BenefitsLink Welfare Plans Newsletter November 30, 2005 Today's sponsor: The BenefitsLink Jobs Board (Click on company name or banner to learn more.) Where the best benefits employers find the best candidates Fill your employee benefits job openings fast by advertising on BenefitsLink. What better place to find qualified candidates? Your help wanted ad will be listed in the BenefitsLink Newsletter, will be seen by thousands of candidates who view our listings online, and will be emailed to over 2,800 job-seekers. Click here to see how easy it is to place an ad! Certiorari Granted in the Case of Sereboff V. Mid Atlantic Medical Excerpt: "The US Supreme Court has again decided to shed some light on the issue of an ERISA plan's ability to obtain reimbursement from a participant who recovers a settlement from a third party. The Court announced November 28th that it will decide the issue in Sereboff v. Mid Atlantic Medical Services - a case from the Fourth Circuit Court of Appeals." (Attorney B. Janell Grenier via BenefitsBlog.com) CIGNA to Publish Medical Price Lists Online Beginning in January Excerpt: "Health insurer CIGNA Inc. ... said it was expanding its on-line pricing data for consumers to include services provided by hospitals, surgical and radiological facilities, and physicians." (Reuters via Business Insurance) Issue Brief: What Health Insurance Pools Can and Can't Do (PDF) 12 pages. Excerpt: "It is commonly assumed that purchasing pools have the power to provide economies of scale and negotiate favorable rates with health plans. Yet while pools have the potential to provide small-firm workers with access to coverage and favorable premium rates, creating a successful pool is a challenge. This issue brief examines how insurance pools work, the risks they face, and the conditions necessary for a pool to succeed." (California HealthCare Foundation) Maine Pharmacy Benefit Manager Disclosure Law Ruled Constitutional (PDF) 2 pages. Excerpt: "A Maine statute requiring pharmacy benefit managers to disclose conflicts of interest and certain financial information to health benefit providers has been ruled constitutional by the U.S. Court of Appeals for the First Circuit." (Powell Goldstein LLP) Aetna Explores E-Prescribing to Influence Prescribing Behavior, Despite Mixed Data Excerpt: "While electronic prescribing programs have been touted as a way to improve rates of formulary compliance and generic substitution, a new study shows that there was virtually no difference between the rates in an intervention group and a control group." (DRUG BENEFIT NEWS via AISHealth.com) Opinion: Blind Faith and Choice in the U.S. Health Care System Excerpt: "Comparing her first experience navigating the American health care system with a visit to the local Baskin-Robbins ice cream parlor -- famous home of the '31 flavors' -- a British health economist asks, 'Can we treat health care like ice cream? Does more choice raise collective society benefit or well-being?'" (The Commonwealth Fund) More U.S. Residents Will Need Government Help with Health Insurance as Employers Shift Cost Excerpt: "More U.S. residents 'will need government help' with health insurance, as employers shift more of the cost to employees and health care costs continue to increase, Washington Post columnist E.J. Dionne writes in an opinion piece. He cites the recent decision by automaker General Motors to lay off 30,000 employees." (Kaiser Family Foundation) PBS' 'NewsHour' Examines Uninsured Employees Excerpt: "PBS' 'NewsHour with Jim Lehrer' on [November 28] examined the status of uninsured U.S. residents, approximately 80% of whom work full- or part-time (Michels, 'NewsHour with Jim Lehrer,' PBS, 11/28)." (Kaiser Family Foundation) Issue Brief: Is Small Business the Key to Insuring More Californians? (PDF) 9 pages. Excerpt: "As policymakers and politicians grapple with reducing the number of uninsured Californians, attention often turns to the role of small businesses, which are far less likely to offer health coverage than large employers. This issue brief provides information about the insurance status of small business employees, the rate at which small firms offer benefits, and the expected effects of policies designed to increase coverage within this group." (California HealthCare Foundation) Opinion: Wal-Mart Offers Comparable Health Benefits Excerpt: "While 'Wal-Mart is often denounced for getting 'corporate welfare' because some of its employees rely on Medicaid for health care,' the company 'offers health benefits that are generally comparable to what other retailers offer,' New York Times columnist John Tierney writes." (Kaiser Family Foundation) Opinion: Age of Anxiety - Workers Can No Longer Count on Healthcare from Employers Excerpt: "American workers at big companies used to think they had made a deal. They would be loyal to their employers, and the companies in turn would be loyal to them, guaranteeing job security, health care and a dignified retirement." (The New York Times via California Nurses Association / National Nurses Organizing Committee) Opinion: The Crumbling Obstacle to Universal Health Care in the United States Excerpt: "The unique but irrational foundation of America's employer-based health insurance system is collapsing. And nothing illustrates this more than the increasing number of companies cutting or ending health benefits they promised employees and retirees." (Newsday) Can Working 24/7 Be Good for Companies, If It Burns Out for the Talent? Some Real-Life Alternatives Excerpt: "A revolt of top talent is brewing across corporate America, say dozens of top executives, consultants and researchers, suggesting that it's time to reenergize the stale 'work-life' debate -- by starting at the top." (Fortune via CNN Money) Links to Items on Executive Comp, Benefits in General May Non-Competes Still be Used in §457(f) Plans After §409A? Excerpt: "Under Regs §1.83-3(c)(1), a substantial risk of forfeiture exists 'where rights ... are conditioned directly or indirectly upon the future performance (or refraining from performance) of substantial services.' It is the inclusion of the parenthetical language - 'refraining from performance' - that has given substance to the use of non-competes." (Greensfelder, Hemker & Gale, P.C. via BNA Tax Management) Designing an Employee Benefit Plan Excerpt: "When you begin to put together an employee benefit plan, you will likely want to start with a few 'core' benefits, such as life insurance, health insurance and a retirement plan." (Naples Sun Times) The New Deferred Compensation Rules: What Employers Most Need to Know (PDF) 4 pages. Excerpt: "The Internal Revenue Service finally provided useful guidance for employers trying to comply with the new rules, in the form of proposed regulations under Section 409A of the Internal Revenue Code, on September 29, 2005. The proposed regulations are lengthy and complex. They provide extensive details for distinguishing what's covered by Section 409A from what's not, and determining how to comply with the new restrictions. This Viewpoint summarizes the key provisions." (Hay Group; one-time registration required) 2005 'To Do' List Under Code Section 409A Excerpt: "This article highlights some key 'to-do's' between now and the end of the year under Code Section 409A." (CCA Strategies) IRS Sent NQDC Plan Reporting Delay Request by Trade Group Excerpt: "A compensation trade group has asked federal officials to put off certain reporting requirements for nonqualified deferred compensation (NQDC) plans. The National Association of Tax Reporting and Payroll Management (NATRPM) made the request to Internal Revenue Service (IRS) to waive the 2005 Form W-2 and Form 1099-MISC reporting requirements of tax code Section 409A, ...." (PLANSPONSOR.com; one-time registration required) Hewitt Federal Legislation Quick Guide Updated as of November 22, 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) Overview: DOL Proposes Requirement to File Form 5500 Electronically Excerpt: "On August 30, 2005, the U.S. Department of Labor (DOL) published proposed regulations that would generally eliminate paper filings of Form 5500 (Annual Return/Report of Employee Benefit Plan), and instead require that filings be made electronically, including any statements or schedules required to be attached to the form." (Hewitt Associates) Newly Posted Events Certified Retirement Financial Advisor in Texas on February 8, 2006 presented by Getting Ready for 2006 in Ohio on December 13, 2005 presented by ASPPA Benefits Council of Cleveland Newly Posted Press Releases Holiday Savings Tips: Make a List. Keep It Short. Comparison Shop. (Employee Benefit Research Institute (EBRI)) Employease Again Ranked #1: Business Insurance Picks Employease as Top Employee Benefit Information System (Employease) Treasury And IRS Issue Guidance Clarifying New Legislation Providing Hurricane Katrina Victims Access To Their Retirement Savings (U.S. Treasury Department and Internal Revenue Service) Employers Now Have Flexibility of Adding Extensions to Great-West Healthcare FSAs (Great-West Life & Annuity Insurance Company) Workplace Options' Mary Ellen Gornick to Co-Chair 2006 EAPA Work/Life Task Force (Workplace Options) Operator Of Employers Mutual Convicted Of Fraud For Operating Bogus Health Insurance Provider (U.S. Department of Justice) Alliance for Affinity Security Launches; Will Administer Health Care Accounts for Major U.S. Employers (Alliance for Affinity Security) Newly Posted or Renewed Job Openings Director, International Compensation and Benefits for Sony Pictures Entertainment in CA Compliance Specialist for The Newport Group in NC Associate Product Manager for OppenheimerFunds, Inc in NY Institutional Relationship Manager for Fifth Third Bank in IN Benefits Analyst for Snap-on Incorporated in WI Regional Service Coordinator for Standard Insurance Company in CA Retirement Plan Document and Testing Specialist for Louis Kravitz & Associates, Inc. in CA Cost Conscious Benefits Director for Icahn Associates in ANY STATE Retirement Services Relationship Manager 2 for SunTrust Bank in DC Quality Control Reviewer-- Dental Claims Dept. for 1199SEIU National Benefit Fund in NY Account Coordinator, Employee Benefits for ABD Insurance and Financial Services in CA 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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