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March 5, 2008

Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy.


Today's sponsor is Employee Benefits Institute of America Inc. (EBIA)

(Click on company name or banner to learn more.)
Banner ad for Employee Benefits Institute of America Inc. (EBIA)

Record Retention Requirements for Health & Welfare Plans

In Record Retention Requirements for Health & Welfare Plans, EBIA's experts analyze record retention requirements for ERISA health and welfare plans as well as other employer-provided health and welfare benefits not subject to ERISA. You'll find answers to your record retention questions for many benefits including cafeteria plans, DCAPs, qualified transportation plans, HSAs, group health plans (like major medical, dental, health FSAs, and HRAs), and other ERISA benefits.
Available now at the introductory price of $195.
Please enter priority code BL195. For more information and to order, visit http://www.ebia.com/OtherOfferings/Books/RecordRetention.

[Guidance Overview] Uncertainty Attends Benefit Claims Review on the Eve of MetLife Decision
Excerpt: "As the date approaches on which the Supreme Court will hand down a decision as to the proper standard of review in conflict of interests cases, judges and litigants alike will be increasingly affected by a potential change in the governing legal principles." (Health Plan Law blog by Attorney Roy F. Harmon III)

[Guidance Overview] Upon Replacing High-Deductible Health Plan with Traditional Coverage, What Happens to HSA Balance?
Excerpt: "An HSA owner may use HSA assets to pay for or reimburse eligible medical expenses, even if he/she is no longer eligible to contribute to an HSA." (Wolters Kluwer Financial Services)

[Guidance Overview] IRS Addresses Long-Term Care Policies Provided as an Investment and Benefit Under 401(k) Plan
Excerpt: "IRS recently ruled that the payment of premiums on long-term care policies held by a 401(k) plan for the benefit of electing participants would run afoul of the qualification requirements. IRS reasoned that such payments would be considered taxable distributions and, therefore, would violate the restriction imposed by IRC § 401(k) which permits distribution only on account of severance from employment, death, disability, plan termination, age 59-1/2, hardship, and a qualified reservist distribution. IRS Private Letter Ruling 200806013 (November 15, 2007)." (Deloitte via BenefitsLink.com)

Judge OKs GM-UAW Deal to Create Retiree Health Care Trust
Excerpt: "A federal judge on Tuesday granted preliminary approval to a settlement between General Motors Corp. and the United Auto Workers that would set up a trust to fund the automaker's retiree health care." (AP via Yahoo! Finance)

Retiree Couple Will Need $225K for Medical Expenses, According to Fidelity
Excerpt: "The figure, calculated for a couple age 65, is up 4.7 percent from the $215,000 estimate for 2007, the Boston-based financial services company said." (The Washington Post; free registration required)

Rx Copay Costs Increase for Workers
Excerpt: "Many thought that the low costs of generic drugs would decrease the copays for formulary and non-formulary prescription drugs. Yet, new research shows formulary and non-formulary copays have increased by at least 20% on all plan types over the last five years." (Employee Benefit News; free registration required)

Drug Prices Climbing, AARP Says
Excerpt: "Drugmakers increased their prices last year by an average of 7.4 percent for brand-name medicines most commonly prescribed to the elderly, according to the advocacy group AARP. The increase was about 2.5 times overall inflation, continuing a long-standing trend." (Contra Costa Times)

State of the States on Health Care Insurance Coverage (PDF)
62 pages. Excerpt: "State approaches to reform vary considerably, often depending on the political and fiscal environment; demographic characteristics, insurance market dynamics, and other economic variables also impact a state's capacity to act. Yet almost universally, states are considering health care reform in a very pragmatic way." (State Coverage Initiatives)

The Value Chain Case for Health Care Reform - A Conference Summary (PDF)
4 pages. Excerpt: "On April 24-25, 2007, the Federal Reserve Bank of Chicago and the Detroit Regional Chamber sponsored a two-day forum examining a 'value chain' perspective of health care delivery in the U.S. The program discussed how a value chain evaluation might lead to improvement in health care quality, reduction in costs, and increased user accessibility." (The Federal Reserve Bank of Chicago)

Living with GASB 45 - How to Manage Liabilities Associated with Retiree Medical Benefits
Excerpt: "GASB 45 has led many state and local governments to analyze the size of their retiree medical liability. Now that they've identified the number, the obvious question is: What do we do about it? This article offers several approaches for government employers looking to reduce the size of their retiree medical liability." (Milliman)

Baltimore Sun Examines Physicians' Reluctance To Use EHRs
Excerpt: "Although electronic health records have been considered the 'Next Big Thing in health care' for the past two decades, 90% of U.S. physicians and more than two-thirds of U.S. hospitals continue to opt for paper records, the Baltimore Sun reports. David Merritt, director of the Center for Health Transformation, said, 'Health care is at least a generation behind the rest of society in terms of technology,' adding, 'Doctors and hospitals don't use the technology we take for granted everywhere else.'" (Kaiser Family Foundation)

Paid Family-Leave Program Wins Approval in New Jersey Senate
Excerpt: "New Jersey would become the third state in the nation to offer paid family leave, under a bill narrowly approved yesterday by the state Senate. Proponents of the bill, which offers workers up to six weeks' leave to care for sick family members and newborn or adopted children, have fought for the provision for more than a decade. During the last legislative session, a paid family-leave bill that would have offered up to 10 weeks of leave failed to clear the legislature." (The Philadelphia Inquirer)

[Opinion] How High Loss Ratios Undermine Affordable Health Insurance, Updated March 2008 (PDF)
2 pages. Excerpt: "States across the country are unveiling various health reform proposals, and chief among those is the regulation of health insurance rates. California, Michigan, New Mexico and Pennsylvania have all introduced a controversial health insurance price-control scheme requiring health insurers to meet a targeted loss ratio of 70 percent or more, which means that at least 70 percent of collected premiums must be used to pay direct health expenditures." (The Council for Affordable Health Insurance)

[Opinion] American Benefits Council Amicus Brief in MetLife v. Glenn - On Writ of Certiorari to the U.S. Supreme Court (PDF)
33 pages. In support of Petitioners, METROPOLITAN LIFE INSURANCE COMPANY AND LONG TERM DISABILITY PLAN FOR ASSOCIATES OF SEARS, ROEBUCK AND COMPANY (American Benefits Council)


Links to Items on Executive Comp, Benefits in General

[Guidance Overview] Form T-1 Rules Proposed by DOL
Excerpt: "The Department of Labor's Employment Standards Administration (ESA) proposes to promulgate a rule that establishes a Form T-1 to be used by labor organizations to file trust annual financial reports with ESA's Office of Labor-Management Standard's (OLMS), provides appropriate instructions, and revises relevant sections of 29 CFR Part 403 relating to such reports. The proposed changes are made pursuant to section 208 of the Labor-Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. 438." (International Foundation of Employee Benefit Plans)

Executive Summaries of Benefits Quarterly, 1st Quarter, 2008, Articles on Retirement and Health Plans
The titles are: Conceptualizing the Defined Benefit Pension Promise - Implications from a Survey of Expert Opinion; The Consequences of Favoring Short-Term Budget Goals Over Long-Term Retirement Policy; Tax-Sheltered Annuities Under Code Section 403(B) New Regulations and New Obligations; Living With GASB 45: How To Manage Liabilities Associated with Retiree Medical Benefits; More Preventive Care, and Fewer Emergency Room Visits and Prescription Drugs -- Health Care Utilization in a Consumer-Driven Health Plan. (International Society of Certified Employee Benefit Specialists)

Retirement Benefits Rare Among Small Businesses in California
Excerpt: "Retirement benefits and 401(k) plans are scarce among small business owners surveyed. Only 17% offer 401(k) plans and 12% offer retirement benefits." (PLANSPONSOR.com; free registration required)


Newly Posted Events

Bank On It! - New DOL Focus on Deferral Deposits
Nationwide on March 25, 2008
presented by SunGard Relius

Benefits Boot Camp 2008
in Georgia on April 18, 2008
presented by WEB (Worldwide Employee Benefit Network) Atlanta Chapter

Employee Discrimination: What Employers Need To Know Now with Craig J. Davidson, CEBS
Nationwide on March 18, 2008
presented by Davidson Marketing Group -- FutureOffice Network

ERISA Litigation 2008 (Part 1) - Webcast
Nationwide on March 7, 2008
presented by West LegalEdcenter

Recent Notable ERISA Decisions
Nationwide on March 11, 2008
presented by Paul, Hastings, Janofsky & Walker LLP


Newly Posted Press Releases

ERIC Urges House Members to Oppose Mental Health Parity Mandate
ERIC (ERISA Industry Committee)

House Mental Health 'Parity' Bill Treats Behavioral Conditions Differently Than Other Medical And Surgical Services
American Benefits Council

RiverSource Mutual Funds Added to CPI Retirement Platform
CPI Qualified Plan Consultants, Inc.

Diamond's Retirement Study Finds Companies Ill-Prepared to Meet Baby Boomers' Health and Wealth Needs
Diamond

Georgia Association for Women Lawyers Announces Study Results from It's About Time II: Examining Flexible Work Arrangements
Georgia Association for Women Lawyers


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External Wholesaler
for John Mulligan & Associates, Inc.
in AL, AR, AZ, CA, KS, MN, MO, NM, OK, OR, TN, TX

Vice President, Data Consulting
for Fidelity Investments
in NC

Benefits Attorney
for Ralcorp Holdings
in MO

Benefits Analyst
for Appleton Papers
in WI

Client Representative
for Strategic Employee Benefit Services
in NY

Consultant, Health and Benefits
for Aon Consulting
in NC

Retirement Distribution Manager - Operations
for Charles Schwab
in AZ

Health & Welfare Admin II
for Standard Insurance Company
in CA

DC/DB Project Support Analyst
for New York Life Retirement Plan Services
in MA




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