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October 10, 2008

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


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[Official Guidance] Text of IRS/DOL/HHS Request for Information on Sections 101 - 104 of Genetic Information Nondiscrimination Act of 2008
December 9 deadline for comments. Excerpt: "1. To what extent do group health plans and health insurance issuers currently use genetic information, such as family medical history, and for what purposes? For example, is genetic information currently used for group rating purposes, or for purposes of a wellness program that otherwise complies with HIPAA's nondiscrimination requirements? 2. How do plans and issuers currently obtain genetic information (for example, through health risk assessments, the Medical Information Bureau, or other entities under common control)? 3. Under what circumstances do plans or issuers currently request or require an individual to take a genetic test? 4. Under what circumstances do plans or issuers currently ask for the results of a genetic test in order to make a determination regarding payment of benefits? What is the minimum amount of information necessary for a plan or issuer to make a determination under such circumstances? 5. What types of research do plans or issuers currently conduct or support using genetic tests?" (Internal Revenue Service; Employee Benefits Security Administration; Centers for Medicare & Medicaid Services)


[Guidance Overview] Personal Liability Claims Based Upon Unpaid Plan Contributions Advance
Excerpt: "In difficult economic times, a case like Calemine resonates more than it would otherwise. Here, the plaintiffs obtained a judgment, but the defendant employers declared bankrup.tcy. Unpaid plan contributions lay at the center of the dispute. This recent opinion illustrates that judgments against the bankrupt employer may not be worthless after all." (Health Plan Law blog by Attorney Roy F. Harmon III)


[Guidance Overview] San Francisco Health Care Law Survives ERISA Preemption
Excerpt: "Two key observations support, in large part, the court's lengthy decision. First, the Ninth Circuit found the Ordinance does not require employers either to establish an ERISA plan or modify an existing ERISA plan in order to comply with its provisions. The court noted all employers subject to the Ordinance have the option to make payments directly to San Francisco to satisfy the minimum health care expenses spending requirement." (Jackson Lewis LLP)


[Guidance Overview] Towers Perrin U.S. Legislative Tracking Charts -- Health and Welfare -- Updated October 7, 2008 (PDF)
23 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)


[Guidance Overview] Hewitt Federal Legislation Quick Guide Updated October 8, 2008, for Health and Welfare Plans (PDF)
2 pages. This 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. (Hewitt Associates)


[Guidance Overview] Provisions of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008
Excerpt: "Like current mental health parity rules, the new law does not require group health plans to provide mental health and substance abuse benefits. However, group health plans that provide such benefits must provide parity between mental health and substance abuse benefits and medical/surgical benefits. The [chart on the target page] shows the changes between existing and amended mental health parity law." (Faegre & Benson LLP)


[Guidance Overview] Massachusetts Tightens Employer Fair Share Contribution Testing and Filing Requirements (PDF)
3 pages. Excerpt: "The Massachusetts Division of Health Care Finance and Policy has adopted new regulations that change the employer fair share contribution (FSC) requirements under the state's health care reform law. The state has also increased the frequency of required employer FSC filings, and the Massachusetts Division of Unemployment Assistance has issued new regulations on the filing requirements. Hearings were held on the minimum creditable coverage requirements scheduled to become effective January 1, 2009, with revised final regulations expected by October 17, 2008." (Buck Consultants)


[Guidance Overview] CMS Guidance on Health Plan Reporting Requirement (PDF)
2 pages. Excerpt: "The Medicare, Medicaid and SCHIP Extension Act of 2007 (MMSEA) imposes a new reporting requirement on group health plans that cover Medicare-eligible individuals. The Centers for Medicare and Medicaid Services (CMS) has begun to issue guidance on this new requirement, which becomes effective in 2009." (Buck Consultants)


[Guidance Overview] Medicare Update: 2009 Premiums, New Marketing Rule Effective October 1; November 15 Deadline Reminder
Excerpt: "CMS finalized new marketing rules for Medicare Advantage and Part D Plans that go into effect no later than October 1, 2008, the beginning of the marketing year. The rules finalize six new marketing provisions and modify the 'file and use' process . . . ." (Deloitte via BenefitsLink.com)


[Guidance Overview] Massachusetts Seeks to Expands Its Landmark Health Care Reform Law
Excerpt: "Under the Massachusetts health care reform initiative, which became law in April 2006, 439,000 residents of the Commonwealth have become newly insured. Slated to become effective in 2009 are provisions which will impose new minimum standards on the health insurance that Massachusetts residents are required to carry under financial penalty. The Commonwealth seeks to further expand the reform by widening the group of employers potentially subject to a 'fair share contribution' to the state fund." (Deloitte via BenefitsLink.com)


[Guidance Overview] Financial Bailout Gives Life to Mental Health Parity Law (PDF)
3 pages. Excerpt: "The financial bailout bill signed by President Bush includes provisions that will require group health plans to provide greater parity between mental health benefits and benefits for other medical conditions. It also extends these parity requirements to substance abuse benefits." (Buck Consultants)


The Erosion of Employer-Sponsored Health Insurance: Declines Continue for Seventh Year Running (PDF)
23 pages. Excerpt: "Even as employment-based coverage has declined, the share of Americans who receive coverage through private purchase (non-group market) has also declined. The safety net programs -- Medicaid and the State Children's Health Insurance Program (SCHIP) -- have kept millions of families insured when their employment-based benefits were lost." (Economic Policy Institute)


States Use of 'Cafeteria Plans' to Provide Health Insurance
Excerpt: "In the past three years, several states are experimenting with a new use for an old idea, aimed at lowering costs for both employees and their employers. 'Section 125 cafeteria plans' were created by a 1978 federal law which amended the Internal Revenue Code. Designed as an optional feature for employers, cafeteria plans allow employees to pay for a variety of health care expenses without paying any federal tax on those charges. . . . As of mid-2008, at least 12 states had adopted a cafeteria plan approach into state-based health reforms, with a dual goal of keeping coverage available and affordable while expanding the numbers using commercial health insurance. " (National Conference of State Legislatures)


McCain's Tax Credit for Healthcare Raises Questions
Excerpt: "The centerpiece of the Republican nominee's health care program is a refundable tax credit of $2,500 for individuals and $5,000 for households. The credit would go to insurers, though participants could deposit any amount higher than the premiums into personal health savings accounts. McCain would tax consumers on the value of employer-paid health coverage. Employees are not taxed currently on those benefits. Democratic rival Barack Obama, whose health plan includes subsidies to low-income families having trouble getting employer-sponsored or publicly funded coverage, said Wednesday that McCain's plan is a tax increase." (The Miami Herald)


Law Equalizes Coverage for Mental, Physical Care and Measure Could Expand Treatment Services
Excerpt: "The new law bars companies from setting higher co-pays or deductibles for mental health and substance abuse treatment. Plans also will be prohibited from lowering benefit levels or restricting the number of outpatient therapy sessions or hospital treatment days. And if a health plan allows out-of-network visits for the treatment of physical illnesses, it will also have to offer identical out-of-network coverage for mental health care." (The Washington Post; free registration required)


Driving Productivity by Investing in Health 2008: Survey Results
Excerpt: "Hewitt's The Road Ahead: Driving Productivity by Investing in Health 2008 survey found that employers are beginning to develop long-term health and productivity strategies to tackle rising health care costs and improve employees' overall health. Employers are recognizing that their employees' health has a direct impact on the bottom line and it is more than a Benefit/HR issue -- it is a business issue." (Hewitt Associates)


Employers Around the Globe Climb on Wellness Program Bandwagon
Excerpt: "The number of employers outside of North America turning to workplace wellness strategies has nearly doubled in the past 12 months to 40% of those in Europe, Asia and Africa. A Buck Consultants news release about its study reported that the wellness programs are still most prevalent in North America where 82% of responding employers have them in their benefits packages." (PLANSPONSOR.com; free registration required)


This Open-Enrollment Season, Beware of Out-of-Pocket Costs
Excerpt: "As companies head into open-enrollment season, when they let employees pick their plans for next year, many firms say they are reluctant to boost health-care premiums too sharply at a time when wages are stagnant. Instead, workers can expect to pay significantly more for such out-of-pocket items as deductibles, co-payments and other fees." (The Wall Street Journal)


Lewin Group Analysis Predicts How McCain, Obama Health Care Proposals Would Affect Uninsured U.S. Residents
Excerpt: "The health care proposal announced by Republican presidential nominee Sen. John McCain (Ariz.) would reduce the number of uninsured U.S. residents by about 21.1 million by 2010, and the plan announced by Democratic presidential nominee Sen. Barack Obama (Ill.) would reduce the number by about 26.6 million, according to an analysis released on Wednesday by the Lewin Group, the AP/Houston Chronicle reports." (Kaiser Family Foundation)


[Opinion] Tax Credits Would Move People Out of Group Plans and Into Individual Policies Where the Benefits Aren't As Good
Excerpt: "If you think that 'The Market' -- whatever market -- always works for the best, you'll love John McCain's version of health insurance reform. It uses the tax code to shove you toward individual policies (more 'choice!') and away from comprehensive, employer supported plans. The nonpartisan Tax Policy Center puts the cost of his proposed subsidies at $1.3 trillion over 10 years." (Jane Bryant Quinn, Newsweek, via Physicians for a National Health Program)



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Links to Items on Executive Comp, Benefits in General

[Guidance Overview] Employee Benefit Changes Included in Financial Bailout Law
Excerpt: "The massive financial bailout law, H.R. 1424, enacted on October 3, 2008 includes a number of extensions of tax provisions due to expire. Provisions of H.R. 1424 and other new laws affect employee benefits, including an extension and expansion of the mental health parity rules, health coverage for college students on medical leave, and rules for bicycle commuting. The law also has several executive compensation changes targeted at affected financial institutions that will be covered in a separate WorkCite edition." (McGuireWoods LLP)


[Guidance Overview] The Emergency Economic Stabilization Act of 2008 Extensively Regulates Executive Compensation; Leaves Many Unanswered Questions
Excerpt: "The Emergency Economic Stabilization Act of 2008 (the 'Act'), signed into law by President Bush on October 3, 2008, contains several provisions affecting executive compensation. Ambiguities in the Act, however, create questions as to the scope of the Act's provisions and permissible avenues of compliance." (Littler Mendelson P.C.)


[Guidance Overview] IRS Clarifies Section 409A Calculation of Grandfathered Amount in Non-Account Balance Plans
Excerpt: "For taxable years after December 31, 2004, the grandfathered amount may increase based on 'reasonable actuarial assumptions.' Reasonable assumptions used under the plan as of December 31, 2004 – or assumptions used under a qualified plan whose benefits are part of the benefit formula of the plan – are presumed reasonable for purposes of determining the post-2004 grandfathered amount." (Deloitte via BenefitsLink.com)


[Guidance Overview] Towers Perrin U.S. Legislative Tracking Charts -- Human Resources -- Updated October 7, 2008 (PDF)
15 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)


[Guidance Overview] Hewitt Federal Legislation Quick Guide Updated October 8, 2008, on Human Resources & Employment Law (PDF)
2 pages. This 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 human resources and employment law. (Hewitt Associates)


Financial Education Is Vital to Navigate Today's Tough Times (PDF)
3 pages. Excerpt: "More and more employees . . . are demanding financial education services at the workplace, and companies are answering their call. 'There are some highly intelligent, wise business leaders who recognize that basic financial education is good for the employees, and [the company's] bottom line,' says Thomas Garman, president of the Personal Finance Employee Education Foundation (PFEEF)." (Investment Adviser via Financial Finesse)




Newly Posted Press Releases

ABG Unveils Interactive, Video Based Participant Engagement System
Alliance Benefit Group

U.S. Labor Department Seeks Comments On Genetic Nondiscrimination Requirements
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

ERIC Urges Ninth Circuit To Overturn Panel Ruing That ERISA Does Not Preempt San Francisco Health Ordinance
ERIC (ERISA Industry Committee)

ERIC Files Comments on DOL Proposed Regulation on Investment Advice
ERIC (ERISA Industry Committee)

Recall of Most of Nation's 401k Plans
Benchmark Financial Services, Inc.

Alliance Benefit Group of Illinois Joins Select Group of ASPPA Certified Firms
Roland|Criss Fiduciary Services

Guardian Program Designed to Reduce Costs of Employee Absences and Simplify Administration for Complying with Family and Medical Leave Act
Guardian

The Standard Offers Web-Based Tool to Simplify Enrollment and Administration
The Standard

401kDIRECT Launches New 401k Program
401kDIRECT



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