[Guidance Overview]
New GINA Regulations Require Immediate Employer Action – "Because the regulations take effect on January 10, 2011, employers need to take immediate action to ensure compliance." (Miller, Johnson, Snell & Cummiskey P.L.C.)

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[Guidance Overview]
IRS Clarification of Rules for Debit Cards to Reimburse Over-the-Counter Drugs – "IRS guidance clarifies that health reimbursement arrangement and FSA debit cards complying with certain conditions may reimburse for prescribed over-the-counter . . . drugs. Participants who give a valid prescription and receive an Rx number, among other things, may buy OTC drugs with debit cards from pharmacies, non-health care merchants with pharmacies, mail order and web-based vendors." (Mercer LLC)

Healthcare Law Repeal Clears Hurdle In U.S. House – "Republicans in the U.S. House of Representatives cleared the way on Friday for a vote next week to repeal President Barack Obama's landmark healthcare reform law, moving toward fulfilling a campaign pledge even though Democrats have the power to eventually kill it." (Reuters via The New York Times; one-time registration required)

As Health Coverage Costs Grow, Employers Are Eyeing Defined Contributions for Retirees – "Instead of employers picking one or two plan designs for retirees, the defined-contribution approach allows retirees to choose their own plan." (AIS Health.com)

GASB 45: Lessons Learned for Small Employers – "We've learned that, while smaller government employers may have fewer OPEB [other post-employment benefit] plan members, their OPEB plans are by no means simple. In fact, we've seen significant variation in how employers using the AMM [Alternative Measurement Method, which is well-suited for small employers] handle contribution methods and levels toward retiree health premiums, eligibility requirements for OPEB, and the structures of the OPEB plans themselves." (Healthcare Town Hall)

Defined Contribution Health Care: Here It Comes (PDF) – 7 pages. "The combination of persistent U.S. health care cost increases and a viable individual health insurance marketplace will cause a sea change in employer-sponsored health care offerings that is similar to that seen among employer-sponsored retirement benefit plans: movement away from defined benefit approaches and toward defined contribution designs. Although the authors show parallels between the evolution of employers' health care and retirement offerings, they explain why certain key developments will need to occur before defined contribution approaches become as prevalent in employer-sponsored health care plans as they are in today's employer-sponsored retirement plans." (International Society of Certified Employee Benefit Specialists)

Text of CBO's Preliminary Analysis of H.R. 2, the 'Repealing the Job-Killing Health Care Law Act' (PDF) – 10 pages. "Because Congressional deliberations on H.R. 2 could begin very soon, CBO is providing in this letter a less-detailed preliminary analysis of that legislation. CBO and JCT estimated that the March 2010 health care legislation would reduce budget deficits over the 2010-2019 period and in subsequent years; consequently, we expect that repealing that legislation would increase budget deficits." (U.S. Congressional Budget Office)

DOL Hears Employer Views on Health and Welfare Plan Fee Disclosures – "Employer groups testifying at a Department of Labor hearing said any rules requiring greater disclosure of fees by health and welfare plan service providers must strike the right balance between enhancing transparency and increasing plan expenses." (Mercer LLC)

Research on Workplace Clinics Observes They May Have Limited Impact on Direct Health Costs – "[W]hile well-designed, well-implemented clinics may prove to be wise, financially viable investments for employers, the magnitude of savings is unlikely to make clinics 'game changers' in bending the cost curve substantially overall." (Employee Benefit News; one-time free registration required)

Many Employers Not Measuring Effectiveness of Wellness Programs – "Among U.S. respondents, 40% have measured how wellness programs affect the cost of providing health care benefits to their employees. Of those, 45% report success in slowing health care cost increases, with a typical reduction of two to five percentage points per year. " (PLANSPONSOR.COM)

Evidence-Based Guidelines: Essential Building Blocks for Accountable Care (PDF) – 3 pages. "This paper presents clinical referral guidelines as an example of how evidence-based guidelines can affect and enhance the accountable care concept." (Milliman, Inc.)

When Insurers Put Profits Between Medical Care and Patient – "In articles, interviews, op-eds and testimony on Capitol Hill, Wendell Potter has described the dark underbelly of the health care insurance industry -- unkept promises of care, canceled coverage of those who get sick and fearmongering campaigns designed to quash any change that might adversely affect profits. He should know what he is talking about. For 20 years, Mr. Potter was the head of corporate communications at two major insurers, first at Humana and then at Cigna." (The New York Times; one-time registration required)

Republicans Reject CBO Price Tag for Health Law Repeal – "[T]he analysis released by the budget office on Thursday was based on the health care repeal bill that House Republicans introduced on Wednesday. And it highlighted the difficult position that Republicans are in as they try to address what they insist are the top two priorities of voters who elected them in November: cutting the deficit and undoing the health care law." (The New York Times; one-time registration required)

CBO Weighs In on GOP Health Law Repeal – "Here's text of Congressional Budget Director Douglas Elmendorf's blog post on the CBO letter to House Speaker John Boehner that says repealing the health law would add to budget deficits. Also see text of the letter [at the target page]." (Henry J. Kaiser Family Foundation)

Republicans' Health Reform Repeal Legislation and Original Overhaul Proposal – "Republicans have set a Jan. 12 vote in the House to try to repeal the new health care law. . . . The 2011 GOP Health Law Repeal Bill . . . To repeal the job-killing health care law and health care-related provisions in the Health Care and Education Reconciliation Act of 2010." (Henry J. Kaiser Family Foundation)

[Opinion]
New Ninth Circuit Decision Illustrates Importance of Knowing When a Case Settles and Ensuring Funds Are Segregated – "If this case is not reversed by the Ninth Circuit, en banc -- I will check PACER regularly and provide updates as appropriate regarding whether review is sought, etc. -- then it is going to become important again, at least in the Ninth Circuit, to be sure that personal injury attorneys sign agreements to hold funds in their trust accounts pending resolution of a lien through settlement or litigation." (Health Subrogation Blog)

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[Guidance Overview]
IRS Guidance on Code Section 162(m)(6) Limits on Deductible Compensation (PDF) – 4 pages. "The Notice clarifies that deductions for compensation paid after 2012 for services performed before 2013 are limited only if the employer is a covered health care provider at both times. The Notice also includes a de minimis rule that exempts a health care provider from being treated as covered if specified premiums (the definition differs before 2013 and after 2012) are less than 2% of gross revenues." (Buck Consultants)

Monthly Benefit News & Developments, January 2011 (PDF) – 2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits and upcoming key dates. (Milliman, Inc.)

Financial Literacy: What Works? How Could It Be More Effective? (PDF) – 31 pages. "This paper highlights the extent and effects of financial illiteracy among American households, reviews previous efforts to promote financial literacy, and discusses new directions for such initiatives." (The Brookings Institution)

Affordable Benefits More Attractive Than Salary, According to Survey – "Only 15% of full-time, employed workers are actively seeking a new job, but two-thirds (67%) reported that, although they are not actively looking, they would change jobs in 2011 for the right opportunity. And it's not necessarily a bigger paycheck that would woo them; 68% reported that affordable benefits are more important to them than salary." (PLANSPONSOR.COM)

Workplace Class Actions Rose in 2010; More of the Same Expected in 2011 – "The report found that the top ten settlements struck last year in the areas of wage and hour, ERISA, and governmental enforcement class actions combined to total $1.16 bil.lion--the largest one-year figure since Seyfarth Shaw began keeping track." (ALM Media Properties, LLC)

Seyfarth Shaw's Annual Workplace Class Action Litigation Report (PDF) – 17 pages. "The 664-page Report, the seventh annual edition, is the most comprehensive analysis of workplace-related class actions in the U.S. It examines 848 decisions rendered in 2010 against employers in state and federal courts, including private plaintiff and government enforcement actions." (Seyfarth Shaw LLP)

US Department Of Labor Publishes 2010 Form M-1 For Multiple Employer Welfare Arrangements U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

US Labor Department Sues Defunct Cranbury, NJ, Company to Protect 401(k) Plan Participants U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Seyfarth Shaw Publishes 2011 Workplace Class Action Litigation Report Seyfarth Shaw LLP

Vanguard Offers Pre-Retiree 401k Plan Participants Access to CFP's Vanguard

BridgeHealth Launches Early Indicators: Enables Employers and Health Plans to Forecast and Control Costs for Major Surgeries, Reduce Financial Risks BridgeHealth Medical

Wellness Workdays to Provide Stayhealthy Technology to Measure Wellness Program Success Stayhealthy, Inc.

EmblemHealth Among the First East Coast Health Plans to Receive Full URAC Comprehensive Wellness Accreditation EmblemHealth, Inc.

Funded Status of U.S. Pensions Rises to 84.3 Percent, According to BNY Mellon Asset Management BNY Mellon

The Standard

Pension Analyst
for Milliman in TX

Pension Administration Services Supervisor
for Milliman in TX

Manager, Compliance Testing and Reporting
for Prudential in IA

Manager, Product Marketing
for Prudential in CT, NJ

Assistant Secretary Of Labor Phyllis C. Borzi To Host Teleconference On America’s Health Care Coverage
Nationwide on January 10, 2011 U.S. Department of Labor, Employee Benefits Security Administration (EBSA)