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April 30, 2009


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

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[Guidance Overview]
The Employer's Guide to Legal and Workplace Implications of a Swine Influenza Outbreak (PDF)

4 pages. Excerpt: "What actions can employers take to prevent the transmission and minimize the impact of Swine Influenza in the workplace? It is recommended that employers take the following steps to pre-plan for an outbreak of Swine Influenza in their workplace: Obtain information on Swine Influenza from the local Department of Public Health (DPH), the CDC, or the employer's local health provider to determine whether there is a Swine Influenza risk in the community and/or within the particular groups in the workplace. Institute a program to require employees to comply with recognized personal hygiene practices, including: hand washing, cleaning of surfaces that may have been contaminated due to sneezing, coughing, or other contact, and avoiding spreading of disease by covering the mouth and nose when coughing or sneezing. Inform employees that the employer is committed to providing a safe and healthy workplace and that it wants to protect its employees against potential exposure to any disease whether or not work-related, including Swine Influenza, within the workplace." (Seyfarth Shaw LLP)


[Guidance Overview]
The Breach Notification Provisions of the HITECH Act

Excerpt: "The HITECH Act [provides new provisions for notifying affected individuals] about breaches, which apply to business associates and covered entities that access, maintain, retain, modify, record, store, destroy or otherwise hold, use or disclose unsecured PHI. A breach is defined as an 'unauthorized acquisition, access, use, or disclosure of protected health information which compromises the security or privacy of such information, except where an unauthorized person to whom such information is disclosed would not reasonably have been able to retain such information . . ." (Pepper Hamilton LLP)


[Guidance Overview]
Professor Zelinsky on ERISA 514(a) Preemption: the 9th Circuit Got It Wrong

Excerpt: "Edward Zelinsky (Cardozo) has just posted on SSRN his essay (forthcoming State Tax Notes) Golden Gate III, ERISA Preemption, and the San Francisco Health Care Security Ordinance. Here's the abstract: An exploration of the most recent decision of the U.S. Court of Appeals for the Ninth Circuit in Golden Gate Restaurant Association v. City and County of San Francisco (Golden Gate III) indicates that ERISA Section 514(a) preempts the San Francisco Health Care Security Ordinance. Two premises guide this exploration of Golden Gate III. First, employers' ongoing payments to health care administrators, such as insurance companies, constitute employee benefit 'plans' for ERISA purposes. Second, employers' contributions are central features of their employee plans." (Workplace Prof Blog)


[Guidance Overview]
HHS Proposes Encryption and Destruction as Exclusive Methods for Securing PHI

Excerpt: "As required under the HITECH Act, the Department of Health and Human Services issued guidance identifying the methodologies that will render protected health information (PHI) unusable, unreadable, or indecipherable to unauthorized individuals. HITECH's new breach notification requirements will not apply to PHI that has been so secured through either encryption or destruction - but HHS is seeking comments on whether PHI in limited data set form, or whether additional technologies and methodologies, should be added to the list." (Deloitte via BenefitsLink.com)


Many Companies Taking Action to Quell Swine Flu Fears
Excerpt: "Companies are taking precautions to limit the spread of swine flu -- and panic among their workforces -- by restricting employee travel, dusting off pandemic preparedness plans and providing e-mails, Web sites and phone calls with information provided by public health officials." (Workforce Management; free registration required)


Health Care Reform Resonates with Small Employers
Excerpt: "The most popular health care reform measure, favored by 78% of the small employers to make health insurance benefits more affordable for them, is a combination of government-sponsored purchasing pools to obtain premiums at bulk rates and tax credits. More than two-thirds (68%) would support establishing a market-based approach that gives employees a tax credit to buy health insurance on their own, encouraging the use of health savings accounts, and enacting tort reform for medical liability. More than half of small employers (53% each) would support the following . . . ." (Wolters Kluwer)


Pandemic Influenza Resources
Excerpt: "[Troutman Sanders has assembled this resource page as a service to] clients and the public to make critical information about this major public health threat more easily available." (Troutman Sanders LLP)


Hearing on Health Reform in the 21st Century: Employer Sponsored Insurance
April 29, 2009. Excerpt: "The hearing will focus on trends in employer-sponsored health insurance and strategies to strengthen and build upon job-based coverage." (U.S. House of Representatives Committee on Ways & Means)


Health Plans Cite Multiple Problems with Genetic Information Non-Discrimination Act, As Guidance Is Due from Three Federal Agencies
Excerpt: "Health plans are nervously awaiting word from the federal government about how much they will have to alter their wellness and disease management (DM) benefits to comply with provisions in the Genetic Information Non-discrimination Act (GINA). Guidance and/or regulations about GINA, which was enacted May 21, 2008, are due out at the end of May, but there is a widespread concern that this deadline will be missed. Some health plans also fear that new regulations could hamper legitimate uses of genetic information." (AISHealth.com)


Company Leverages HRAs to Help Employers and Their Workers Split the Savings from Medical Tourism
Excerpt: "A startup company is banking on its small network of elite overseas hospitals plus a unique employer health reimbursement arrangement (HRA)-linked health benefit to carve a niche for itself in the outbound medical tourism business. Satori World Medical, based in San Diego, recently launched its Health & Shared Wealth program, a patent-pending approach that enables employers to offer a 100% overseas medical travel benefit to their employees. Leveraging the significant savings Satori says it is offering for a range of traditional medical procedures performed at its network hospitals, employers can share with their employees a fixed dollar amount or a percentage of the savings realized by using the benefit. The predetermined savings amount is deposited in the employee's HRA account. The employer can then 're-invest' what it calculates to be the rest of the savings." (AISHealth.com)


Old Concept, Worksite Health Clinics, Gets New Lease in Battle to Curb Costs, Boost Productivity
Excerpt: "Worksite health clinics are enjoying a comeback, as employers look for ways to control health care costs and improve productivity. Once a relic of hazardous industrial workplaces, on-site clinics have re-emerged as a competitive tool for ensuring companies have a healthy, present and highly functioning workforce. This Perspective examines factors behind the growth of on-site clinics and covers recent Mercer survey findings about employers sponsoring such clinics. Topics addressed include implementation issues and ways to boost returns by integrating worksite clinics with other health programs." (Mercer LLC)


If Automakers Go Bankrupt, They Still Must Keep Paying Retirees' Health-Care Benefits for the Short Term
Excerpt: "The companies could ask the court for permission to drop payments, but automakers would have to try to negotiate changes with the United Auto Workers first, said Jeff Ferriell, a professor at Capital University Law School in Columbus. . . . In 2007, GM and Chrysler agreed to move retiree health-care costs from the companies to the union. The companies were supposed to create massive trusts to handle the costs, but they never funded them. So if GM or Chrysler were to file for Chapter 11, the health- care funds would be the companies' largest creditors." (Plain Dealer)



WorldatWork (Advert.)

WorldatWork publications in the BenefitsLink Bookstore (clickable image)

WorldatWork publications in the BenefitsLink Bookstore

WorldatWork, a not-for-profit professional association, is a leading publisher of compensation, benefits and total rewards information. With a portfolio of books, reports, survey briefs, booklets and online learning programs, WorldatWork creates, markets and distributes publications that are critical to improved organizational performance. WorldatWork has contributed to the education and development of business professionals worldwide since 1955.

Links to Items on Executive Comp, Benefits in General

[Guidance Overview]
Abbott Labs Accused of Benefits Interference in Class Action Suit

Excerpt: "Plaintiffs in a class action lawsuit allege Abbott Laboratories cheated workers out of their retirement benefits when the company spun off its hospital products business. The Chicago Sun-Times reports that the lawsuit stems from Abbott Laboratories' 2004 spinoff of its hospital products unit into a separate company, Hospira, which is also named in the suit. Workers claim they were assured by Abbott they would have a comparable benefits package at Hospira, but they did not. After the spinoff, Hospira dropped retiree health insurance benefits, and workers' Abbott pension benefits were frozen. Alleged wrongdoing by Abbott and Hospira cost former Abbott workers 'well in excess of $200 million,' contends plaintiffs' attorney Steve Sprenger, according to the Sun-Times." (PLANSPONSOR.com; free registration required)


Chrysler Bankrup.tcy Plan Is Announced
Excerpt: "Chrysler, the third-largest American auto company, will seek bankrup.tcy protection and enter an alliance with the Italian automaker Fiat, the White House announced Thursday. . . . On Wednesday, union members approved contract changes with Chrysler that will mean pay and benefit cuts, and their contract is expected to remain in effect during the bankrup.tcy." (The New York Times; free registration required)


OPM Announces New Governmentwide Telework Policy
Excerpt: "Office of Personnel Management Director John Berry on Wednesday announced a broad new telework plan for employees, in part to deal with growing concern over the spread of swine flu in the United States. Berry, who said President Obama and the Cabinet are committed to expanding telework, met with department secretaries this week to discuss the importance of the practice as a continuity of operations measure in the face of the global disease." (GovernmentExecutive.com)


Engaging the 21st Century Multi-Generational Workforce: Findings from the Age & Generations Study (PDF)
33 pages. Excerpt: "Major findings from this study include: Older workers are more likely to have higher levels of engagement than younger workers. Employees reporting better physical and mental health are more likely to have higher levels of engagement than those with poorer physical and mental health. Employees who are satisfied with the training and development opportunities available to them are more likely to have higher levels of engagement than those who are not satisfied. Employees working in teams that have a culture supportive of workplace flexibility are more likely to have higher levels of engagement. The investment that employers make in their benefits programs also contributes to the level of the engagement of their workforce, specifically, employers who offer health insurance for the family members of full-time employees, life insurance, and employer-contributions to the employees' defined contribution plans are more likely to have higher levels of engagement." (The Sloan Center on Aging & Work at Boston College)



Webcasts and Conferences

(Click to post your webcast or conference)

ftwilliam.com Administration Software 'Sneak Peek'
Nationwide on June 2, 2009
presented by ftwilliam.com


Press Releases

(Click to post your press release)

Hewitt to Offer Prudential's IncomeFlex Target Solution
Hewitt Associates LLC

PBGC Protects Pension Plans at Niagara Falls Memorial Medical Center
Pension Benefit Guaranty Corporation (PBGC)

ExpertPlan Hires EVP of Sales, Marketing and Business Development
ExpertPlan

U.S. Department of Labor Sues Former West Palm Beach, Florida, Tile and Flooring Distributor to Restore SIMPLE IRA Assets
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

U.S. Labor Department Sues to Appoint Independent Fiduciaries for Profit-sharing Plans Abandoned by Two Defunct Binghamton, New York, Companies
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Wells Fargo's Institutional Retirement to Acquire Comerica's DC and Recordkeeping Business
Wells Fargo

Fiduciary360 Names Kristina Fausti Director of Legal and Regulatory Affairs; Was Special Counsel at SEC
Fiduciary360 (fi360)

Video: Genworth Financial Reveals Best Places in America for Long Term Care
Genworth Financial, Inc.

NIRS Announces Retirement Academic Advisory Board
National Institute on Retirement Security

Benefit Express Reduces Client Health Care Costs by Auditing Dependents
Benefit Express



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