Health & Welfare Plans Newsletter |
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| June 8, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
Towers Perrin Monthly Health & Welfare Regulatory Round-Up, May 2009 (PDF)
Towers Perrin Monthly Health & Welfare Regulatory Round-Up, May 200911 pages. Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large employers. Developments are sorted according to federal legislative developments, federal regulatory guidance, other developments (e.g., significant litigation, studies, select state law developments)." (Towers Perrin)
[Guidance Overview]
Minnesota Enacts COBRA Subsidy and Notice Requirement
Excerpt: "Minnesota has enacted a new law to provide a state subsidy to some former employees eligible for the federal COBRA subsidy. The new law is an attempt to avoid the cost of these former employees applying for health insurance under a state program. This new law is significant to employers because it requires employers with employees in Minnesota to provide those employees with notice of the Minnesota subsidy." (Dorsey & Whitney LLP)
[Guidance Overview]
Colorado Employers Must Cope with New Employee Leave Mandate
Excerpt: "A new Colorado law requires employers to provide nonsupervisory employees with up to 18 hours of annual unpaid leave time per academic year to participate in parent-teacher conferences and other school-related meetings. An advisory memo from the law firm Littler Mendelson said full-time employees are entitled to up to 18 hours of unpaid leave in the academic year or up to six hours of leave in a one-month period. Part-time employees are entitled to a prorated amount of leave. The Parental Involvement in K-12 Education Act takes effect in August 2009." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
Retirees Can Proceed With Claim That Employer Violated ERISA in Terminating Their Health Benefits
Excerpt: "EBIA Comment: The practical effect of the Ninth Circuit's decision in this case is to open the courthouse doors to the retirees to continue pursuing their surviving claims. When the substance of those claims is considered, the issue of vesting may once again be front and center. Because welfare plans (unlike pension plans) are not subject to ERISA's statutory vesting requirement, plan sponsors are generally free to amend or terminate ERISA welfare plans. Through plan language, however, a plan sponsor may voluntarily give up its right to amend or terminate a plan benefit, in which case benefits may vest and become protected from amendment or termination. Thus, the outcome of retiree health benefits cases often depends on plan language (including the language of formal plan documents, SPDs, other participant communications, and -- as in this case -- a benefits booklet and applicable CBAs)." (Employee Benefits Institute of America)
Restaurant Owners' Group to Ask Supreme Court to Review San Francisco Health Care Spending Law
Excerpt: "A San Francisco-area restaurant trade association intends to file a petition next week with the U.S. Supreme Court asking it to review a 2008 federal appeals court decision upholding the legality of San Francisco's health care spending law." (Workforce Management; free registration required)
Finding Resources for Health Reform and Bending the Health Care Cost Curve
Excerpt: "In addition to the initial investments enacted in the American Recovery and Reinvestment Act, the president has included a $634 billion health reform reserve fund in his 2010 budget as a downpayment on health reform, leaving the legislative details to Congress. Comprehensive reform will likely require an investment of $1 trillion or more over the 2010-19 period to achieve coverage for all and implement critical system reforms. This report examines policy options that could slow growth in health spending, improve health outcomes, and provide additional revenues to finance comprehensive reform. It also illustrates how widely estimates of policy options can vary based on underlying assumptions. The rich menu of options presented here, along with impact estimates, should help policy leaders identify the resources required to make health coverage for all and improved health system performance a reality." (The Commonwealth Fund)
Taxing Health Benefits Could Be Used to Pay for Expanded Coverage, Drive Out Unnecessary Care
Excerpt: "Economists say taxing health benefits not only could raise billions per year for health care reform efforts, but also could make the system run better, NPR and KHN report. The reasoning: 'When you tax an activity, you get less of it. When you subsidize an activity, you get more. 'We're subsidizing health insurance,' said Katherine Baicker, an economist at Harvard's School of Public Health. 'So we're getting more and more and more health care consumed.'' Discounts skew decision making, NPR reports, and getting rid of the tax breaks for employer-provided health benefits could help rein in unnecessary treatments while boosting enrollment." (Kaiser Family Foundation)
As White House Sets Aggressive Timeline for Reform, Financing and Public Plan Complicate Progress
Excerpt: "This week President Obama sent a letter to Senate Finance Committee Chairman Max Baucus (D-MT) and HELP Committee Chairman Edward Kennedy (D-MA) saying that he would like a bill on his desk by October; however, barriers have begun emerging." (HR Policy Association)
The Economic Case for Health Care Reform (PDF)
56 pages. Excerpt: "The Council of Economic Advisers (CEA) has undertaken a comprehensive analysis of the economic impacts of health care reform. The report provides an overview of current economic impacts of health care in the United States and a forecast of where we are headed in the absence of reform; an analysis of inefficiencies and market failures in the current health care system; a discussion of the key components of health care reform; and an analysis of the economic effects of slowing health care cost growth and expanding coverage. The findings in the report point to large economic impacts of genuine health care reform . . . ." (Executive Office of the President, Council of Economic Advisers)
Health Care Reform Update
Excerpt: "This is the first in a series of regular health reform updates from Spencer's Benefits Reports. Included are brief summaries of actions taken by the federal government, recent reports and studies on health reform, policy statements by major stakeholders, and other recent health reform activity." (Wolters Kluwer)
House Passes Paid Parental Leave Bill for Federal Employees
Excerpt: "By a vote of 258 to 154, the House of Representatives has passed the Paid Parental Leave Bill for the second time in two years, FedSmith.com reports. The new bill states that its purpose is 'To provide that 4 of the 12 weeks of parental leave made available to a Federal employee shall be paid leave....,' according to the news report. The bill provides that the parental leave is not to be considered annual or vacation leave, and it does not accumulate for future use." (PLANSPONSOR.com; free registration required)
Medicare Secondary Payer User Guide Updated With Guidance for Responsible Reporting Entities and Group Health Plans
Excerpt: "EBIA Comment: ['Responsible reporting entities'] will likely welcome any assistance to deal with the thorny problem of collecting [Medicare Health Insurance Claim Number]/SSNs. It remains to be seen, of course, whether the new strategy will result in a higher level of cooperation from subscribers and their dependents. Collecting information about dependents is particularly difficult since information about them is harder to obtain and often less accurate than for subscribers. " (Employee Benefits Institute of America)
State Coverage Model No Help for Uneasy Insurance Industry
Excerpt: "In reasserting his support last week for a new government health plan for the uninsured, President Obama stoked the fears of private insurers that they would not be able to compete with a Medicare-like option and might gradually be priced out of existence. The Obama administration has sought to reassure the industry, with its substantial lobbying might, by pointing to the three dozen states that offer their employees a choice between government-backed insurance options and a menu of commercial policies." (The New York Times; free registration required)
[Opinion]
Health Reform Taking Shape
Excerpt: "The administration and Congress are working at a feverish pace to craft a new health system -- work that may be completed before the August recess. The possibilities are complex and varied, but the mission may be gearing up for a successful conclusion." (Dallas Salisbury via Human Resource Executive Online)
[Opinion]
Letter to Senate Finance Committee Discussing Views on Health Care Reform Financing Options (PDF)
5 pages. Excerpt: "The evidence of the last five years shows that HSAs and other consumer-driven health plans are reducing or eliminating premium increases, providing health insurance for previously uninsured individuals, and reducing over utilization of unnecessary health care services. The result has been more increased personal responsibility and higher engagement in maintaining health and seeking the best value for the health care dollar being spent, all without having a negative effect on health outcomes. Implementing the suggested policy changes to the HSA would simply cripple one of the few health care reforms that are accomplishing the President's stated goals for health care reform." (Council for Affordable Health Insurance)
[Opinion]
Paying for Universal Health Coverage
Excerpt: "For Congress and the administration to keep the promise of comprehensive health care reform, they will have to find the political will to pay for universal coverage and other investments that are needed right away but will not produce quick savings. The cost could reach $1.5 trillion over the next decade. President Obama, who had already proposed some $634 billion in new taxes and spending cuts, endorsed additional ideas last week. But Congressional Democrats will almost certainly need to come up with a lot more money -- and that is likely to mean new taxes." (The New York Times; free registration required)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]State of Wisconsin Wins Same-S.ex Benefit Denial Challenge
Excerpt: "While the state of Wisconsin won a victory in an American Civil Liberties Union (ACLU) legal battle over benefits for same-s.ex partners of state employees, a state judge used his ruling to assert that the practice of denying the same-s.ex benefits is unconstitutional. Dane County Circuit Judge David Flanagan said despite his belief that the state benefits practice is not constitutional, he was nonetheless bound by a 1992 state appellate decision upholding their validity." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
Monthly Regulatory Round-Up on Executive Compensation, May 2009 (PDF)
Monthly Regulatory Round-Up on Executive Compensation, May 2009 3 pages. Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large employers. Developments are sorted according to federal legislative developments, federal regulatory guidance, other developments (e.g., significant litigation, studies, select state law developments)." (Towers Perrin)
[Guidance Overview]
IRS Says Treasury's Acquisition of Equity Under TARP Not a Change of Control for Section 409A (PDF)
Excerpt: "The IRS has issued Notice 2009-49, which clarifies that for purposes of Internal Revenue Code Section 409A, an acquisition by the Treasury Department of preferred stock, common stock, warrants or other equity rights in a financial institution or other entity under the Emergency Economic Stabilization Act of 2008 (a 'Treasury EESA Equity Acquisition Transaction') is not considered a change in ownership or effective control, or a change in ownership of a substantial portion of the assets of the corporation. Therefore, it is not a permissible payment event under Section 409A." (Buck Consultants)
Gliche in the 409A Regulations Created by EESA
Excerpt: "The Treasury could not have foreseen that it would have to carve out an exception under the 409A change in control rules for the federal government acquiring interests in financial institutions. Hence the issuance of Notice 2009-49 announcing future changes to the 409A regulations . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)
New Hampshire Employers Have Time to Prepare for Same-S.ex Marriage Issues
Excerpt: "Employers in New Hampshire have a good six months to adjust their benefit plans to accommodate the new law Gov. John Lynch (D) signed on June 3 allowing same-s.ex marriage in that state. The law takes effect on Jan. 1, 2010. This makes New Hampshire the sixth state in which same-s.ex marriage is legal, joining Massachusetts, Connecticut, Iowa, Maine and Vermont." (Thompson Publishing Group)
Interesting Preemption Case Cites Glenn
Excerpt: "Don't miss this Sixth Circuit case--American Council of Life Insurers v. Ross [linked on target page]--holding that ERISA does not preempt a Michigan state law which prohibits insurers from including the Firestone discretionary language in insurance policies. The case is particularly noteworthy because the court cites the Glenn case in support of its decision that the state law should not be preempted . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)
Arizona Lawmakers Could Kill Domestic Partner Benefits Rule
Excerpt: "Arizona state lawmakers are moving to strip the domestic partners of state and university employees of the health insurance coverage they gained just a year ago, according to a news report. The Arizona Daily Star reported that a provision in the state budget would legally define 'dependents' of state employees who are entitled to coverage as a spouse or a child younger than 19 -- or younger than 23 if a full-time student." (PLANSPONSOR.com; free registration required)
Webcasts and Conferences
"What You Don't Know About HCEs and Key Employees" Archived Web SeminarNationwide on June 6, 2009
presented by SunGard Relius
Getting Ready for the 2009 Form 5500 and Electronic Filing Webcast
Nationwide on June 11, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Health Benefits Laws: Compliance Assistance Seminar
in Ohio on July 15, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Employee Benefits Jobs
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