Health & Welfare Plans Newsletter |
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| August 11, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
Group Health Plan Eligibility, COBRA and the Importance of Clear Leave of Absence Policies
Excerpt: "An employee's leave of absence can raise a number of practical and legal issues. That is why employers need to include clear leave of absence policies in employee handbooks and in employee benefit plans. A recent federal court decision illustrates how important this is in the group health plan and COBRA context. In Jennings v. D.F. Crane Constr. Corp., 2009 U.S. Dist. LEXIS 41794 (W.D. Ky. Apr. 10, 2009), Mr. Jennings was participating in the company's health plan. Mr. Jennings took a leave of absence, and while he was on leave the company terminated his employment. The dispute boiled down to when Jennings lost his coverage under the company's health plan (i.e., when the COBRA qualifying event occurred)." (Poyner Spruill LLP)
[Guidance Overview]
New Audit Guide for Medicare Advantage and Part D Programs Released for Comment
Excerpt: "In its proposed collection and comment request published in the Federal Register on Friday, July 31, 2009, CMS announced the merger of the existing Part C and Part D audit guides into a single Medicare Part C and Part D Universal Audit Guide. Currently available in draft form, the universal audit guide reflects streamlined data elements, uniform language, and omits duplicative data elements as well as previously deleted items. The information collection and comment request also includes a draft audit confirmation letter; minimum documentation requirements for sample case files; and the accompanying 'universe request' for data for Medicare Advantage and Part D Plan audits." (McDermott Will & Emery)
[Guidance Overview]
HHS Delegates Authority for Administration and Enforcement of HIPAA Security Rule to Office for Civil Rights
Excerpt: "EBIA Comment: Given that administration and enforcement of the privacy and security rules are naturally intertwined, the shift to consolidate authority under a single office within HHS makes practical sense. Whether this signals an adoption of a stricter attitude or approach toward enforcement remains to be seen. It is worth noting that the American Recovery and Reinvestment Act of 2009 (ARRA) mandated improved enforcement of the privacy and security rules . . . ." (Employee Benefits Institute of America)
[Guidance Overview]
IRS Discussion on Whether Various Over-the-Counter Items Are Medical Care Expenses
Excerpt: "EBIA Comment: This information letter is noteworthy for its detail and provides insights into a number of difficult expenses, many of which have not previously been addressed by the IRS. Those who work with health FSAs and HRAs will want to familiarize themselves with the letter and the analysis it contains. [See http://www.ebia.com/files/PDFs/OTCltr.pdf.]" (Employee Benefits Institute of America)
Low Life Expectancy in the United States: Is the Health Care System at Fault?
Excerpt: "We conclude that the low longevity ranking of the United States is not likely to be a result of a poorly functioning health care system." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)
Tax on High-End Health Plans Threatens Wider Group
Excerpt: "The White House cited the health benefits enjoyed by top executives of Goldman Sachs Group Inc. as an example of a so-called Cadillac health plan. The Wall Street firm pays roughly $40,000 in annual premiums for each executive's family. But the proposal being weighed by the Senate Finance Committee would tax health plans that cost much less, setting the bar perhaps as low as $25,000 a year for a family plan. That is about twice the cost of the average family plan and would affect only a tiny fraction of U.S. workers, according to the Kaiser Family Foundation. But if lawmakers don't allow the threshold to be adjusted annually to reflect annual price increases, the proposed tax would eventually hit a much larger number of people." (The Wall Street Journal)
Can a Conservative Small Business Lobby Unite with Liberals to Save the U.S. Health-Care System?
Excerpt: "Once more, health-care reform is shaping up to be the most important -- and controversial -- domestic policy initiative of a young Democratic president's new administration. Once more, the [National Federation of Independent Business] is in the thick of the debate. But this time the organization says it wants to play a constructive, rather than obstructive, role." (CNNMoney.com)
Audio and Text: Lawmakers Consider Employer Benefits Tax
Excerpt: "Congress is weighing the idea of taxing the costliest employer-provided health insurance plans as a way to fund health care reform. Currently, employees who receive health insurance through their companies pay no tax on their benefits. Two health policy experts answer your questions on the issue." (NewsHour via National Public Radio)
Utah Health Exchange, Web Site Where Individuals and Businesses Can Compare and Buy Health Plans, Goes Live August 19
Excerpt: "A cornerstone of the state's health reform plans, the Utah Health Exchange marks the beginning of a defined contribution market, portable health coverage -- and giving Utahns more of a say in their health care. Only the second health insurance exchange to be developed in the country -- Massachusetts pioneered the first -- the Utah Health Exchange was created by HB 188. Signed into law by Gov. Jon Huntsman Jr. in March, it's one of four health reform bills designed to improve the affordability and accessibility of policies, and make the market more transparent." (The Salt Lake Tribune)
The Precarious Promise of Post-Employment Health Benefits
Excerpt: "This article examines the increasingly troubled state of employer-provided health benefits for retirees. The availability of such benefits is a major determinant of both the timing of retirement and the financial security of those who retire. Despite the signal importance of these benefits to current and prospective retirees, employers have been steadily eroding their value and in many cases, eliminating these benefits outright. Such actions are often catastrophic for the retirees affected, especially if they are not yet eligible for Medicare." (TaxProf Blog)
Sabbaticals, Furloughs: Retention Tools or Layoff-Lite?
Excerpt: "Although employers continue shedding jobs due to the recession, alternatives exist, such as sabbaticals and mandatory furloughs. Although leaders at yourSABBATICAL, an Atlanta-based company that sets up sabbatical programs, assert that a well-designed program can be low-cost and buoy morale, such programs - furloughs especially - can be a legal and personnel gamble. 'At first glance, business leaders may think that sabbaticals are managerial insanity, particularly in times like these,' says Elizabeth Pagano, co-founder of yourSABBATICAL. 'However, once they take a deeper look, they understand that the benefits of sabbaticals far outweigh the perceived unorthodoxy.'" (Employee Benefit News; free registration required)
Dependent Audits Surge As Employers Look for Cost-Cutting Alternatives
Excerpt: "These days, employers will stop at nothing to eliminate excessive health plan costs. Increasingly, more benefit managers are finding they can wipe out millions of dollars worth in one fell swoop by conducting dependent eligibility audits. Employers conducting such audits generally realize 3% to 12% of covered dependents are not eligible for their plan, according to research by BMI audit services - thus, the increased interest." (Employee Benefit News; free registration required)
[Opinion]
Statement of National Business Group on Health: Hearing Titled 'Addressing the Health in Health Care: Nutrition, Prevention and Wellness Practices' (PDF)
9 pages. Excerpt: "Today's hearing is focused on defining efforts in health care, industry and communities that are effective in addressing the problems of poor nutrition, obesity, and related chronic disease. These are problems affecting every state, including Nebraska. Adult obesity rates continue to rise in 23 states, and have not decreased in any state; Nebraska ranks 20th among states in adult obesity prevalence (Trust for America's Health, 2009). Rates of obesity among children (2 -19) have more than tripled since 1980 and may have leveled off; CDC research reports no statistically significant change between 2003-2004 and 2005-2006 (Ogden et al, 2008)." (National Business Group on Health)
BenefitsLink Newsletter (Advert.)
We Have Your Target Audience Have you considered advertising your company's products or services right here in the BenefitsLink newsletter? Our subscribers care about employee benefit plan compliance, administration, costs and design. Roles include in-house benefits directors and administrators, TPAs, consultants, attorneys, trust officers, auditors and investment managers. Your ad will show both your banner and a paragraph of text -- more exposure than you'll find anywhere else. And, of course, a clickable link to any page on your web site. Contact Mary Hall for details. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Grant of FBAR Filing Extension for Certain U.S. Persons (PDF)
3 pages. Excerpt: "Notice 2009-62 provides additional administrative relief for the following U.S. persons: Persons with no financial interest in a foreign financial account but with signature or other authority over the foreign financial account; Persons with a financial interest in, or signature authority over, a foreign financial account in which the assets are held in a commingled fund. For these specified persons, Notice 2009-62 provides that they have until June 30, 2010, to file an FBAR for 2008 and earlier calendar years with respect to foreign financial accounts. Therefore, persons eligible to take advantage of Notice 2009-62 may need to file FBARs for the 2009, 2008, and earlier calendar years on or before June 30, 2010, subject to future guidance." (Morgan, Lewis & Bockius LLP)
Treasury Form, Report of Foreign Bank and Financial Accounts (FBAR); Some Benefit/Pension Trusts May Need to File
Excerpt: "There has been confusion and uncertainty in the industry as to whether or not U.S. pension and employee benefit trusts with foreign holdings as investments must file FBAR. [Target page provides links to government and additional resources on the issue.]" (International Foundation of Employee Benefit Plans)
Work Furloughs Save on More than Just Pay
Excerpt: "A new study has found that 35% of employers have either turned to the use of furloughs as a cost-cutting option during the recession or have a furlough policy in place at their organization. In addition to saving on salary costs, Business and Legal Reports (BLR) says about 60% of the more than 100 respondents to a Hay Group survey said their contributions to defined contribution plans are calculated on the reduced pay created by the furlough. The survey indicates that nearly 40% discontinue health care benefits during the furlough period." (PLANSPONSOR.com; free registration required)
Reflections on the Work-Life Renaissance
Excerpt: "According to The Corporate Executive Board, employees who are happy with their work-life benefits work more than 20% harder and are one-third more likely to stay with the organization. In addition, although many companies have had layoffs and benefits cuts due to recession, maintaining or even adding lower cost work-life benefits will boost employee loyalty and morale. When the economy improves, organizations that support work-life initiatives will be in a better position to retain these employees and recruit new ones." (Employee Benefit News; free registration required)
Webcasts and Conferences
Webinar: How to Communicate Employee Benefits Effectively On Your Own PCNationwide on September 9, 2009
presented by Benefit Software Inc.
Webinar: Improving Employee Productivity With Online Benefits Enrollment
Nationwide on August 20, 2009
presented by Benefit Software Inc.
Webinar: Retaining Key Employees and Improving Employee Morale with Total Rewards Statements
Nationwide on August 20, 2009
presented by Benefit Software Inc.
(Click to post your webcast or conference)
Press Releases
Employers Concerned With Employees' Retirement Preparation, According to Deloitte StudyDeloitte
MassMutual Retirement Services Introduces Industry-Leading Financial Reporting Platform for Defined Benefit and Investment-Only Clients
MassMutual Retirement Services
U.S. Labor Department Sues Trustees of 3 Mendon, Mass., Company Pension Plans Seeking Restoration of More Than $300,000 in Plan Assets
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
MetLife’s Enhanced Benefits Benchmarking Tool Provides Employers and Brokers with Trend Insights for Maximizing Benefits Return on Investment
MetLife
Online Provider of Small Business 401(k)s Launches New Platform for RIAs
ShareBuilder 401k
(Click to post your press release)
EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
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