Health & Welfare Plans Newsletter |
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| November 20, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
IRS Regulations on Employer Comparable Contributions to HSAs
Excerpt: "The regulations also address comparability rules for qualified HSA distributions, which are direct distributions from health flexible spending accounts (FSAs) or health reimbursement accounts (HRAs) to HSAs. If an employer offers qualified HSA distributions to any employee, the employer must offer such distributions to all employees who qualify as eligible individuals under any HDHP. Conversely, an employer may offer qualified HSA distributions to eligible individuals enrolled under the employer's HDHP but not to eligible individuals who are not enrolled in the HDHP. The final regulations on HSA comparable contributions apply to employer contributions made on or after Jan. 1, 2010." (Watson Wyatt Worldwide)
Employers See Some Improvement in Senate Health Care Reform Bill
Excerpt: "Latest version says large employers with more than 50 full-time employees would be assessed a fine up to $750 for every employee who works more than 30 hours a week if any employee received health insurance subsidies from the government." (Workforce Management; free registration required)
Senate Health Reform Bill Contains Minimal Employer Penalties for Not Offering Health Coverage
Excerpt: "Employer-sponsored plans would be affected by H.R. 3590 in a variety of ways including these: Immediate Actions to Expand Coverage. A high-risk pool would established until 2014 to provide coverage for those denied benefits because of preexisting conditions; a temporary reinsurance program would provide reimbursement to participating employment-based plans for a portion of the cost of providing health insurance coverage to early retirees (those between 55 and 65); the Health Insurance Portability and Accountability Act would be amended to improve the electronic transmission of claims information . . . ." (Wolters Kluwer)
Weekly Flu News, November 19
Excerpt: "The 2009 H1N1 influenza pandemic has not only resulted in a surge of patients throughout our healthcare system, but also a surge in media coverage of the disease. In continuing our commitment to keep you informed on key issues related to emergency preparedness and response, we are sending these weekly alerts which highlight recent news reports and publications related to H1N1. These articles highlight some of the issues you and your organization may be facing in the wake of the current influenza pandemic." (Troutman Sanders LLP)
Interpreting the Tax on Cadillac Health Plans (PDF)
3 pages. Excerpt: "The idea of taxing so-called Cadillac plans may not sound unreasonable upon first glance. But an actuarial view quickly reveals that the high cost of these plans has as much to do with the characteristics of the covered population as it does with benefit richness. It also reveals that the method of determining the taxable benefit threshold may create unintended consequences -- especially when coupled with other benefit-level requirements under various reform proposals, leaving little room between benefit floors and the ceiling in certain slices of the insurance market. Is there a better way to structure a ceiling for maximum benefits? One solution might entail better defining actuarial value and using the refined notion to address both the floor and the ceiling." (Milliman)
House Health Care Reform Bill Would Make It Nearly Impossible to Reduce Retiree Medical Benefits
Excerpt: "The version of health care reform passed by the House of Representatives on November 7, 2009, the 'Affordable Health Care for America Act' ('H.R. 3962' or the 'House Bill'), contains, among its myriad rules and requirements, a provision that would have a dramatic effect on many employers. Section 110 of H.R. 3962 limits the ability of a group health plan sponsor to reduce retiree medical benefits. As currently drafted, Section 110 would not become effective until enactment. The fate of this provision remains uncertain, of course, as the Senate has not approved a health care reform bill, and the provision is not in either of the bills currently under consideration in the Senate. Employers who are contemplating changes to their retiree medical benefits should consider acting quickly -- before the potential new restrictions may become effective." (Jones Day)
Senate Health Bill Improves Employer Responsibility Provision
Excerpt: "The 'employer responsibility' provisions of the health reform bill that Senate leaders unveiled . . . reflect notable progress in lessening the disincentives that the Senate Finance Committee health bill would have created for employers to hire workers from low- or moderate-income families. Significant disincentives to hire or retain such workers remain, however, for a substantial number of employers, a matter that will require serious attention when the legislation goes to conference." (Center on Budget and Policy Priorities)
Congressional Update: Senate Health Care Bill, November 19, 2009
Excerpt: "Several other provisions of the recently introduced Senate health care overhaul bill include an additional 5% tax on cosmetic surgery that is not medically necessary; the cosmetic surgery tax is expected to generate $5.8 billion over ten years. Fees on medical devices would be reduced from $4 billion (Senate Finance proposal) to $2 billion. The House bill proposes a 2.5% excise tax instead of an industry wide fee. Projected to generate $400 million, there would also be a limit on a deduction available for Blue Cross Blue Shield plans; the deduction would only apply if companies have a medical loss ratio of at least 85%. A procedural vote to begin debate on the bill is set for Saturday, November 21." (Adams and Reese LLP)
Research Shows Employers That Adopt Consumer-Driven Health Plans Favor Health Saving Accounts As Key Funding Option
Excerpt: "The analysis is based on survey results of 370 employers polled in the summer of 2009. In the issue brief titled 'CDH plans shift to HSAs', researchers report that 44% of employers offer a CDH plan to their workers, a slight fall from 2008 (45%) but up from 28% in 2006." (Employee Benefit News; free registration required)
A Family's Flu Suffering and an Employer Dilemma
Excerpt: "When a UPS employee and his wife came down with swine flu, they endured tragedy and an estimated $1 million in medical bills. Their story points out how exposed some workers can be to the illness and how little employers can do for them, beyond education and encouraging good hygiene." (Workforce Management; free registration required)
Health Reform Bill Passed by House Restricts Employer Curtailment, Termination of Retiree Benefit
Excerpt: "The health reform bill that passed the House of Representatives on Saturday, November 7, contains a provision that, if enacted, would limit severely the ability of employers to curtail or terminate retiree medical benefits provided to retired individuals and their beneficiaries. Moreover, the new rule (Section 110 of H.R. 3962) would be effective upon enactment. . . . Recommendations: (i) Consider how the potential enactment of this provision may affect your company. (ii) Review your company's retiree medical arrangements with a view to making a decision soon whether to retain or alter the current arrangement. Part of the review would entail determining whether and when retiree benefits can be curtailed or terminated in light of plan documents and collective bargaining agreements and obligations. (iii) Form an evaluation of the business effects of a prohibition on curtailing or terminating retiree medical benefits and determine a course of action." (Jackson Lewis LLP)
Critical Issues in Health Reform: Actuarial Perspectives
Excerpt: "Actuaries bring a crucial and unique perspective to the health care reform dialogue. The role of the Academy's Health Practice Council is to bring that actuarial perspective to the attention and aid of policymakers through the introduction of a new series of policy statements: Critical Issues in Health Reform. [on the target page], you'll find links to each of those informative statements, as well as other thought-provoking pieces on the wide-ranging subject of health care reform. " (American Academy of Actuaries)
EmployeeBenefitsJobs.com (Advert.)
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Links to Items on Executive Comp, Benefits in General
Private Pensions: Sponsors of 10 Underfunded Plans Paid Executives Approximately $350 Million in Compensation Shortly Before Plan TerminationExcerpt: "To identify case study examples GAO analyzed a listing of the 1,246 underfunded plans that were terminated from 1999 to 2008 and selected public companies with large unfunded liabilities, large unfunded liabilities per participant, and a large number of plan participants. GAO reviewed documents provided by companies and executives, and interviewed PBGC and company officials. GAO also reviewed Securities and Exchange Commission (SEC) filings and PBGC documents disclosing plan underfunding at the time of termination and missed contributions. Executive compensation figures may be understated because some company executives could not be located, did not respond to document requests, declined interviews, and did not give GAO access to their tax records." (U.S. Government Accountability Office)
The Lighter Side of Employee Benefits: 'Can We Have Bikini Fridays?' And Other Strange Requests
Excerpt: "In a new survey by CareerBuilder, hiring managers shared the most memorable requests or recommendations they have received in the office suggestion box." (CareerBuilder.com)
IRS Pilot Program to Allow Truncated Social Security Numbers on Information Returns
Excerpt: "The IRS on Thursday announced a pilot program aimed at deterring identity theft (Notice 2009-93). Under the program, filers of certain paper information returns will be allowed to truncate the payee's Social Security number on the payee statement. The change affects statements for 2009 and 2010. Only paper payee statements for forms in the 1098, 1099 and 5498 series are eligible for the program. Filers must meet certain requirements, spelled out in the notice, but if they do, they will be treated as having met the various IRS and Treasury requirements that a payee's Social Security or taxpayer identification number be included on the statement." (American Institute of Certified Public Accountants)
Webcasts and Conferences
401(k) Plan Roundup: This Year's Most Significant DevelopmentsNationwide on November 19, 2009
presented by EBIA / Thomson Reuters
(Click to post your webcast or conference)
Press Releases
Financial Engines Reaches $25 Billion in Managed AccountsFinancial Engines, Inc.
Council Comments on Senate Health Care Reform Bill
American Benefits Council
Survey Finds New Green Initiatives Hold Promise for Jointly Managed Apprenticeship Program Growth
International Foundation of Employee Benefit Plans
Pay-for-Performance Remains Strong; Salary Increases to Rise in 2010, According to Buck Consultants Survey
Buck Consultants, an ACS Company
(Click to post your press release)
Employee Benefits Jobs
Senior Staff Benefits Accountantfor The Savitz Organization
in NJ, PA
Conversion Consultant
for Summit Retirement Plan Services, Inc.
in OH
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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