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May 13, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Employee Benefits Institute of America (EBIA) (Advert.)
EBIA's 11th ANNUAL ADVANCED CAFETERIA PLANS CONFERENCE Register now for EBIA's 11th Annual Advanced Cafeteria Plans Conference, which will be held in Seattle on July 8-10, 2009. Our speakers include outstanding employee benefits attorneys who are contributing authors on one or more EBIA manuals. Don't miss the optional pre-conference seminar: Advanced Briefing on New Federal Mandates! As in past years, we expect this annual conference to sell out, so be sure to register soon at www.ebia.com. |
[Guidance Overview]
IRS Ruling on Long-Term Care Coverage Provided Through an Annuity Contract (PDF)
2 pages. Excerpt: "On May 8, 2009, the Internal Revenue Service published its first ruling (PLR 200919011) considering a long-term care (LTC) rider to an annuity contract. . . . The private letter ruling (PLR) addresses many of the federal income tax issues associated with adding an LTC rider to an annuity contract. In particular, the PLR reaches a favorable conclusion on the question of whether any portion of an annuity contract's cash value can be used to fund LTC benefits paid under an LTC rider issued with such annuity contract." (Sutherland)
[Guidance Overview]
2009 H1N1 Flu: Tips for Plan Sponsors (PDF)
Excerpt: "This Bulletin focuses on 2009 H1N1 flu including both what plan sponsors can do to prepare themselves if 2009 H1N1 flu spreads to their workforce and what they can do to educate employees and allay their fears." (The Segal Group, Inc.)
[Guidance Overview]
HITECH Act HIPAA Guidance
Excerpt: "The FTC and HHS have issued the first set of HIPAA privacy/security guidance under the new HITECH Act requirements. The new guidance relates to the security breach notification requirement, which will go into effect in September 2009 (the exact date will depend on the date final regulations are issued). [The target page links to a four-page overview of HHS Guidance, a Breach Notification Chart, and a HITECH Act Timeline.]" (Groom Law Group)
[Guidance Overview]
The Effect of the Americans with Disabilities Act on Health and Disability Plans (PDF)
Excerpt: "As a general rule, neither ADA nor ERISA requires an employer to provide specific benefits. However, the broad language of ADA does prohibit 'disability-based' discrimination in employee benefits. A distinction based on disability is prohibited, but a distinction that applies equally to all employees is not. Questions about the 'disability-based distinction' often arise for both health plans and disability plans. The issue created by ADAAA is whether an employer that provides health or disability benefits has discriminated against an employee if it does not provide benefits, and therefore denies a claim, for a condition that now qualifies as a disability under ADA." (Miller Chevalier)
New Government Health Plan Will Significantly Increase Cost Shift to Private Sector Payers (PDF)
7 pages. Excerpt: "Creating a new government health insurance plan that uses Medicare provider reimbursement levels and is only open to individuals, the self-employed, and small businesses will shift an additional $43.0 billion per year in costs to private payers, and increase the current amount of cost shifting from $57.3 billion to $100.3 billion per year, or 75.0 percent. If all employers are allowed to participate in the government health plan, the additional cost shifting to private payers will be $124.5 billion per year." (Applied Economic Strategies, LLC via HR Policy Association)
Senate Committee Roundtable Discussion on "Financing Comprehensive Health Care Reform"
May 12, 2009. Excerpt: "[Opening Remarks of Senator Max Baucus (D-Mont) Regarding Financing of Health Care Reform:] The novelist Edith Wharton said: 'The only way not to think about money is to have a great deal of it.' Today, we host the third of our three roundtable discussions on health care reform. This one thinks about money. With any luck, we'll have a great deal of it. This roundtable discussion will preview many of the revenue and savings options that the Committee will consider at a walk-through session next week, heading to our markup next month." (U.S. Senate Committee on Finance)
The Tab for Public Employee Retiree Health Care Benefits Is Spiraling Out of Control
Excerpt: "States pay the costs of retiree health care, which range from full coverage for life to more modest benefits, out of their annual budgets. And the tab has been spiraling out of control. In 2008, employer health insurance premiums increased by 5%, or twice the rate of inflation. 'Governments have piled up huge unfunded health care liabilities, the dimensions of which are just now being realized,' writes Lance Weiss in a report released in 2006 by Deloitte titled 'Paying for Tomorrow.' 'Estimates of unfunded liabilities associated with retiree health benefit plans represent a fiscal crisis for many states and municipalities.'" (Cable News Network)
Public Sees Value in Electronic Medical Records But Is Skeptical of Cost Savings Potential
Excerpt: "The great majority of adult residents of the United States agree that it is important that the U.S. health care system adopt, and that medical providers use, electronic medical records (EMRs). However, they fear the security of those records, and doubt that they will yield any cost savings. In addition, Americans do not trust government or insurers to identify the best medical treatments. These are among the findings of a recent study of American consumers conducted for National Public Radio, the Kaiser Family Foundation, and the Harvard School of Public Health." (Wolters Kluwer)
Reporting of COBRA Subsidy
Excerpt: "'Joseph Tiberio, IRS Program Manager, Employment Tax Policy, has confirmed that the IRS will not require COBRA subsidy payments to be reported on Form W-2 or Form 1099.'" (Attorney B. Janell Grenier via Benefitsblog.com)
Seventh Circuit Discusses 'Independent Medical Examinations' in a Footnote to Ruling
Excerpt: "The Seventh Circuit did not feel that the new Glenn standard made a difference in the outcome of this long-term disability case--Jenkins v. Price Waterhouse Long Term Disability Plan. However, the court did, in a footnote, issue a warning about 'independent medical examinations' . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)
Ninth Circuit Addresses Retiree Claims Under Bankrupt Employer's Self-Funded Medical Plan
Excerpt: "With bankrup.tcy filings soaring during this economic downturn, it is always of great interest to benefits practitioners to learn how bankrup.tcy courts are dealing with the unmet employee benefit obligations that get thrown in the mix. The Ninth Circuit in the case of Consolidated Freightways Corp. v. Aetna, Inc. dealt a blow to retirees (and the insurer who had advanced amounts in payment of retiree claims) by ruling that the retirees' claims for benefits under a self-funded retiree medical portion of the employer's health plan were not entitled to 'priority' in determining the number of employees under Section 507(a)(5) of the Bankrup.tcy Code, even though active employees' claims were so entitled." (Attorney B. Janell Grenier via Benefitsblog.com)
DOL Tentatively Denies Coca-Cola Retiree Health Care Benefit Funding Proposal
Excerpt: "The Coca-Cola Co. will continue to seek regulatory approval of its innovative retiree health care benefits funding proposal after a tentative Labor Department ruling denying approval of the transaction. In January, Coca-Cola filed with the Labor Department an application detailing what potentially could be a groundbreaking approach to fund retiree health care benefits. Under its plan, the company would use assets now held in a voluntary employees' beneficiary association to purchase medical stop-loss policies from Prudential Insurance Co. of America, which would pay claims over the expected lifetimes of about 4,000 retirees and dependents." (Business Insurance)
State of Washington to Delay Paid Parental Leave Implementation
Excerpt: "Washington state's paid parental leave law won't take effect this October as originally scheduled since lawmakers have postponed the effective date for three years (SB 6158). The law will provide employees with partial wages of up to $250 per week while taking up to five weeks of leave from work to bond with a new child. In January 2008, a legislative task force on funding options recommended state funding without any initial employer financing. However, lawmakers have yet to determine a funding mechanism." (Mercer LLC)
2009 Medicare Trustees Report
Excerpt: "The Boards of Trustees for Medicare . . . report annually to the Congress on the financial operations and actuarial status of the program. Beginning in 2002, there is one combined report discussing both the Hospital Insurance program (Medicare Part A) and the Supplementary Medical Insurance program (Medicare Part B and Prescription Drug Coverage). . . . The Boards of Trustees issued their most recent report on May 12, 2009." (Boards of Trustees of the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund via Centers for Medicare & Medicaid Services)
House Gets New Version of LTC Bill
Excerpt: "Congress now is considering a second version of a major long term care insurance bill. H.R. 2096, the Long Term Care Affordability and Security Act, would allow long term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts. Plan participants could pay for LTC insurance with pre-tax dollars. The bill also would create new federal LTC insurance consumer protections based on provisions in a model developed by the National Association of Insurance Commissioners, Kansas City, Mo. H.R. 2096 was introduced by Reps. Earl Pomeroy, D-N.D., Allyson Schwartz, D-Pa., Charles Boustany, R-La., and Ginny Brown-Waite, R-Fla." (National Underwriter Life & Health)
How Do Medicare and Employer Coverage Compare in Meeting Enrollees' Needs?
Excerpt: "One key issue in health reform concerns the relative roles of coverage offered through private insurance and public programs. This paper compares the experiences of aged Medicare beneficiaries with those of people under age sixty-five who have private employer coverage. Compared with the employer-coverage group, people in the Medicare group report fewer problems obtaining medical care, less financial hardship due to medical bills, and higher overall satisfaction with their coverage. Although access and bill payment problems increased across the board from 2001 to 2007, the gap between Medicare and private employer coverage widened." (Health Affairs)
EmployeeBenefitsJobs.com (Advert.)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Revision of Self-Correction Procedures for Nonqualified Deferred Compensation Plans (PDF)
4 pages. Excerpt: "These correction procedures are available to plan sponsors of and participants in nonqualified defined benefit or defined contribution plans that provide for the deferral of compensation (section 409A plans), including section 457(f) plans." (Prudential Retirement)
The 2009 Social Security Trustees Report
Excerpt: "The 2009 OASDI Trustees Report, officially called 'The 2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds,' presents the current and projected financial status of the trust funds." (U.S. Social Security Administration)
A Summary of the 2009 Annual Reports from the Social Security and Medicare Boards of Trustees
Excerpt: "Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs. This message summarizes our 2009 Annual Reports." (U.S. Social Security Administration)
Recession Drains Social Security and Medicare
Excerpt: "[The administration said that] the Medicare fund that pays hospital bills for older Americans is expected to run out of money in 2017, two years sooner than projected last year. The Social Security trust fund will be exhausted in 2037, four years earlier than predicted, it said." (The New York Times; free registration required)
Milliman's Monthly Benefit News and Developments, May 2009 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)
Why Are Older Workers at Greater Risk of Displacement?
Excerpt: "This brief analyzes changes in the displacement of older and prime-age workers since the mid-1990s and the effect of three factors - tenure, educational attainment, and employment in manufacturing - identified as having a significant effect on displacement risk. The results show that all three factors contributed to the rising dislocation risk older workers face and their rising risk vis-å-vis prime-age workers." (Center for Retirement Research at Boston College)
Webcasts and Conferences
(Click to post your webcast or conference)Compliance Audits: The Biggest Mistakes Commonly Found Seminar
in Pennsylvania on June 11, 2009
presented by Trion
Financing Demographic Shifts: The Future of Retirement in a Rapidly Aging World Webcast
Nationwide on May 20, 2009
presented by Mercer
Four (4) Part Webcast Series: Defined Benefit Plan Administration under PPA: Understanding PPA and How to Communicate to Plan Sponsors
Nationwide on May 27, 2009
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Fourth Annual Benefits Conference: Keys of Innovation
in Minnesota on June 17, 2009
presented by Employers Association, Inc.
Improving 401(k) Plan Document Generation Efficiencies
Nationwide on May 21, 2009
presented by ftwilliam.com
IRA Webinars Special Pre-Summer Pricing
Nationwide on May 13, 2009
presented by Collin W. Fritz & Associates, Ltd.
Mental Health Parity - Clinical and Administrative Impacts
in Florida on June 18, 2009
presented by International Society of Certified Employee Benefit Specialists - Orlando Chapter
SPDs for Health and Welfare Plans: A Step-by-Step Guide to Preparation and Distribution
Nationwide on June 11, 2009
presented by EBIA / Thomson Reuters
The American Recovery and Reinvestment Act of 2009
in California on June 4, 2009
presented by Executive Benefits Design Group
Press Releases
(Click to post your press release)PBGC Negotiates Agreement to Preserve Wyoming Valley Health Care Pension Plan
Pension Benefit Guaranty Corporation (PBGC)
Statement of U.S. Secretary of Labor Hilda L. Solis Following Social Security and Medicare Board of Trustees Meeting
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Six Months Later: Effects of the Financial Crisis Shake Employers into Action
International Foundation of Employee Benefit Plans
Actuaries: Trustees’ Reports Warn of Looming Financial Challenges Facing Retirement Programs
American Academy of Actuaries
Analysis Shows New Government Health Plan Likely to Lead to Erosion of Employer-Based Coverage
HR Policy Association
CPI Qualified Plan Consultants, Inc. and Gatekeeper Administration and Consulting, LLC Announce Merger of Operations
CPI Qualified Plan Consultants, Inc.
Economic Slump Pushing Public Sector Employees to Delay Retirement
Center for State and Local Government Excellence
Employee Benefits Jobs
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