nebraska Health Information Initiative (NeHII), hope to issue their plans, including a business plan leading to self-sufficiency for the exchange, later this month." (Government Health IT) Two Insurers Make Health Care Prices Visible Excerpt: "Two Midwestern health insurers are laying detailed medical pricing information on the table for patients to inspect and compare, a practice that's relatively uncommon in the industry." (BenefitNews Connect) Wal-Mart Responds to USA TODAY Editorial and Opinion Piece on Company Health Benefits Excerpt: "An editorial debate about Wal-Mart's health benefits was a critical piece but offered no solutions to the health care challenges facing every American business ('Under fire, a giant employer offers a useful health plan,' Our view; 'Wal-Mart's plan a sham,' Opposing view, Medical insurance debate, Monday)." (USA TODAY) House Committee Approves NCPERS Health Care Bill Excerpt: "The House Ways and Means Committee approved the NCPERS health care bill as part of an overall pension reform bill on Wednesday, November 9. The health care bill, HR 2177, was incorporated into HR 2830 [Title X, Sec. 1003] as part of Chairman Thomas' bill." (National Conference on Public Employee Retirement Systems) Tax Advantages Make HSAs More Popular Excerpt: "University of Minnesota researchers have looked at various simulations of how several potential tax subsidies for Health Savings Accounts (HSAs) would affect consumer adoption." (PLANSPONSOR.com: one-time registration required) Links to Items on Executive Comp, Benefits in General Updated FASB Rules Would See Retiree Benefits and Obligations Spelled Out in Greater Detail Excerpt: "On Nov. 10, the Financial Accounting Standards Board (FASB) unanimously voted to add pension and other postretirement benefits (OPEB) to its agenda. We at Standard & Poor's believe this project will have a significant impact on equity valuations as well as income and balance sheets, and will turn into the major issue in financial accounting over the next five years." (BusinessWeek) Overview: FASB to Reconsider the Accounting for Pensions and Other Postretirement Benefits (PDF) 3 pages. Excerpt: "The Board unanimously decided to add a project to its agenda to reconsider the accounting for pensions and other postretirement benefits .... The project will be addressed in phases, with the first phase focused on cleaning up the balance sheet, and the second phase providing for a comprehensive reconsideration of the accounting for postretirement benefits." (Towers Perrin) Section 409A Regulations: Last in a Series from Deloitte Excerpt: "The IRS and Department of Treasury have issued the much-anticipated proposed regulations regarding the application of IRC section 409A to nonqualified deferred compensation plans. 70 Fed. Reg. 57930 (10/3/2005). The proposed regulations incorporate, change and expand upon the initial guidance the IRS provided under Notice 2005-1, 2005-2 I.R.B. 274." (Deloitte's Washington Bulletin via BenefitsLink.com) Employees Need Financial Education: Firms Can Turn to Programs that Supply Training to Workers Excerpt: "One of the perks of being a corporate executive is that the company often will pay for financial planning services to help you manage your money, stock options and other financial trappings that come with being a big boss. But the rank and file also sorely needs some help, given how the financial climate has changed." (Pamela Yip via The Dallas Morning News; one-time registration required) Overview: Tax Reform Advisory Panel's Final Report Excerpt: "The President's Advisory Panel on Federal Tax Reform on November 1, 2005 submitted its recommendations to Treasury Secretary John Snow. The final report recommends imposing a cap on the tax exemption for employer-provided health benefits and overhauling defined contribution plans and other tax-favored savings vehicles as part of a broader re-working of the federal tax code." (Deloitte's Washington Bulletin via BenefitsLink.com) Overview: New DOL Guidance on Reporting Costs of Marketing to Taft-Hartley Plans on Form LM-10 (PDF) 5 pages. Excerpt: "On November 10, 2005 the U.S. Department of Labor ... issued question and answer guidance ... on reporting payments made to unions and union officers by banks, investment advisers and other firms that do business with unions and pension plans jointly sponsored by unions. This guidance follows Q&A guidance issued in June that surprised many service provides to such plans." (Kirkpatrick & Lockhart Nicholson Graham) Newly Posted Events "Wrap It Up" 2005 Tax Compliance Year End Wrap Up and Strategies for 2006 in District of Columbia on December 6, 2005 presented by Swidler Berlin LLP Benefits Boot Camp in Ohio on December 1, 2005 presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter Newly Posted Press Releases Fringe Facts ® Communicator 7.0 Streamlines Benefit Statement Projects (Benefit Software Inc.) Polycomp Names New Pension Plan Administration Manager to Oversee Consultant and Support Teams in San Diego (Polycomp Administrative Services, Inc.) Newly Posted or Renewed Job Openings Technical Support Retirement Services Manager for RSM McGladrey Retirement Resources in NC Retirement Plan Supervisor for American Funds in IN 401(k) Plan Administrator for Tofias PC in MA Plan Administrator for The Paragon Alliance Group in PA Supervisor, Employee Benefits for Invesmart, Inc. in PA Employee Benefit Client Relationship Officer, Senior for Union Bank of California in CA 401k Administrator for GF Pension Corp. in PA 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. Published by: BenefitsLink.com, Inc. https://benefitslink.com/about.html 1298 Minnesota Avenue, Suite H Winter Park FL 32789 (407) 644-4146 Fax: (407) 644-2151 Editor and Publisher: David Rhett Baker, J.D. 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