Health & Welfare Plans Newsletter |
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| October 22, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
Employee Benefits Institute of America (EBIA) (Advert.)
EBIA's Recorded Web Seminars - Quality and Convenience! We know that employee benefits professionals have many demands on their time. To help ease the time-crunch, EBIA's recorded web seminars are available 24/7--any time and any place you have an internet connection. What's more, when you purchase a recorded web seminar from EBIA, you and your co-workers can view it as many times as you wish for 60 days after purchase! Visit our website and you can search for seminars by topic, experience level, or key word. |
[Guidance Overview]
Court Decision Requiring Employer to Pay for Weight-Loss Surgery Has Raised Concerns Among Businesses
Excerpt: "The Indiana Court of Appeals has ruled that a pizza shop must pay for a lap-band weight-loss surgery for a 340-pound employee so another surgery he needs -- for a back injury he suffered at work -- can be successful. Employment experts and analysts say the decision in the case, Boston's The Gourmet Pizza vs. Adam Childers, raises concern among businesses, which are bracing for more such claims." (Human Resource Executive Online)
[Guidance Overview]
First Circuit Finds Plan Language Adequate for Delegation of ERISA Fiduciary's Authority
Excerpt: "Section 1105(c)(1)(B) of ERISA (29 U.S.C. 1105(c)(1)(B)) states that '[t]he instrument under which a plan is maintained may expressly provide for procedures . . . for named fiduciaries to designate persons other than named fiduciaries to carry out fiduciary responsibilities (other than trustee responsibilities) under the plan.' This First Circuit opinion examines the nature of the delegation process and provides guidance on the requirements necessary for an effective delegation of fiduciary authority. The issue is important since an ineffective delegation may lead to a benefit decision by a person or entity that has no claim to deferential judicial review." (Roy Harmon III via Health Plan Law)
[Guidance Overview]
Deere & Co. Wins Suit over Retiree Health Benefits Reduction
Excerpt: "The U.S. District Court for the Southern District of Iowa has ruled that Deere & Co. did not violate the Employee Retirement Income Security Act (ERISA) when it changed its health benefit offering to retirees. Judge Charles R. Wolle said in his opinion that Deere was unambiguous when it reserved its right to amend the retirees' health benefits. Wolle rejected the retirees' argument that their benefits were vested and could not be altered by Deere because summary plan descriptions said their health benefits 'will continue' during retirement. 'Instead, Deere repeatedly and plainly stated in plan documents, including SPDs, that it retained the right to amend, modify or terminate the benefit plans,' the opinion said." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
Health Risk Assessments Face Bias Hurdle
Excerpt: "Under IRS rules associated with the Genetic Information Nondiscrimination Act, employers are prohibited from collecting genetic information -- defined as family medical history -- in health risk assessments if that information will be used for 'underwriting' purposes. That includes offering employees discounts on their monthly premium contributions or lowering deductibles for completing a health risk assessment." (Workforce Management; free registration required)
As Cost Tops Health Care Concerns, Employers Reject Higher Expenditure for Reform
Excerpt: "Many of the nation's employers are focused on the health care reform deliberations in Congress and plan to adjust their benefit strategies based on how the final legislation affects their costs, according to a pulse survey of 433 HR and benefit executives from midsize and large organizations conducted by Towers Perrin. Employers say they will not absorb any additional costs resulting from reform and that they plan to take action to avoid doing so. Proposed cost-cutting strategies include: reducing benefits; raising prices for customers; reducing head count." (Towers Perrin)
Childhood Obesity: It's Everyone's Business
Excerpt: "[E]mployers cannot afford to ignore the epidemic of childhood obesity and overweight. Today, nearly one third of children are overweight or obese. Two thirds of children and teens do not meet daily exercise guidelines, and 10% do not participate in any physical activity at all. Additionally, 80% fail to meet daily fruit and vegetable consumption guidelines. Why should this matter to employers? An obese teenager has a 70% chance of becoming an obese adult. And with obesity-associated health care costs for employers currently running to at least $45 billion annually, the price tag of this childhood epidemic could become unaffordable if changes are not made. This toolkit, Childhood Obesity: It's Everyone's Business, was prepared in response to these trends . . . ." (National Business Group on Health)
Large Firms That 'Self-Insure' Are Resisting New Regulations
Excerpt: "The companies want to be able 'to keep extending health insurance to their workers free of many insurance regulations, such as those governing what services must be covered by a policy and when a person can be denied coverage'" (Kaiser Family Foundation)
Comparison of the Coverage and Revenue Provisions in Three Congressional Health Reform Bills (PDF)
7 pages. Comparison of the Coverage and Revenue Provisions in America's Healthy Future Act (as approved by the Senate Finance Committee), The Affordable Health Choices Act (S. 1979, as approved by the Senate HELP Committee), and the America's Affordable Health Choices Act (H.R. 3200, the House 'Tri-Committee' Bill). (American Benefits Council)
Employers Need to Be Prepared for Influenza Season (PDF)
4 pages. This newsletter outlines policies and issues that require the immediate attention of employers. (Buck Consultants)
GM Replacing Traditional Health Plan for Some Retirees
Excerpt: "General Motors Corp. will replace its traditional health care plan for salaried retirees younger than 65 with a consumer-driven health plan linked to health savings accounts effective Jan. 1, 2010. Under the new arrangement, posted on a GM retiree Web site, the annual deductible will be $2,500 for individual coverage and $5,000 for family coverage. The maximum annual out-of-pocket expense will be $3,500 for individuals and $7,000 for families." (Business Insurance)
Pilot Program Shows Re-Engineered Health Benefit Reduces Cost
Excerpt: "A just-completed pilot project sponsored by the Boeing Company shows that re-engineering primary health care, especially for the chronically ill, can dramatically improve the quality of care and reduce cost, according to an article in the policy journal Health Affairs. A Mercer news release says that among the outcomes in the Boeing pilot project, patient-reported work days missed were 56.5% lower among participants than among a baseline control group. Cost per participating patient was reduced by 20% compared to a control group." (PLANSPONSOR.com; free registration required)
Long-Term Care and the CLASS Act: The Sleeper in Health Reform
Excerpt: "The Kaiser Family Foundation briefing examines a little-noticed but major provision in two leading health reform bills that would change the way that the U.S. pays for long-term care. The provision, known as the Community Living Assistance Services and Supports (CLASS) Act, would establish a national voluntary insurance program that would allow for voluntary pre-financing of long-term care through payroll deductions and then provide a cash benefit to purchase services. The briefing included a summary of the measure and discussion by two expert panels." (Kaiser Family Foundation)
House Committee Votes to Strip Health Insurance Industry of Federal Antitrust Exemption
Excerpt: "The House Judiciary Committee Wednesday 'voted to strip the health insurance industry of its exemption from federal antitrust laws as senators announced plans to take the same step,' The Associated Press reports. The committee voted '20 to 9 to repeal a 1940s law that exempted the health insurance industry from federal controls over certain antitrust violations including price-fixing.'" (Kaiser Family Foundation)
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Tomlinson Reversal May Suggest Fair Pay Act Is Fatal to Ripeness Arguments in ADEA Pension Cases
Excerpt: "The Fair Pay Act provides that, for purposes of Title VII, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA), an unlawful act occurs with respect to discriminatory compensation: When the discriminatory compensation decision or practice is adopted. When a person becomes subject to the discriminatory compensation decision or practice. When a person is affected by application of the discriminatory compensation decision or practice, including each time wages, benefits or other compensation is paid, resulting from the decision or practice. As it relates to pension benefits, the Fair Pay Act states that 'nothing in [the] Act is intended to change current law treatment of when pension distributions are considered paid.'" (Faegre & Benson LLP)
[Guidance Overview]
2010 Limits for Benefit Plans (PDF)
4 pages. Excerpt: "Each year, the U.S. government adjusts the limits for pension plans, Social Security, Medicare, and other benefit programs to reflect price and wage inflation, and changes in the law. As a result, employee benefit specialists must annually adapt their benefit plans to accommodate the new limits. All of the numbers in this Alert are official, unless otherwise indicated. Our unofficial numbers should be the same as the official numbers because we used the same inflation data and statutory adjustment formulas that will be used by the federal agencies." (Aon Consulting)
Government to Order Pay Cuts at AIG, Other Firms
Excerpt: "The Obama administration reportedly will order American International Group Inc. and other bailed-out companies to slash the compensation of their highest-paid executives. The New York Times and the Wall Street Journal, citing people familiar with the administration's plans, reported Wednesday that the move stems from the growing furor over executive pay at companies that have received federal bailouts." (Business Insurance)
Financial Literacy among the Young (PDF)
35 pages. Excerpt: "[The paper shows] that financial literacy is low among the young; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy is strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings is about 50 percentage points more likely to know about risk diversification than a female with less than a high school education whose parents were not wealthy. These findings have implications for consumer policy." (University of Michigan Retirement Research Center)
Tax-Free Commuter Benefits Enhances Overall Benefits' Offerings
Excerpt: "The economic stimulus package appears to have sparked more employers offering tax-free commuter benefits, reports the TransitCenter, a non-profit group that promotes mass transit use. In its 2009 Commuter Impact Survey, the organization reports a 35% increase in the number of employers with programs for tax-free commuter benefits since Congress passed the American Recovery and Reinvestment Act in February 2008." (Employee Benefit News; free registration required)
Webcasts and Conferences
EFAST 2 - What You Should KnowNationwide on November 10, 2009
presented by ftwilliam.com
Retirement Plan Compliance Assistance Seminar
in Missouri on December 8, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Press Releases
Employer Commitment to Workers’ Retirement Plans Has Declined Over Last Decade, Watson Wyatt Analysis FindsWatson Wyatt
Newkirk Launches Low-Cost, Multi-Purpose Participant Communication
Newkirk
(Click to post your press release)
Employee Benefits Jobs
Lead Counselfor Nationwide
in OH
Employee Benefits Associate Attorney
for Thompson Hine LLP
in OH
Account /Client Services Manager (Insurance/TPA)
for Zenith Administrators
in CA
VP, Defined Benefit Product Management
for Prudential
in CT, NJ
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
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Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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