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| February 20, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is University Conference Services
(Click on company name or banner to learn more.)
| 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. |
[Guidance Overview]
Update on Suggested Use of New FMLA Forms
Excerpt: "[T]he new Family and Medical Leave Act regulations took effect on January 16, 2009. The new regulations included reference to new required notices to employees and a new required workplace poster. The Department of Labor ('DOL') included as appendices to the regulations suggested prototype notices, new suggested medical certification forms, and the text for the new poster. . . . Not surprisingly, employers are already experiencing some confusion about how to use these new notices. The [target page offers] a brief 'step-by-step' approach." (Porter Wright Morris & Arthur LLP)
[Guidance Overview]
Health Information Technology for Economic and Clinical Health Act of Stimulus Bill
Excerpt: "Among the new requirements, described in more detail in the [article and charts linked from the target page], are a duty to notify each individual in the event of a security breach, the extension of direct penalties to business associates, additional access and accounting requirements, and stricter criminal and civil enforcement. Most of the HIPAA privacy and security requirements go into effect one year from enactment, although some provisions . . . have shorter or longer deadlines." (Groom Law Group)
[Guidance Overview]
ARRA Changes to HIPAA Include Requirements and Restrictions for Business Associates
Excerpt: "Buried deep within the 1,000-plus pages of the American Recovery and Reinvestment Act of 2009 (ARRA) are sweeping changes to the health information privacy and security regulations of the Health Insurance Portability and Accountability Act (HIPAA). These new provisions affect not only health care providers, health plans and health care clearinghouses, but a wide range of vendors and contractors that provide services to health care organizations." (Faegre & Benson)
[Guidance Overview]
The Stimulus Package Promotes Health Information Technology
Excerpt: "The Act contains a broad menu of measures to promote HIT and fund its adoption, among them: Giving statutory permanence to the Office of the National Coordinator of Health Information Technology (ONCHIT), previously a creature of executive order, and establishing a long list of priorities for the ONCHIT, such as an ambitious mandate to develop sorely needed standards for HIT by calendar year end and immediate funding of federal agencies to establish a national infrastructure for HIT adoption and deployment. Arranging for educational outreach to assist in the adoption of HIT. Establishing a variety of grants to states and Indian tribes to promote HIT adoption and create loan funds for providers to procure and implement HIT. . . ." (Davis Wright Tremaine LLP)
[Guidance Overview]
New FMLA Regulations: What Every Employer Should Know
Excerpt: "In November 2008, the U.S. Department of Labor published revised regulations to the Family and Medical Leave Act (FMLA or the Act) for the first time in the Act's 15-year history. The much anticipated regulations are over 750 pages long and take effect on Jan. 16, leaving scant time for employers to implement new procedures to comply with the law. The most significant of these changes are addressed herein." (Law Journal Newsletters' The Corporate Counselor via Blank Rome LLP)
[Guidance Overview]
COBRA Subsidies and Extensions under the American Recovery and Reinvestment Act of 2009
Excerpt: "The subsidy applies to periods of COBRA coverage that begin after February 17, 2009. A period of coverage is the monthly (or shorter) time period for which premiums are charged. If the period of coverage under your plan is a calendar month, your company will have to start providing the subsidy beginning March 1." (Warner Norcross & Judd LLP)
[Guidance Overview]
Stimulus Law Includes a Temporary Increase in the Income-Tax Exclusion for Transportation Benefits
Excerpt: "The temporary income-tax exclusion bill affects transit passes and expenses associated with vanpooling in 2009 by increasing the $120 per month maximum exclusion for such items to equal the $230 per month exclusion for parking. In 2010, the dollar amounts for each benefit may increase, depending on any inflation adjustment. The increase in the exclusion does not affect the qualified bicycle commuting reimbursement." (The Segal Group, Inc.)
North Carolina Bill Targets Public Employees who are Smokers or Obese
Excerpt: "State employees would have to stop smoking or lose weight if they want to receive more generous health benefits under a proposal presented to legislators Thursday. The financial motivation for workers, retirees and their dependents to improve their health are contained in recommendations from North Carolina State Health Plan administrator Jack Walker to shore up the plan's finances. The plan last year discontinued its wellness programs that gave merchandise to people who change health habits. 'Money incentives in smoking work,' Walker told the Joint Committee on Employee Hospital and Medical Benefits, composed of lawmakers that oversee the health plan. 'Offering prizes is ineffective.'" (AP via The Fayetteville Observer)
Health Insurers Expand Preventive Offerings
Excerpt: "In response to employer demand that health insurers improve diabetes care management, health plans are adopting benefit design approaches that encourage patients to take better care of this condition, according to a report released Wednesday, February 11. In addition, the report, co-sponsored by the National Business Coalition on Health and the Integrated Benefits Institute, found that health plans are embracing health promotion services." (Workforce Management; free registration required)
U.S. Employers Expect Steady Rise in Health Costs, According to Survey
Excerpt: "U.S. employers expect increases in health care costs will stay at a steady 6 percent this year, twice the rate of inflation, according to a survey published on Thursday. The survey of 489 large U.S. employers also showed that more plan to offer consumer-directed health plans in 2010 to try to control cost increases. 'Cost increases have stabilized, but the financial crisis is causing many companies to reevaluate their health plan strategies,' said Ted Nussbaum, group and health care practice expert at consultants Watson Wyatt, which helped conduct the survey." (Reuters)
Vacations, Holidays, and Personal Leave: Access, Quantity, Costs, and Trends (PDF)
4 pages. Excerpt: "'Program Perspectives on Paid-Leave Benefits' . . . presents BLS data on paid-leave benefits received by workers, such as holidays, vacations, and personal leave. This is the second issue of 'Program Perspectives,' a new publication in which BLS programs showcase their latest data." (U.S. Bureau of Labor Statistics)
Health Care Industry in Talks to Shape Policy
Excerpt: "Since last fall, many of the leading figures in the nation's long-running health care debate have been meeting secretly in a Senate hearing room. Now, with the blessing of the Senate's leading proponent of universal health insurance, Edward M. Kennedy, they appear to be inching toward a consensus that could reshape the debate. Many of the parties, from big insurance companies to lobbyists for consumers, doctors, hospitals and pharma.ceutical companies, are embracing the idea that comprehensive health care legislation should include a requirement that every American carry insurance." (The New York Times; free registration required)
Employers Use Eligibility Audits to Control Health Care Costs
Excerpt: "With cost-savings in mind, some employers are conducting dependent eligibility audits to accurately determine who is covered under their plan. A recent survey conducted by the International Foundation of Employee Benefit Plans (IFEBP) found that 26% of U.S. employers conduct eligibility audits for their health care plans. 'Employers conduct an eligibility audit to ensure that every person covered by their health plan is an approved dependent,' said Julie Stich, Senior Information/Research Specialist with the IFEBP, in a press release. 'When the audit is conducted, employers often discover many people -- former spouses, adult children, non-immediate family members -- who are covered under the health plan even though they do not qualify as a dependent.'" (PLANSPONSOR.com; free registration required)
VEBA Not Resolved in Tentative UAW Deals
Excerpt: "Although the UAW said Tuesday that it has reached tentative deals with each of the Detroit Three to modify its 2007 labor contract, the union acknowledged that the largest, and most contentious, issue remains. The tentative deal does not include an agreement on how to fund a critical health care trust -- commonly called a VEBA -- and no deal will be final until that gets worked out." (Detroit Free Press)
WellPoint Will Fund Health Insurance Payment Database
Excerpt: "New York Attorney General Andrew Cuomo said Wednesday that WellPoint Inc., the nation's largest health insurer, will pay $10 million to help establish a new independent database to determine the rate it pays doctors and hospitals out of its network. During a conference call, Mr. Cuomo said WellPoint agreed to no longer use a controversial database maintained by UnitedHealth Group Inc.'s Ingenix unit to determine the 'usual and customary' rate for out-of-network insurance reimbursements." (The Wall Street Journal)
Massachusetts Health Reform Is a Failed Model, According to Study
Excerpt: "In a study released Wednesday, two organizations say the Massachusetts health system is a failure and national policymakers should not look to that model as a possible solution. Instead, they propose a single-payer 'Medicare for all' system as a better alternative. Physicians for a National Health Program and Public Citizen, which support a single-payer health system, charged the Massachusetts project has not covered as many people as claimed, not contained costs, and hurt safety-net providers like public hospitals and community clinics." (HCPro, Inc.)
[Opinion]
We Need Health Care Reform, Not an Entitlements Commission
Excerpt: "In response to pressure from Blue Dog Democrats, the administration is hosting a 'fiscal responsibility summit' on February 23. Though it remains unclear what will come out of this process, some press reports, notably a Wall Street Journal article, claim the president 'gave the nod' to an entitlements commission whose recommendations would be put to an up-down vote before Congress. This may be premature, but it has caused understandable dismay among advocates gearing up for a universal health care offensive who now face the prospect of again playing defense on Social Security. We hope that the president will reject the idea of bypassing Congress, and use the occasion of the summit to make clear that we do not have a fiscal deficit problem so much as a problem of spiraling health care costs throughout the economy, not just in government programs like Medicare and Medicaid." (Economic Policy Institute)
University Conference Services (Sponsor)
(Click on company name or banner to learn more.)
| Weighing the Value of Your Health Care Plan |
| As health care costs continue to increase faster than inflation and the faltering economy exacts its toll on businesses, employers are struggling to balance the costs of their health care programs with the value these benefits provide to employees. The Orlando Health and Welfare Plan Management for Mid-Sized Employers Conference, March 1–4, 2009, gives you access to expert speakers and valuable information that will help you find the right solutions for your plan and equalize your costs and benefits. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Besides COBRA: What Does the Stimulus Package Contain of Interest to Employers
Excerpt: "While most of the media and commentary has been focused on the COBRA subsidy in the American Recovery and Reinvestment Act of 2009 (ARRA or 'the Act') signed by President Obama on February 17, there are additional provisions that employers should be aware of including, new tax credits, changes in unemployment benefits, limits on executive compensation and limits on the availability of HB-1 visas." (Littler Mendelson P.C.)
[Guidance Overview]
Executive Compensation Limitations & Corporate Governance Standards in Stimulus Bill (PDF)
3 pages. Excerpt: "The Secretary [of the Treasury] will review bonuses, retention awards and other compensation paid to the senior executive officers and the next 20 most highly compensated employees of each entity receiving TARP assistance before the date of enactment of the Stimulus Bill to determine whether any such payments were inconsistent with the purposes of the TARP or otherwise contrary to public interest. If the Secretary determines that any bonus or payment was inconsistent, then the Secretary will negotiate with the TARP recipient and employee for appropriate reimbursements to the federal government respecting the compensation or bonus." (Venable LLP)
UAW Chief Gettelfinger Says Workers' Cost Just 10% to Build Car
Excerpt: "Critics of unionized workers who say they are the core of the U.S. automakers' problems don't have a grasp of the facts, the head of the United Auto Workers contends. The labor expense to assemble a vehicle at a Ford, General Motors or Chrysler plant is about 10 percent of the total cost, said Ron Gettelfinger, president of the UAW. . . . Gettelfinger believes it makes no sense to blame all of the industry's problems on a group that accounts for such a small percentage of car costs. 'Some of the foreign brands operating in this country pay (workers) very close to what American firms pay,' he said." (Memphis Commercial Appeal)
Workplace Stress Research Promotes Employee Benefits
Excerpt: "Two University of Michigan business law professors who examined Fortune magazine's annual list of the nation's 'best companies to work for' conclude that generous 'complementary alternative benefits' can help alleviate workplace stress and violence. But it appears the key for maximizing value from voluntary benefits might be to not let employees labor too long over their choices. 'It seems that forcing benefit allocation and payment decisions down to employees would be more stressful for them and even serve as a distraction from their work,'. . . ." (Employee Benefit Adviser; Registration may be required)
Benefits Administration Fees Drop
Excerpt: "In a time of financial turmoil in world markets, it is encouraging to know that HR services clients are reaping the benefits of greater marketplace efficiencies. The clearest evidence is that benefits administration fees have dropped dramatically during the past four years. While the magnitude of decrease differs by benefit program -- 401(k), pension, or health and welfare -- in all cases, the cuts exceed 20 percent." (HRO Today)
Newly Posted Events
401(k) Plans After the Fall: What Now?
in Illinois on March 19, 2009
presented by Katten Muchin Rosenman LLP
American Recovery and Reinvestment Act of 2009 - Smartcast
Nationwide on February 25, 2009
presented by FutureOffice Network
Economic Stimulus and Children's Health Acts Require Immediate Action for Health Plans
Nationwide on March 12, 2009
presented by ABA Joint Committee on Employee Benefits
Executive Compensation Disclosure Update – 2009 Proxy Season, Part 2 Webcast
Nationwide on February 26, 2009
presented by BNA, Inc.
Midwest Business Group on Health’s 29th Annual Conference: Health Benefits and the Game of Life
in Illinois on May 7, 2009
presented by Midwest Business Group on Health
Stimulus Bill Changes HIPAA Privacy and Security - Are You Prepared? Webcast
Nationwide on March 3, 2009
presented by International Foundation of Employee Benefit Plans
Understanding the Redesigned Form 990
in Colorado on February 25, 2009
presented by Denver Compensation & Benefits, LLC
Your 2009 Survival Kit: Managing Benefit and Retirement Issues - Challenging Economic Times Demand Creative Solutions
in Pennsylvania on February 24, 2009
presented by PEBA --Penjerdel Employee Benefits & Compensation Assn.
Newly Posted Press Releases
Health Care Benefit Cost Increases to Remain at 6% in 2009
Watson Wyatt
Employers Taking a Close Look At Who Is Covered Under Their Health Plan
International Foundation of Employee Benefit Plans
ASPPA Celebrates America Saves Week
American Society of Pension Professionals & Actuaries (ASPPA)
CUNA Mutual Selects Synapses for Comprehensive 401(k) Analysis
Synapses Inc.
ASPPA & NTSAA Announce New Credential Program
ASPPA and NTSAA
Newly Posted or Renewed Job Openings
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Manager, Retirement Plans
for Hudson (Retained Search)
in IL, WI
Employee Benefits Service Manager II
for The Standard
in WA
Benefits Analyst II
for Milliman
in WA
Senior Client Consultant, Emerging Corporate
for Prudential Financial
in IA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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