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October 23, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy

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[Guidance Overview]
2010 Cost-of-Living Adjustments for Medicare (PDF)

2 pages. Note the paragraph on page 2 regarding employer action to be taken. (Milliman)


Accidents of History Created the U.S. Health System
Excerpt: "In 1943, the Internal Revenue Service ruled that employer-based health care should be tax free. A second law, in 1954, made the tax advantages even more attractive. . . . By the 1960s, 70 percent [of the population] is covered by some kind of private, voluntary health insurance plan.' Thus employer-based insurance, which started with Blue Cross selling coverage to Texas teachers and spread because of government price controls and tax breaks, became our system. By the mid-1960s, Thomasson says, Americans started to see that system -- in which people with good jobs get health care through work and almost everyone else looks to government -- as if it were the natural order of things." (All Things Considered via National Public Radio)


The Level and Risk of Out-of-Pocket Health Care Spending (PDF)
24 pages. Excerpt: "We find that the measures of out-of-pocket spending in the [Health and Retirement Study (HRS)] are about 50% greater than those in [the Medical Expenditure Panel Survey (MEPS)] at the mean, and very much greater at the upper points of the distribution. HRS and MCBS are in better agreement, although the HRS is higher at the mean and at the top of the distribution. The implication is that the level and risk of out-of-pocket spending on health care are exaggerated in HRS. Observation error in the HRS measurement relative to MEPS and MCBS is to be expected, but this does not explain the apparent bias. We conclude that researchers who use HRS 2004 or earlier should examine health care spending carefully, even on a case-by-case basis." (University of Michigan Retirement Research Center)


GM Salaried Staff Get Only Consumer-Driven Health Plans
Excerpt: "General Motors Co. will offer only high-deductible consumer-driven health care plans to its 24,000 salaried employees, effective Jan. 1. GM salaried employees will choose from two plans, both linked to health savings accounts. Under one plan, the deductible will be $1,300 for single coverage and $3,100 for family coverage, with a maximum annual out-of-pocket expense of $2,200 for those with single coverage and $5,000 for family coverage. Employees will pay monthly premiums ranging from $5 for those with single coverage and $15 for those with family coverage. In the other CDHP, deductibles also will range from $1,300 to $3,100, but GM will cover all eligible in-network expenses after the deductibles are met. The monthly premiums for that plan will range from $25 for individual coverage to $75 for those with family coverage." (Business Insurance)



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Links to Items on Executive Comp, Benefits in General

Curbing Excessive Executive Compensation by Making It Non-Deductible
Excerpt: "Aaron Zelinsky . . . proposes curbing excessive executive compensation by making it nondeductible. The best part: the IRS can do it by simply re-interpreting an existing provision of the tax code, so there's no need for a bruising political battle in Congress." (Workplace Prof Blog)


Some Retiring CEOs Take Good Stock Prices with Them, Study Says
Excerpt: "A new study indicates that companies that use Supplemental Executive Retirement Plans (SERPs) could see their shares suffer when the CEO departs. The study found that for Fortune 1000 companies in the 1997-2006 period, stock prices lagged those of peers by 8.3% over three years following the retirements of CEOs whose SERPs were based on their performance in their last years, Reuters reports. Professor Paul Kalyta of McGill University in Montreal, author of the study, said the CEO 'has strong incentives to make accounting choices that increase firm short-term income and, therefore, amplify the value of his/her pension,' leaving the shares of companies with big CEO SERPs 'temporarily overpriced.'" (PLANSPONSOR.com; free registration required)


Bailed-Out Firms Ordered to Slash Top Pay
Excerpt: "The Treasury Department today ordered seven companies that received billions of dollars in government bailouts to halve total compensation for their top executives. But the big reductions will not apply to pay earned before November. Kenneth Feinberg, the Treasury official leading the pay review, told reporters that average salaries for the top 25 executives are being cut 90 percent starting next month. The action will apply to the top executives at Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial." (DelawareOnline)


Flexible Benefit Options Proving Cost-Efficient, According to Mercer
Excerpt: "The concept of employee choice in the type of benefits received from employers is taking hold worldwide, particularly as it offers a chance for employers to cut costs without cutting benefits, according to benefits consulting firm Mercer L.L.C. The company conducted a survey of more than 1,700 employers in 47 countries outside of the United States in May and June to find out what kinds of benefits companies offer and how they plan to change them. Attitudes and strategies toward employee benefits varies widely across the globe and depends largely upon local health systems and taxation systems. But the survey found that interest in flexible benefits packages that provide employees with wider choice about the mix of benefits received is becoming more popular in many countries." (Business Insurance)


Some Employers Adapt for Parents with Workplace Child Care, Time Off, Among Teacher Furlough-Day Measures
Excerpt: "Some working parents are getting help from their employers to care for children who will be out of school tomorrow, the first 'furlough Friday' for Hawaii public school teachers. Many companies with work rules that include flex-time or sick leave that can be used to care for dependents expect some employees to be absent tomorrow to care for school-age children. Others are offering special assistance such as in-office child care to help their employees cope with the disruption resulting from the effort to plug the state's budget shortfall." (Honolulu Advertiser)



Webcasts and Conferences

"Cross-Testing: Making the Most of Single-Member Groups" Web Seminar
Nationwide on November 24, 2009
presented by SunGard Relius

Executive Compensation: What to Expect in 2010 from Regulatory and Design Perspectives
Nationwide on November 17, 2009
presented by Buck Consultants, an ACS Company

(Click to post your webcast or conference)

Press Releases

U.S. Department of Labor Obtains Consent Judgment Requiring Winter Park, Florida, Law Firm to Terminate Pension Plan and Distribute Assets to Participants
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Court Judgment Requires Mokena, Illinois-based Company and Chief Executive Officer to Restore Retirement Fund Losses
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Employee Benefits Security Administration Issues Additional Guidance on Schedule C Reporting for 2009 Form 5500
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

McGraw Wentworth Recognized As One Of Southeast Michigan's Top Three Small Employers
McGraw Wentworth

401k Advisors Opens Dallas Office
401(k) Advisors

Hand Benefits & Trust Adds Shariah Compliant Option to Collective Investment Funds
Hand Benefits & Trust

(Click to post your press release)

Employee Benefits Jobs

Retirement Compliance Testing Manager
for Vanguard
in PA

Employee Benefits / ERISA Attorney
for Hill Ward Henderson
in FL

Account Manager-Chicago
for AUL/OneAmerica Financial Partners, Inc.
in IL

Senior Conversion Analyst
for Administaff
in TX

(Click to post your job opening | View all jobs | RSS feed for jobs RSS feed of all jobs )


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