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| December 11, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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(a) New Guidance Documents
U.S. Labor Department Publishes 2007 Form M-1 For Multiple Employer Welfare Arrangements
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
(b) News
IRS Gives Its Workforce More Benefits Decision Time
Excerpt: "The Internal Revenue Service, which knows a thing or two about requests for extensions, is giving its giant work force a couple of extra weeks to pick their health plan for 2008." (The Washington Times)
New Safe Harbor Limits Supplemental Health Underwriting
Excerpt: "The Employee Benefits Security Administration has issued a batch of guidance that could affect companies that sell supplemental health insurance benefits." (The National Underwriter Company; free registration or paid subscription required)
Massachusetts Panel to Press Insurers on Premiums
Excerpt: "Concerned that rising costs could jeopardize Massachusetts' landmark health insurance initiative, a state panel voted . . . to press insurers to hold premium increases to 5 percent next year for unsubsidized plans sold across the state. The panel also instructed insurers to try to curb premiums without shifting significantly more costs to consumers." (The Boston Globe)
(c) Summaries of Guidance; Filed Comments
CORRECTED LINK: Plan's Arbitration Clause Requiring Cost-Sharing Violates ERISA and Is Unenforceable
Excerpt: "EBIA Comment: This case gives us an opportunity to comment on the provisions in the DOL regulations affecting arbitration of benefit denials. The regulations expressly prohibit mandatory binding arbitration only for group health and disability claims. Group health and disability plans that wish to use binding arbitration -- i.e., arbitration that precludes any later challenge in court -- may only do so by offering it to claimants as a voluntary method of appeal." (Employee Benefits Institute of America (EBIA))
Overview of Guidance Released on Medical Expense Deductions, Rev. Rul. 2007-72
Excerpt: "The IRS has issued guidance regarding the deductibility of amounts paid by individuals for diagnostic and similar procedures, including certain devices, not compensated by insurance or otherwise, as medical care expenses under Code Sec. 213(a). In each of the three scenarios presented, the amounts paid by taxpayers were expenses for medical care deductible under Code Sec. 213(a), subject to the limitations of that section including the seven and a half percent floor on deductibility." (CCH Incorporated)
(d) Trends, Surveys, Research
Fewer Medicare Drug Plans Offer 'Doughnut Hole' Coverage in 2008
Excerpt: "Few Medicare plans in 2008 will offer brand-name prescription drug coverage in the so-called 'doughnut hole' gap because of cost, meaning that Medicare beneficiaries will have fewer options when choosing a plan during the open enrollment period that ends Dec. 31, the San Francisco Chronicle reports." (California HealthCare Foundation)
Reconsidering Retiree Health Benefits
Excerpt: "At a time when many colleges are concerned about the cost of paying for their employees' post-retirement health care, Dartmouth College is floating a plan that would scale back existing coverage for some employees and eventually cut it altogether for others." (Inside Higher Ed)
In-House Medical Visits Ease Health Costs for Small Businesses, Uninsured Workers
Excerpt: "Employees at the Grove Park Inn no longer have to leave the hotel to ask a doctor about a mysterious mole or to find out why their nose can't stop running. They simply have to make an appointment to see the Rev. Chris Newcomb, a physician's assistant and director of Three Streams Family Health Center, a Christian-based nonprofit. Newcomb visits the hotel every two weeks to treat employees' minor medical problems." (Asheville Citizen-Times)
Computers Get Couch Potatoes Moving
Excerpt: "Computer-generated phone calls may be an effective, low-cost way to encourage sedentary adults to exercise, a unique study has found." (Employee Benefit News; free registration required)
The State of Regional Health Information Organizations: Current Activities and Financing
Excerpt: "Electronic clinical data exchange promises substantial financial and societal benefits, but it is unclear whether and when it will become widespread. In early 2007 we surveyed 145 regional health information organizations (RHIOs), the U.S. entities working to establish data exchange. Nearly one in four was likely defunct. Only twenty efforts were of at least modest size and exchanging clinical data. Most early successes involved the exchange of test results. To support themselves, thirteen RHIOs received regular fees from participating organizations, and eight were heavily dependent on grants. Our findings raise concerns about the ability of the current approach to achieve widespread electronic clinical data exchange." (Health Affairs)
Companies Trim Holiday Parties, Bonuses
Excerpt: "The holiday party punch will be flat this year, and so will a lot of paychecks as employers hold the line or cut back on year-end bonuses and holiday parties." (USA TODAY)
Employers Reining in Sick Days
Excerpt: "You may be happy to learn companies are targeting absenteeism in the battle to rein in labor costs. Over the past several years, employers have successfully finessed health plan redesigns so that employees pick up a greater portion of the burden of careening costs. Up next: workers who miss work. Armed with increasingly sophisticated analytical software, employers are more than ever studying patterns in sick leave. They're spotting those consecutive days off, or people who tend to return to work one day before short-term disability kicks in. And they're looking at spikes in sick days, in particular divisions or departments and upticks around the holidays." (St. Paul Pioneer Press)
Doctors' Survey Says Insurance Companies Impede Patient Care
Excerpt: "Health insurance companies often block needed patient care through delays in processing claims and intervention by unqualified personnel, according to a first-ever survey of Houston-area physicians." (Houston Chronicle)
Building a Personal Medical Database
Excerpt: "At this point in tech history, patients will have to enter much of this information by hand or scan doctors' reports into their computers. But some day, medical information experts hope, doctors and hospitals will use compatible systems that will allow lab results and doctors' reports to be automatically added to patients' online records." (Los Angeles Times)
Cleveland Doctors See Evidence of Obese Kids' Ill Health
Excerpt: "A study that followed 276,000 Danish children for a span of 46 years shows startling evidence that even moderately overweight children face significantly higher risks of heart disease in adulthood. The study is one of two reports in today's New England Journal of Medicine that highlight grim health consequences of a childhood obesity epidemic. The percentage of overweight children and adolescents has tripled since the 1970s." (The Plain Dealer)
Healthier Lifestyle Pays Off Financially, According to Study
Excerpt: "Using wellness programs to stay healthy can pay off financially. That was the finding from Blue Cross and Blue Shield of North Carolina yesterday. According to it, patients can save nearly $200 a year in health-care costs by adopting a healthier lifestyle." (Winston-Salem Journal)
(e) Policy, Opinion, Advocacy
Public's Health Care Preferences Elusive, According to Polls
Excerpt: "The polls demonstrate the long-standing conflict that has dogged every proposed overhaul of the health care system dating back to Harry Truman. Americans support the principle of extending coverage to millions of people, but only so long as they are not negatively affected by the potential trade-offs, namely higher costs or reduced access." (AP via The New York Times; free registration required)
Comments on Survey Results: Better Workforce Morale with No Health Insurance?
Excerpt: "'It's much better for employee morale if a small-business owner never offers health benefits, than it is to offer them and then be forced to take it away because it is too expensive to continue,' said William J. Dennis, NFIB's senior research fellow." (Physicians for a National Health Program)
Opinion: If You Want to See a California Politician Run for Cover, Ask About the Acronym 'GASB'
Excerpt: "At issue is health benefits for retired public employees. The math is straightforward: Politicians are making promises to today's workers that will require either huge tax increases or draconian cuts to other programs when the employees reach retirement age. Neither the state nor most local governments are putting aside a dime to cover this liability." (San Francisco Chronicle)
Links to Items on Executive Comp, Benefits in General
Changes in Employee Benefits You Should Be Thinking About as 2007 becomes 2008
Discusses change in minimum vesting requirement, single-sum distributions from defined benefit plans, more. Excerpt: "In our field of law, the wonder and anticipation of the holidays are always joined by two other year-end phenomena: effective dates and deadlines. This eBenefits Alert discusses the most significant changes in the employee benefits arena that we should be thinking about as 2007 becomes 2008. Links to more detailed discussions are included for some topics." (Gray Plant Mooty)
Overview of Age, Sex and Disability Discrimination in Employee Benefit Plans
Excerpt: "At the federal level, the primary statutes addressing issues such as these are the Age Discrimination in Employment Act (ADEA), the Americans With Disabilities Act (ADA) and Title VII of the Civil Rights Act of 1964. Understanding these statutes is, therefore, crucial for an employer maintaining employee benefit plans today." (Tax Management Inc.)
Employers Refocus Strategies to Promote a 'Culture of Health and Financial Security,' According to MetLife Study
Excerpt: "After decades of focusing on health coverage as the exclusive avenue of providing financial protection against medical costs, employers are starting to shift to a focus on wellness and prevention. With health care cost inflation outpacing national inflation, employers are looking to newer strategies to drive a healthier workforce. According to MetLife's 5th Annual Employee Benefits Trend Study, more than one-fourth (28%) of all employers -- and nearly half (49%) of companies with 500 or more employees offer some type of a wellness program as a workplace benefit . . . ." (Human Resource Executive Online; free registration required)
Income of the Elderly Population Age 65 and Over, 2006 (PDF)
Pages 10-15 of 16 pages. Excerpt: "This article reviews the latest available data on the older population's income (from the U.S. Census Bureau's March 2007 Current Population Survey) and how it has changed over time, as well as how the elderly's reliance on these sources varies across demographic characteristics." (Employee Benefit Research Institute)
Equity Incentives in Limited Liability Corporations (LLCs)
This article discusses the difficult question of how to provide equity incentives in limited liability companies (LLCs). (National Center for Employee Ownership)
Overview of Year-End Planning Opportunities for Deferred Compensation Plans
Excerpt: "Although the IRS has now given employers until the end of 2008 to amend their deferred compensation plans to comply with Section 409A of the Internal Revenue Code, there are still some year-end planning opportunities available with respect to the these plans." (Mitchell Silberberg & Knupp LLP)
Gen Y Brings Entitlement Attitude to the Workforce
Excerpt: "A new CareerBuilder.com survey found 87% of responding hiring managers and HR professionals said some or most Gen Y (age 29 and younger) workers feel entitled to more in terms of compensation, benefits and career advancement than do workers from older generations.' (PLANSPONSOR.com; free registration required)
Newly Posted Events
Know Your Fiduciary Responsibilities - An Update on Pension Protection Act and Related Guidance for Practitioners - Archived from December 6, 2007 Webcast
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
SPARK Accredited Retirement Plan Consultant (ARPC) Classroom Training Session
in New York on February 13, 2008
presented by SPARK -- Society of Professional Asset-Managers and Record Keepers
Newly Posted Press Releases
Watson Wyatt Study Reveals Strong Link Between CEO Realizable Pay and Performance
Watson Wyatt
PPA Webcast Archive Available Online
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Employers Refocus Strategies to Promote a ''Culture of Health and Financial Security,'' According to MetLife Study
MetLife
ING US Wealth Management Reinforces the Importance of Stable Value Investments to Plan Participants Actively Seeking Stability of Their Retirement Savings
ING Group
Bridges to Excellence Announces New Implementation Programs for Health Plans and Additions to Board of Directors
Bridges to Excellence (BTE)
Newly Posted or Renewed Job Openings
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401(k) Client Service Account Executive
for BISYS Retirement Services
in PA
Account Manager II
for The Standard
in CA, OR, WA
New Business Account Manager
for The Standard
in OR, PA
Benefits Implementation Manager
for Hewitt Associates
in NJ
Senior Account Manager
for Charles Schwab
in TX
Business Development Specialist
for ING, US Financial Services
in CA, IN, KY, MS, NY, OH, PA, TN, WV
Health and Welfare Analyst
for Constantin Control Associates
in NJ
Actuary/Actuarial Candidate for Defined Benefit Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
Retirement Plan Manager
for Capital Group Companies
in VA
In-House Employee Benefits Counsel
for The National Rural Electric Cooperative Association (NRECA)
in VA
Pension Administrator
for Lurie Besikof Lapidus & Company, LLP
in MN
Benefits Administrator
for Benefits Administrators & Consultants (BAC)
in CO
Vice President - Northwest Region (TPA)
for Zenith Administrators
in WA
Account/Client Service Manager (TPA) - Las Vegas
for Zenith Administrators
in NV
Benefits Communication Specialist
for FPL Group, Inc.
in FL
Director Benefits and Compensation Accounting, MMBMI
for MassMutual Financial Group
in MA
Healthcare Employee Benefit Consultant
for Plante & Moran, PLLC
in MI
Director Family Market Development
for MassMutual Financial Group
in MA
Plan Administrator
for Blue Ridge ESOP Associates
in VA
E. B. Trust Administrator
for BB&T
in NC
Installation Conversion Consultant
for Wachovia Corporation
in MN
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