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| February 19, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is BeneCom Associates, LLC
(Click on company name or banner to learn more.)
| Your company promotes its products to customers. Why not your benefits to employees? |
| Ad campaigns can be expensive, but benefit statements from BeneCom are one of the least expensive promotional products available and show employees the great value benefits provide – value that’s often forgotten in today’s uncertain environment.
So, start promoting your benefits. Let your "customers" see the value they bring. |
[Guidance Overview]
CHIP Reauthorization Act Expansion of Special Enrollment Rights and Creation of New Notice and Disclosure Obligations for Group Health Plans
Excerpt: "The Act allows states to subsidize premiums for employer-provided group health coverage for eligible children and families. The Act also amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide for special enrollment rights, new notice and disclosure obligations, and penalties for non-compliance." (Seyfarth Shaw LLP)
[Guidance Overview]
CHIP Reauthorization Requires Fast Action by Group Health Plans, Including Multiemployer Plans (PDF)
2 pages. Excerpt: "The primary purpose of the Children's Health Insurance Program Reauthorization Act of 2009, which President Obama signed into law on February 4, 2009, is to reauthorize the State Children's Health Insurance Program (SCHIP or CHIP) through 2013. However, the law also includes provisions aimed at coordinating group health plan coverage with CHIP and Medicaid coverage." (The Segal Group, Inc.)
[Guidance Overview]
The Stimulus Law's Temporary Subsidy for COBRA Premiums (PDF)
2 pages. Excerpt: "The COBRA premium assistance subsidy program applies to all private and public sector group health plans currently subject to COBRA, and to continuation coverage under similar federal and state laws. Health plans will have to make the subsidized coverage available almost immediately. Consequently, plan sponsors will need to act now to comply with the new law." (The Segal Group, Inc.)
[Guidance Overview]
Employers Face Plenty of COBRA-Related Compliance Issues
Excerpt: "Most employers offering health care to workers in the U.S. will be required to comply with the COBRA provisions of the $787 billion stimulus package by March 1. The mechanics of the law are straightforward. The challenge for employers will be to comply with the law by the time the COBRA provisions take effect, which is the beginning of the first coverage month after the bill's approval. That is March 1 for many employers. The departments of Labor, Treasury, and Health and Human Services are expected to issue guidelines and help employers comply with the law. The following is a basic overview, based on readings of the law and analysis from benefits experts, of what employers need to know to comply with the legislation." (Workforce Management; free registration required)
[Guidance Overview]
Economic Stimulus Package Ratchets up Privacy and Security for Health Information
Excerpt: "The new economic stimulus package provides over $19 billion to support and promote the adoption of electronic health records (EHRs) for all Americans by 2014. With this added momentum comes concerns about the privacy and security of EHRs, particularly in the hands of health record exchanges, which are not directly regulated under the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The new legislation is loaded with requirements, new enforcement provisions and penalties for covered entities, business associates, vendors and others." (Davis Wright Tremaine LLP)
[Guidance Overview]
COBRA Subsidy Included in Recovery Act
Excerpt: "The subsidy is delivered by the employers, who must reduce COBRA premiums by 65% for involuntarily terminated employees and their families. The entity that receives the COBRA premiums, which will generally be the employer but in limited cases will be the insurance company, will be reimbursed by the government through a payroll tax credit or directly. The agencies that oversee COBRA are directed to issue regulations to provide guidance on this process." (Blank Rome LLP)
[Guidance Overview]
COBRA Subsidy Provisions Included in Stimulus Act: What Plan Sponsors and Administrators Need to Do NOW (PDF)
12 pages. Excerpt: "This COBRA premium assistance program requires immediate action by plan sponsors and administrators. For example, COBRA election notices must be revised to include information regarding the Subsidy, and special notices must be sent within 60 days of the Enactment Date to those who would otherwise be Assistance Eligible Individuals who are entitled to a special election period and those AEIs receiving COBRA continuation coverage as of the Enactment Date. Other action is also required to ensure compliance. This advisory walks through the practical impact the COBRA provisions of the Act have on employers, and what employers must do to comply." (Alston & Bird LLP)
[Guidance Overview]
New Economic Stimulus Law Requires Immediate Employer Action on COBRA, Includes Other Health Measures
Excerpt: "Other health provisions in the final measure expand HIPAA privacy and security rules; increase certain commuting benefits; provide funding for health information technology, comparative effectiveness research and state Medicaid programs; and increase health coverage tax credits for more workers under the Trade Adjustment Assistance Act." (Mercer LLC)
[Guidance Overview]
Federal Law Extends Health Benefits During Student Medical Leaves
Excerpt: "Effective for plan years starting on or after Oct. 9, 2009, a new federal law requires almost all group health plans to extend dependent coverage when a college student otherwise would lose eligibility because of a medically necessary leave of absence from school. Under the mandate, known as Michelle's Law, dependent coverage during student medical leave must continue for up to a year, unless the child's eligibility would end earlier for another reason. This Update summarizes Michelle's Law and its implications for employer-sponsored health coverage." (Mercer LLC)
[Guidance Overview]
American Recovery and Reinvestment Act of 2009 Changes COBRA Continuation Coverage Rules (PDF)
4 pages. Excerpt: "The Act includes changes to the Consolidated Omnibus Budget Reconciliation Act of 1985 ('COBRA') that, in general, provide certain individuals a government subsidy for COBRA premium payments and a special enrollment period for certain individuals who were terminated, but did not originally elect COBRA continuation coverage. The purpose of the provisions is to enable individuals who could not otherwise have afforded COBRA continuation coverage to maintain health insurance coverage while seeking new employment. These changes to COBRA are effective upon enactment of the Act and the subsidy will be available for periods of coverage beginning on or after enactment (so, presumably, for periods beginning March 1, 2009); accordingly, plan sponsors must take immediate action to implement the Act's requirements." (Dewey & LeBoeuf LLP)
The Stimulus Bill's Effect on the Health Care Industry (PDF)
5 pages. Excerpt: "[The America Recovery and Reinvestment Act of 2009] provides significant funding for research on the comparative effectiveness of items and services, increases the reach of the Health Insurance Portability and Accountability Act of 1996 and the rules promulgated thereunder ('HIPAA'), provides incentives to develop and encourage adoption of health information technology ('HIT'), and makes changes to certain Medicare and Medicaid payments for hospitals and hospices." (Winston & Strawn LLP)
The Path to a High Performance U.S. Health System
Excerpt: "This report from the Commonwealth Fund Commission on a High Performance Health System offers recommendations for a comprehensive set of insurance, payment, and system reforms that could guarantee affordable coverage for all by 2012, improve health outcomes, and slow health spending growth by $3 trillion by 2020 -- if enacted now to start in 2010. Central to the Commission's strategy is establishing a national insurance exchange that offers a choice of private plans and a new public plan, with reforms to make coverage affordable, ensure access, and lower administrative costs." (The Commonwealth Fund)
New U.S. Health Insurance Program Envisioned by The Commonwealth Fund
Excerpt: "A prominent private U.S. health policy group on Thursday proposed creating a major new public health program and government-operated insurance exchange as part of a plan to expand coverage and rein in health care costs. The Commonwealth Fund, a leading private health policy research group, unveiled a comprehensive plan for changing a U.S. health care system that is the world's most expensive yet lags many other nations in important measures of quality." (Reuters)
Long-Term Services and Supports as Part of Health Care Reform: Relief for the Invisible Uninsured? (PDF)
15 pages. Excerpt: "The 2008 presidential election demonstrated a broad interest in health care reform focused on access to affordable quality care and cost containment for both public and private-sector payers. So far, the policy debate has centered on the delivery of acute care services, rather than long-term services and supports (LTSS). But there is a strong case that health care reform will not succeed unless LTSS are also addressed. This brief summarizes some views and history about policy opportunities for long term care that were voiced at a January 2008 roundtable and updates the possibilities to January 2009." (National Academy of Social Insurance)
Massachusetts' Plan: A Failed Model for Health Care Reform (PDF)
19 pages. Excerpt: "While the number of people lacking health insurance in Massachusetts has been reduced, several recent surveys demonstrate that substantial problems in access to care remain in the state. While the new health insurance improved access to care for some residents, many low-income patients who previously received completely free care under the state's old free care program now face co-payments, premiums and deductibles that stop them from getting needed care. In addition, cuts to safety-net providers have reduced health resources available to the state's remaining uninsured, as well as to others who rely on safety-net providers for services in short supply in the private sector. These safety-net services include emergency room care, chronic mental health care, and primary care. The net effect of this expensive reform on access to care is at best modest, and for some patients, negative." (Physicians for a National Health Program)
New Jersey Audit of Health Benefits Botched, Unions Charge
Excerpt: "Some three weeks after the state launched an audit of roughly 225,000 public employees throughout New Jersey to root out ineligible dependents receiving health benefits, the workers and their unions are seething over how the effort is being conducted. 'People were quite upset because this was handled so badly,' said Hetty Rosenstein, area director for the Communications Workers of America. Union leaders say there was little or no advance notice of the audit and the information it would seek. 'People get a letter and they're being asked for extremely invasive, very personal information,' Rosenstein said." (The Star-Ledger (Newark, New Jersey))
University Conference Services (Sponsor)
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| Taking a Closer Look at Your Health Care Dollars |
| With an uncertain economy, premium increases that continue to outpace inflation, and a new administration in the White House pushing for change, offering a strong health care plan isn’t easy—or cheap. But making the most of your health care dollars has never been more critical. The Boston Health and Welfare Plan Management for Mid-Sized Employers Conference, April 26–29, is your source for solutions to the formidable challenges you face. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
American Recovery and Reinvestment Act of 2009 Summary of Executive Compensation Requirements
Excerpt: "The Act provides that during the TARP period, TARP recipients will be subject to the executive compensation standards established the Treasury, including the required standards contained in Section 111 of EESA . . ., and the applicable provisions of Section 162(m)(5) of the Internal Revenue Code which limit the deductibility for Federal income tax purposes to $500,000 for each SEO during the TARP period. " (Troutman Sanders LLP)
[Guidance Overview]
New Executive Compensation Limitations Under The American Recovery And Reinvestment Act
Excerpt: "This brings together into one final summary, all of my previous Blogs on the executive compensation provisions of the Emergency Economic Stabilization Act (EESA), the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act (ARRA) signed by President Obama on February 17, 2009. Friday, we will start talking about all the unanswered questions and the impact of the new executive compensation provisions on companies other than financial institutions." (Michael S. Melbinger via Winston & Strawn LLP)
[Guidance Overview]
American Recovery and Reinvestment Act of 2009 Expansion of Executive Compensation Restrictions
Excerpt: "The most significant executive compensation restriction in the 2009 Recovery Act limits the amount and timing of incentive compensation and retention bonuses that may be paid by TARP recipients to their executives before satisfying all obligations arising from financial assistance provided under the TARP. Up to 25 executives may be limited by this restriction depending upon the amount of TARP financial assistance. The 2009 Recovery Act also prohibits severance benefits that may be paid to named executive officers and the five next most highly compensated employees of a TARP recipient, and limits amounts that may be deducted for executive compensation." (McDermott Will & Emery)
[Guidance Overview]
Stimulus Package Adds Tight Limits on Executive Pay for Banks Receiving Federal Financial Aid
Excerpt: "The new restrictions under ARRA apply to all entities that have received or will receive financial assistance under TARP ('TARP-Recipients'), including participants in Treasury's Capital Purchase Program. The new restrictions will continue to apply as long as any obligation under TARP remains outstanding. However, the new law does allow any TARP-Recipient to repay any government assistance (after consultation with the appropriate banking regulator) and, thereby, avoid the new limitations." (Kilpatrick Stockton LLP)
[Guidance Overview]
Congressional Expansion of Restrictions on Executive Compensation for Financial Institutions under Troubled Asset Relief Program (PDF)
4 pages. Excerpt: "The revised restrictions that apply to companies receiving TARP assistance are: Prohibition on certain bonus, retention and incentive compensation for senior executive officers (SEOs)2 and up to 20 other employees; Prohibition on golden parachute payments to SEOs and the 5 next most highly-compensated employees; Required adoption of a company-wide policy on excessive or luxury expenditures; Mandated 'say on pay' shareholder vote on the compensation of executives . . . ." (Frederic W. Cook & Co., Inc.)
[Guidance Overview]
Stimulus Legislation Imposes Broader Executive Compensation Restrictions on Financial Institutions Participating in TARP (PDF)
4 pages. Excerpt: "The enactment of ARRA should be viewed as part of an evolving set of standards, rather than the final word, on executive compensation that can be paid by TARP recipients. Indeed, even before ARRA was signed into law by the President, the administration publicly expressed its concern that certain aspects of the new law may be counterproductive and that further work on these standards can be expected." (Dewey & LeBoeuf LLP)
Newly Posted Events
Financial Literacy in Times of Turmoil and Retirement Insecurity Conference
in District of Columbia on March 20, 2009
presented by Retirement Security Project
The New COBRA Premium Assistance Law: What You Need to Do to Comply Now
Nationwide on February 24, 2009
presented by EBIA / Thomson Reuters
Newly Posted Press Releases
U.S. Department of Labor Sues Former Cookeville, Tennessee, Firm to Give 401(k) Participants Access to Retirement Funds
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
PLANSPONSOR Announces 2009 Finalists for Retirement Plan Sponsor of the Year
PLANSPONSOR
Survey: Most Companies Taking Action to Boost Employee Morale
Accountemps
ADP Selects GuidedChoice for Plan Participants Investment Advice
ADP
Nearly 40 Percent of Employers Plan to Trim Benefits and Office Perks This Year, Finds New CareerBuilder.com Survey
CareerBuilder.com
U.S. Retirement Partners Acquires Group of Five Florida Firms
U.S. Retirement Partners
Newly Posted or Renewed Job Openings
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Insurance Specialist/Case Manager/Underwriter
for Nemco Brokerage, Inc.
in NY
Retirement Plan Consultant
for Qualified Plan Consultants, LLC
in IA
Account Manager
for Kaiser Permanente
in CA
External Sales Associate
for Transamerica Retirement Services
in NJ
Partner Operations Manager
for Transamerica Retirement Services
in CA
Pension Supervisor
for UFCW-Employers Benefit Plans of Northern California
in CA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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