| BenefitsLink Welfare Plans Newsletter |   |
February 26, 2007
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Detailed Overview: Massachusetts Moves Forward in Implementing Landmark Health Care Reform Act
Excerpt: "This law includes an individual health coverage mandate for all Massachusetts residents and fair share contribution requirements, free rider surcharges, and a cafeteria plan requirement for employers. The Massachusetts law is receiving a great deal of attention nationwide. Plan sponsors in other states may be interested in these developments, which are being held as examples that other states may elect to follow." (Sibson Consulting)
Mental Health Parity Bill on the Move
Excerpt: "This new bill would expand parity by applying it to deductibles, co-payments, out-of-pocket expenses, coinsurance, covered hospital days, and covered and out-patient visits. The measure includes a small business exemption for companies with fewer than 50 employees, and also includes a cost exemption for all businesses." (Human Resource Executive Online; free registration required)
Overview: Archer MSA Trustees' Reports Due March 20
Excerpt: "Announcement 2007-24 notifies Archer MSA trustees and custodians that they must report on Form 8851, no later than March 20, 2007, 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." (Employee Benefits Institute of America)
Significant Case: Plan Administrator Provided COBRA Election Notice with 14-Day Period
Excerpt: "To create proof of mailing, plan administrators should have procedures for retaining copies of COBRA election notices and maintaining evidence of their mailing, and they should make sure that those procedures are consistently followed." (Employee Benefits Institute of America)
Significant Case: Failure to Notify Claimant of Final Decision Violated DOL Claims Procedure Regs
Excerpt: "This is pretty much a plain-vanilla claim denial, but there are two points of interest. First, neither the hospital nor the court took issue with the plan's practice of sending an EOB that treated the claim as 'deemed denied' while the plan obtained and reviewed information on possible preexisting conditions, even though the plan apparently took more time than allowed by the DOL claims procedure regulations to send the EOB and then make its decision." (Employee Benefits Institute of America)
Audio: Medical Care Costs Rose Last Month by Fastest Rate in 15 Years
Excerpt: "The U.S. federal government reported Wednesday that medical-care costs rose last month by the fastest rate in 15 years, and those costs are projected to keep rising. At the same time, the government is expected to pick up a bigger share of the tab." (National Public Radio)
AARP Announces 2007 Legislative Agenda
Excerpt: "AARP at a news conference on Wednesday said that examining how Medicare reimburses physicians and managed care plans and giving the government the authority to negotiate prescription drug prices under the Medicare drug benefit are at the top of the group's legislative agenda this year, CQ HealthBeat reports." (Kaiser Family Foundation)
Obese Police: Firms Want Workers to Slim Down
Excerpt: "Frustrated by traditional 'wellness' programs that suffer from low participation, more employers are dangling incentives -- gift cards, discounts on health premiums or even cash -- to persuade workers to shed pounds. They're giving preventative health care a second chance, viewing incentive programs as a last resort after years of shifting runaway health care costs to workers." (Chicago Business)
Opinion: Private Health Insurance is Not the Answer to the Problem of the Uninsured
Excerpt: "Public officials across the political spectrum are, in effect, seeking to expand the customer base for a highly profitable industry. . . . Despite the overwhelming evidence from other industrial countries -- and even domestic programs such as Medicare -- that government-run health plans are much more efficient, the U.S. political class seems to be on a mission to save private insurance." (Phil Mattera on Physicians for a National Health Program)
Overview: IRS Guidance on 2007 HSA Changes, and Rules on HSA-Compatible Coverage (PDF)
7 pages. Excerpt: "Speaking of HSAs, earlier this year the IRS issued a private letter ruling that provides helpful guidance concerning the types of supplemental health and accident benefits that are HSA-compatible (that is, the coverage does not disqualify an individual from making HSA contributions), and the types that are disqualifying." (Lockton Benefit Group)
Those Multiple Choices in Long-Term Care Policies
Excerpt: "In buying a policy, you can choose almost any number of years -- or a lifetime -- of benefits and raise or lower the daily dollar amount or the waiting period before benefits begin. Inflation protection against rising costs of care can be on either a simple or a compound basis -- or you can choose to do without it." (New York Times; free registration required)
Links to Items on Executive Comp, Benefits in General
8th Circuit Requires Detrimental Reliance Before Employee Can Recover Due to SPD Error
Excerpt: "This case is one of three recent Eighth Circuit opinions involving summary plan descriptions (see case note below). As in the case of the other two opinions, this decision reverses a district court holding in favor of the plan participant." (Health Plan Law blog by Attorney Roy F. Harmon III)
Opinion: Alaska Supreme Court Ruling on Same-Sex Benefits is Faulty Application of Constitution
Excerpt: "Homose.xual activists and their supporters claim that the state uses an unequal pay scale by paying spousal benefits only to married employees. Their remedy is to include homose.xual 'partners.' The court's proposed plan adds only same-sex partners, giving them 'special rights' by granting marital privileges without the responsibility of a marital contract." (Debbie Joslin in the Anchorage Daily News)
ERISA Preempts Washington State Law on Health Coverage for Domestic Partners, Official Says
Excerpt: "In August, a heterose.xual woman . . . became one of the first people to ask for protection under the law. [She] claimed that her employer discriminated because it did not provide benefits to her male partner, while providing benefits to partners of g.ay and les.bian co-workers. On Friday, the Human Rights Commission said a federal law that governs some health care plans pre-empts the state civil-rights law invoked in [her] case." (Seattle Post-Intelligencer)
Significant Case: CEO and Companies Liable for Squandering Plan Assets
Excerpt: "In a series of transactions, the CEO and companies used funds of two ERISA pension plans to, among other things, make a personal loan to the CEO, pay the CEO's tax liability, fund payroll, make loans to the companies, finance a casino project, and secure and pay other corporate debts. Along the way, the bulk of the plans' loans to the companies was converted into a 40% stock equity holding in the companies." (Employee Benefits Institute of America)
Newly Posted Events
2007 Employee Benefits Conference: Employee Benefits after the Pension Protection Act of 2006
in New York on May 10, 2007
presented by New York State Society of CPAs
Annual Legal and Regulatory Update
in Ohio on March 15, 2007
presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter
Newly Posted Press Releases
U.S. Labor Department’s EBSA Extends Parity Rule Covering Mental Health Benefits
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
New Selection of Employee Benefits and Compensation Books Available
International Foundation of Employee Benefit Plans
Treasury, Education Host Summit About Teaching Students Better Money Management
U.S. Department of Treasury
SureWest Communications to Freeze Pension Plan
SureWest Communications
Newly Posted or Renewed Job Openings
Sr. Member Retirement Services Specialist
for Orange County Teachers Federal Credit Union
in CA
Communications Consultant/SPD Specialist
for a boutique communications consulting firm in the Phoenix area
in AZ
Assistant Director of Administration
for MidAmerica Administrative & Retirement Solutions, Inc.
in FL
Benefit Solutions Sr. Sales Executive
for Ceridian
in AR, FL, LA, MS, OK, TN
Conversion Specialist
for The Newport Group
in NC
Plan Document Specialist
for Preferred Pension Planning Corporation
in NJ
Client Services - Account Manager
for ExpertPlan, Inc.
in NJ
Financial Transactions Specialist
for ExpertPlan, Inc.
in NJ
Associate Product Manager, 401(k) Products
for Citi, Smith Barney
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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