Health & Welfare Plans Newsletter |
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| August 10, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
University Conference Services (Advert.)
What’s Your Next Move? Managing your organization’s health and welfare plans can seem like a game of chess. You always want to be one move ahead of your "opponent"—cost increases that outpace inflation, employees who ignore the principles of good nutrition and healthy living, or regulators who impose ever more complicated rules. The Las Vegas Health and Welfare Plan Management for Mid-Sized Employers conference, September 13–16, is an unmatched educational opportunity to evaluate your health care programs and create a winning strategy for keeping costs under control. |
[Guidance Overview]
Mandatory Wellness Program Requirement Trumps Employment Rights, According to Court
Excerpt: "In a victory for employers with mandatory wellness initiatives, a Massachusetts federal judge has dismissed a lawsuit by an employee who had started work, but whose employment, contingent on successful completion of a nicotine test, was terminated after he tested positive for nicotine. The decision, Rodrigues v. EG Systems, Inc. d/b/a Scotts LawnService, Civil No. 07-10104-GAO (D. Mass., Jul. 23, 2009), may have far-reaching implications for employers that want to increase the overall health and productivity of their workforce, and potentially lower health care costs, by having a non-smoking workforce." (Littler Mendelson P.C.)
[Guidance Overview]
New Academic Leave Law in Nevada
Excerpt: "Effective August 15, 2009, Nevada employers will have to comply with expanded academic leave provisions which Governor Jim Gibbons recently signed into law. Although Nevada already has a statute that grants leave to parents, guardians, or custodians of a child to attend certain school-related events and emergencies, the new law enhances and clarifies the protections afforded for participation in these and other academic events." (Holland & Hart LLP)
[Guidance Overview]
9th Circuit Affirms Reimbursement of Benefits for Fraudulent Beneficiary
Excerpt: "The 9th U.S. Circuit Court of Appeals has affirmed a lower court's decision that a health plan administrator should be reimbursed for benefits it paid for a woman who was falsely represented as a participant's legal spouse. EBIA reports that the appellate court agreed with the U.S. District Court for the Western District of Washington that the $70,000 reimbursement is considered equitable relief under the Employee Retirement Income Security Act (ERISA). The courts rejected Ralph W. Cutter's argument that because the benefits were not paid directly to him and were not in his possession, the plan could not seek reimbursement from him." (PLANSPONSOR.com; free registration required)
GAO Letter: The Budgetary Effects of Expanding Governmental Support for Preventive Care and Wellness Services (PDF)
7 pages. Excerpt: "This letter responds to the question you asked at a July 16, 2009, committee markup concerning the Congressional Budget Office's (CBO's) analysis of the budgetary effects of proposals to expand governmental support for preventive medical care and wellness services. Specifically, you asked whether the agency's scoring methods reflect potential reductions in federal costs from improvements in health that might result from expanded support for those activities." (U.S. Congressional Budget Office)
U.S. Postal Service Looks for Legislative Relief from Funding of Retiree Health Liability
Excerpt: "Separate bills are currently before the House and the Senate that would provide temporary relief and are nearing full votes, [Postmaster General] Potter said during a conference call with reporters . . . . 'We are working hard with the administration, the Senate and the House to get legislation passed to give us relief from our retiree health benefit payment,' he said. 'I am fairly confident that legislation action will be taken before the end of the year,' he said. However, if it isn't, Potter said postal delivery service will not be interrupted." (Haymarket Media)
A Primer on the Details of Health Care Reform
Excerpt: "[Both Republicans and Democrats hope] to win ground by boiling down one of the most complex policy discussions in history into digestible nuggets. For beachside viewers who might be more interested in iced-tea service than fee-for-service, here is a guide to the main fight points." (The New York Times; free registration required)
Workplace Health Incentives Pay Off for Employers
Excerpt: "A new study by a Vienna, Virginia, health care consultant found that 83% of employers who have measured the effectiveness of wellness incentives in their workplace health plans found a better than dollar-for-dollar return on their investment." (PLANSPONSOR.com; free registration required)
Wal-Mart Expands Rx Benefit to Employers, Targets Waste in Drug Supply Chain
Excerpt: "Wal-Mart Stores, Inc. is rolling out a pharmacy benefit program to employers and health plans that it says will greatly simplify the drug-pricing system and eliminate up to 20% of the waste in the current pharma.ceutical supply chain. Some industry observers say the new program could pressure pharmacy benefit managers (PBMs) on pricing, but others tell DBN that the jury is still out on whether the program will shake up the pharmacy benefits industry. And at least one large PBM appears to be shrugging off the competitive threat." (AISHealth.com)
New Bill Seeks to Cover Second Opinions Under ERISA
Excerpt: "Rep. Susan Davis (D-Calif.) recently introduced a bill in the U.S. House of Representatives that would add mandatory coverage for second opinions on medical treatments under several laws, including the Employee Retirement Income Security Act (ERISA). The Right to a Second Medical Opinion Act of 2009 would require employers to cover at least three sessions with an approved physician for the same cost to employees as a comparable visit with a primary participating provider." (California Employment Law via National Institute of Business Management)
Tracking Prescriptions: Big Business
Excerpt: "[I]n fact, prescriptions, and all the information on them -- including not only the name and dosage of the drug and the name and address of the doctor, but also the patient's address and Social Security number -- are a commodity bought and sold in a murky marketplace, often without the patients' knowledge or permission." (The New York Times; free registration required)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Nevada's New Domestic Partnership Law: How It Impacts Employer Policies and Procedures
Excerpt: "The law gives domestic partners, g.ay or straight, largely the same rights as those already available to married couples. Domestic partners who register their relationship with the Secretary of State will be entitled to receive benefits such as hospital visitation, funeral planning and community rights. Despite the assumption that many employers may have that they are now required to provide benefits to domestic partners, the new law may give employers a choice. It states that the Act does 'not require a public or private employer in this State to provide health care benefits to or for the domestic partner of an officer or employee.' The Act goes on to state that it 'does not prohibit any public or private employer from voluntarily providing health care benefits to or for the domestic partner of an officer or employee upon such terms and conditions as the affected parties may deem appropriate.'" (Holland & Hart LLP)
[Guidance Overview]
Employees Using Vested Stock Options as Collateral for Writing Exchange-Listed Calls
Excerpt: "This will follow-up on my July 1 blog titled 'Stock Options Opened for 'Call Writing'' issue. On June 17, 2009, the Securities and Exchange Commission (SEC) approved a rule that would permit a public company to allow its employees to use vested stock options as collateral for writing exchange-listed calls. (SEC Release No. 34-60127) This blog will discuss: 1. Why did the SEC eliminate the margin requirements when an employee utilizes his or her employee stock option as collateral for a call option? 2. Why would an employee sell a call option when the employee owns a vested employee stock option? 3. Whether a company should allow its employees to sell a call option in the company's stock." (Michael Melbinger via Winston & Strawn LLP)
[Guidance Overview]
SEC's Proposed New Proxy Reporting Rules
Excerpt: "With corporate executive compensation practices facing increased public scrutiny, the SEC has responded with new proposed rules on proxy reporting, designed to improve transparency. Here we review the proposed rules and their implications for plan sponsors." (JPMorgan Chase & Co.)
[Guidance Overview]
Proposed SEC Rule Amendments to Executive Compensation and Corporate Governance Disclosure
Excerpt: "The SEC has indicated that if the proposed amendments are adopted, they will likely be effective for the 2010 proxy season. If this is the case, companies will have a relatively short time after adoption of the new rules to incorporate the changes into their drafting process for their 2010 proxy statements. In order to implement the potential changes in a timely manner, companies should consider taking the following steps . . . ." (Haynes and Boone LLP)
[Guidance Overview]
International Financial Reporting Standard 2 and Its Impact on U.S. Equity Compensation
Excerpt: "In the compensation arena, International Financial Reporting Standard 2 (IFRS2) impacts equity compensation plans. On August 27, 2008, the SEC approved a proposed 'roadmap' that could lead to the use of these international standards by US companies beginning in 2014, depending on the size of the company. While this date may be years away, compensation professionals nevertheless need to understand how current awards may be treated if IFRS2 becomes applicable." (Hay Group)
Corporate Boards Scrutinizing Executive Perks More Than Ever Before
Excerpt: "Hay Group's sample of 200 companies (all with revenue in excess of $5 billion) examined for The Wall Street Journal/Hay Group CEO Compensation Study (WSJ 200 companies) provides a reasonable study group for looking at the current prevalence of executive perquisites, how the landscape has changed over the last year, and what changes are likely in the future." (Hay Group)
Washington's New Attempt to Rein in Executive Pay
Excerpt: "THE executive compensation bill that the House passed just before the August recess was advertised as the first in a series of government safeguards to prevent risky, me-first maneuverings around executive pay in corporate America. It's supposed to correct wrongheaded structures that generated untold millions for aggressive managers and monster losses for unwitting taxpayers. But an examination of the bill's fine print raises questions about whether it will, if supported by the Senate and then enacted, have the desired effect." (The New York Times; free registration required)
[Opinion]
Philadelphia Public Workers' Health and Pension Plans Are in Line with Standard Costs and Managed Competently
Excerpt: "An old adage holds that nothing is so absurd that people won't believe it if it's repeated enough. Sadly, it's proven true every time Philadelphia city workers' contracts come up for negotiation. Every few years, the twin misconceptions that union employee benefits are too generous and are wastefully administered are repeated and repeated until people start believing them. But a closer look at the benefits provided and the trust funds that administer them shows just the opposite. The benefits provided to unionized city employees are carefully administered by independently established common-law trusts, also known as funds, that are legally and financially separate from the unions. They are run by city and union trustees whose fiduciary responsibility is exclusively to the employees and their families - not to the unions or the city. No money is ever transferred from the funds to any union entity." (The Philadelphia Inquirer)
Press Releases
401(k) Plan Sponsors Are Reducing or Eliminating Employer Contributions, but Overall Benefits Budgets Are Increasing, Says Diversified Investment Advisors SurveyDiversified Investment Advisors
Funded Status of Pension Plans Suffers as Impact of Credit Spreads Continues to Eclipse Benefit of Equity Improvements
Mercer
(Click to post your press release)
Employee Benefits Jobs
Retirement Plan Administratorfor Noble-Davis Consulting, Inc
in OH
Pension Administrator - DC/401(k)
for Stephen H. Rosen & Associates, Inc.
in NJ
Manager of 401(k) Plans
for Nationwide healthcare company located in North Houston
in TX
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