February 22, 2007 Sponsored by: www.ftwilliam.com (Click on company name or banner to learn more.)
Text of Announcement 2007-24: Reporting Requirements by Trustees of Archer MSAs (PDF) Announcement 2007-24 notifies trustees and custodians of Archer Medical Savings Accounts (MSAs) that they must report to the Internal Revenue Service the number of Archer MSAs established (1) between January 1, 2005 and June 30, 2005 and (2) between January 1, 2006 and June 30, 2006. Trustees must report this information to IRS on separate Forms 8851 for 2005 and 2006, no later than March 20, 2007. It will appear in Internal Revenue Bulletin 2007-10, dated March 5, 2007. (Internal Revenue Service) Some Employers Offer Free Drugs in Effort to Lower Healthcare Costs Excerpt: "For years, employers have been pushing their workers to pay more for health care, raising premiums and out-of-pocket medical expenses in an effort to save money for the company and force workers to seek only the most necessary care. Now some employers are reversing course, convinced that their pennywise approach does not always reduce long-term costs." (New York Times; free registration required) Administration's Fiscal Year 2008: Focus on Health Care Excerpt: "Attached is a description of the recommendations regarding health care tax reform and HSAs that are contained in the Administration's Fiscal Year 2008 Budget Proposal. While, in a Congress controlled by the Democrats, it is highly unlikely that these provisions will be enacted; they will engender much debate about the shape of health care in the years to come." (Groom Law Group) In Oprah Winfrey Interview, Bush Promotes His Healthcare Reform Plan Excerpt: "President Bush's plan to expand health coverage by revamping the tax code has been pronounced dead by leading Democrats on Capitol Hill. But Mr. Bush, ever the optimist, forged ahead Wednesday, conducting a chat session here in Oprah Winfrey style with people who are uninsured." (New York Times; free registration required) Bush Vows Cooperation on Healthcare Reform Excerpt: "Hoping to gain support for his health care proposal, President Bush pledged Saturday to reach across party lines to reform the nation's medical insurance system so more of the 46 million uninsured Americans can afford coverage." (New York Times; free registration required) What's on the Horizon from FASB for Phase Two of Postretirement Benefit Accounting Reform? Excerpt: "During Phase Two, the FASB will review everything about postretirement benefit accounting. The Board is expected to firm up the timing and review process for the second phase of accounting reform within the next few months. . . . [T]he outcome will not necessarily look like the IASB's current postretirement benefit accounting requirements. In fact, the future accounting requirements may not look like anything we've seen before." (Watson Wyatt) California to Study Rising Costs of Postretirement Benefits Excerpt: "State pension systems for government workers and teachers -- CalPERS and CalSTRS -- have a combined unfunded liability of $49 billion. And California may owe between $40 billion and $70 billion in promised but currently unfunded long-term retiree health care for state workers. A four-day Desert Sun investigation in December revealed . . . ." (The Desert Sun) Text of Milliman's 2006 Ordinary Life [Insurance] Study of Overhead Expenses (PDF) 29 pages. Excerpt: "[V]ariable expense for policy issue and maintenance was imputed for each company. Overhead expense was defined as the excess of General Insurance Expense over the imputed variable expense. Commission and agency-related expenses were excluded from the studies, while marketing and developmental expenses incurred in the home office were included." (Milliman) Employee Assistance Plan Data Shows More Men Seeking Relationship Support Excerpt: "Despite traditional stereotypes, more men (23%) than women (18%) who access EAP services do so to get support for issues relating to their personal relationships, according to Shepell.fgi's newest research report entitled, 'Till Stress Do Us Part: An EAP's Perspective on Marital/Relationship Issues.'" (BenefitNews.com by Employee Benefit News) Opinion: Mandatory Family Leave Benefit in Washington State is Unwarranted Workplace Intrusion Excerpt: "House Bill 1658 would provide employees in the state up to five weeks of paid family medical leave each year. Workers could use it for personal sick leave, to bond with a newborn or adopted child, or to care for an ailing relative or domestic partner. The benefit would initially be capped at $250 per week and would be paid for by a payroll tax of 2 cents an hour per employee -- about $40 a year for a full-time employee." (Editorial in the Yakima Herald Republic Online) How Pitney Bowes Is Turning Its Innovative Health Care Practices Into a New Business Excerpt: "While the health care industry might seem like an unlikely business opportunity for a company known for selling postage meters, Pitney Bowes' approach highlights how an innovative health benefits team can take a problem and turn it into a solution that not only reduces costs but offers a potential revenue source." (Workforce Management) Prescription Drug Creditable Coverage Status Required to Be Disclosed to CMS by March 1 Excerpt: "This disclosure to CMS is required to be made annually and upon any change that affects whether a group health plan's prescription drug coverage is creditable. . . . For plan years ending in 2007 and after, the disclosure of creditable coverage status must be made within 60 days after the beginning of the plan year. This is by March 1, 2007 for calendar year plans." (Ballard Spahr Andrews & Ingersoll, LLP) Employers Expect 8% Increase in Health Care Costs This Year, Survey Finds Excerpt: "Employer health care costs last year increased by 8%, and companies expect the same rate of growth this year and in 2008, according to a survey released on Wednesday by Watson Wyatt Worldwide, the AP/Detroit News reports. The survey, which Watson conducted with the National Business Group on Health, included responses from 573 employers with at least 1,000 employees." (Kaiser Family Foundation) More Health Plans Experimenting with 'Value-Based Insurance Designs' Excerpt: "Despite expectations to the contrary, most pharmacy benefit designs that accompany consumer-driven health (CDH) plans continue to rely predominantly on the standard tiered-benefit system. But more plans are expected to start experimenting with unique benefit designs as evidence shows that 'value-based insurance designs' -- some of which eliminate copayments on certain drugs -- can lower overall health care costs, say pharmacy benefit experts." (AISHealth.com) Hospitals Outline Plan for Healthcare for All Americans Excerpt: "Joining the national debate over the 47 million people without health insurance, a group of the nation's largest for-profit hospital chains plan to propose on Thursday that individuals be required to have basic health coverage." (New York Times; free registration required) Aetna Launches Employer Health Insurance Plans for Early Retirees Excerpt: "One objective of Aetna, Inc.'s launch of four new plans for early retirees targeting the 55-to-65 age group Feb. 8 is to create long-term relationships with pre-retirees that can continue as the members age in to Medicare. The plans will be offered under the program name Retiree Health Access to the 250 employer-members of the HR Policy Association that provide health coverage to 2.5 million retirees." (AISHealth.com) Links to Items on Executive Comp, Benefits in General A Review of Employee Benefits Developments; February 2007 Edition PPA benefit statement requirements; HIPAA regs on nondiscrimination and wellness programs; ending of cash balance plan rulings moratorium; transitional relief for health FSA and HRA debit card reimbursements; ESOP regs on S corporation allocations; more 401(k) fee litigation; cases on top hat plans, COBRA damages. (HodgsonRuss LLP) Corrected Link: Insurance Information in Spanish -- Useful for Employers and Participants Excerpt: "Employers with many Spanish-speaking workers may want to take note of a new resource on benefits and insurance topics. To help educate Spanish-speaking consumers on various types of insurance, the National Association of Insurance Commissioners recently launched a new Spanish-language Web site that employers and workers can use." (BenefitNews.com by Employee Benefit News) Extensive Overview for Executives: SEC Issues Regs on Executive Comp Disclosure Requirements 10 pages. (Pillsbury Winthrop) ERISA Remedies Case Might Be Heard by Supreme Court Excerpt: "[The case turns on] whether Section 502(a)(2) permits a participant to bring an action to recover losses attributable to his account in a defined contribution plan that were caused by fiduciary breach." (Workplace Prof Blog) Newly Posted Events 401(k) Plans in Ohio on April 17, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) 401(k) Plans in Illinois on April 24, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Cafeteria Plans in Ohio on April 18, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Cafeteria Plans in Illinois on April 25, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) COBRA Compliance for Group Health Plans in Ohio on April 20, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) COBRA Compliance for Group Health Plans in Illinois on April 27, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Consumer Directed Health: Insight, trends and legislation in California on March 21, 2007 presented by ArlenGroup Consumer Driven Care 2007 Web Summit in California on March 19, 2007 presented by Healthcare Web Summit Deadline Looms -- IRS Guidance on Rollovers From Health FSAs/HRAs Teleweb Nationwide on March 8, 2007 presented by International Foundation of Employee Benefit Plans ERISA Compliance for Health & Welfare Plans in Ohio on April 19, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) ERISA Compliance for Health & Welfare Plans in Illinois on April 26, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HIPAA Portability, Privacy & Security in Ohio on April 20, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HIPAA Portability, Privacy & Security in Illinois on April 27, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HSAs, HRAs, and Consumer-Driven Health Care in Ohio on April 19, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HSAs, HRAs, and Consumer-Driven Health Care in Illinois on April 26, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Newly Posted Press Releases The Standard Rolls out New Web-based Data Review Tool for Plan Sponsors Standard Insurance Company Social Security Administration Research Contract Social Security Administration Newly Posted or Renewed Job Openings Pension Plan Administrator for Saville, Dodgen & Company, Certified Public Accountants & Advisors in TX Manager Client Relationships for Mutual of Omaha in NE Pension Consultant for McKay Hochman Co., Inc. in NJ Plan Compliance Officer - Retirement, HRA & FSA Plans for MidAmerica Administrative & Retirement Solutions, Inc. in FL Director - Compensation & Benefits for Takeda in IL Client Relationship Manager for Great-West Retirement Services in KS Pension Recordkeeper for Iris Bashi Associates, LLC in NJ Sr New Business Account Mgr for Standard Insurance Company in OR Account Manager-Institutional Partner Plan Support for Great-West Retirement Services in CO Pension Administrator for Valley Forge Consulting Corporation in PA Account Executive - Group Benefits for Lenox Advisors in NY Account Mgr-RP for Standard Insurance Company in OR Defined Contribution Analyst for Standard Insurance Company in OR Defined Contribution Analyst for Standard Insurance Company in OR Sr Account Mgr-RP for Standard Insurance Company in OR Handy Links:
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