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July 31, 2012 Get Retirement News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs


Webcasts and Conferences

Retirement Plan Summit 2012 - University of Baltimore - Merrick School of Business
in Maryland on October 12, 2012 presented by University of Baltimore - Merrick School of Business

Retirement Plan Summit 2012 - New York Law School
in New York on September 28, 2012 presented by New York Law School

"Brokerage Accounts and 404a-5: Making Sense of the Rules" Web Seminar
Nationwide on August 9, 2012 presented by SunGard Relius

Pension Factor 2012 Webinar Replay
Nationwide on August 3, 2012 presented by National Institute on Retirement Security


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How Employers Should Handle Medical Loss Ratio Rebates
"The rules offered in [DOL] Technical Release 2011-04 are simple enough to follow with respect to current plan participants. But to what extent must former participants share in any rebate? (After all, the rebate paid in the current year will be attributable to plan operations and premiums paid in the prior year.) In that case, the technical release allows an employer to determine whether the cost of distributing shares of a rebate to former participants would outweigh the benefit of the distribution. Specifically, if the cost of making distributions to former participants would equal or exceed the amount to be distributed, a plan fiduciary may properly decide to allocate the proceeds solely to current participants based on a fair and objective allocation method." (Verrill Dana LLP)


DATAIR! More Choices – Better Guidance – Less Cost   [Advert.]

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It's D-Day for the Post Office
"Wednesday, Aug. 1 ... the Postal Service is obligated, by statute, to make a $5.5 bil.lion payment ... to 'prefund' health benefits for future retirees. But, with less than $1 bil.lion in the bank, the Postal Service announced on Monday that it would not be making the payment. It has a second payment, for $5.6 bil.lion, due in September. Unless lightning strikes, it won't be making that one either.... [T]hat prefunding requirement ... has cost the post office more than $20 bil.lion since 2007—a period during which its total losses amounted to $25.3 bil.lion. Without that requirement, the post office would still likely be struggling, but it would have a lot more wiggle room—and a lot more cash. (Its pension obligations are also overfunded by around $11 bil.lion.)" (The New York Times; free registration required)

The Concentration of Health Care Spending
"Spending for health care in the U.S. is highly concentrated among a small subset of Americans. Just 5 percent of the population accounted for nearly half of all health care spending in 2009. Understanding these high-spenders is vital for developing strategies to reduce overall spending growth. [This data brief describes] the characteristics and health conditions of the highest spenders, the persistence of high spending patterns over time, the challenges in targeting the most expensive cases for better care management, and the implications of concentrated spending for risk-based payment and insur.ance market reform." (National Institute for Health Care Management)

Majority of Top State Employees in Iowa Will Pay for Health Plan
"[Some] said [Gov. Terry Branstad's] call for state workers to make contributions to their own health insur.ance premiums is a political stunt.... The majority of Iowa's top-ranking state government employees enrolled in a new health care plan and will pay 20 percent of their premiums ... 32 of Iowa's 54 department directors or division heads enrolled in the new health insur.ance plan. Two declined coverage by the state and 20 others were not enrolled.... Eighty-eight percent of state employees are enrolled in plans that don't require they pay monthly premiums[.]" (Des Moines Register)

50% of Health Care Dollars Spent on 5% of Americans
"A new issue brief from the National Institute of Health Care Management ... showed that in 2009 half the population—fully 150 mil.lion people—spent an average of just $236 per person on health care. That was a paltry $36 bil.lion for the entire group out of $1.3 tril.lion in personal health care expenditures. On the other side of the use spectrum, however, just five percent of the population—about 30 mil.lion people—spent a whopping $623 bil.lion or about half of all personal health care expenditures. That came to nearly $41,000 per patient." (The Fiscal Times)

Insur.ance Rebates Seen as Early Benefit of Health Care Law
"Although the percentage of insur.ance companies that owe rebates this year is relatively small, about 14 percent, many giants of the industry are on the list. They include Aetna, Cigna, Humana and UnitedHealthcare.... Self-insured employers, which cover more than half the nation's workers, are exempt from the new rule, as are Medicare and Medicaid. And of the 75 mil.lion people in health plans subject to the rule, only about 17 percent, or 12.8 mil.lion, will get rebates this year ... Many who buy coverage directly from insurers ... are receiving checks. But in most cases rebates are being sent to employers, who can chose to put them toward future premium costs instead of distributing them to workers." (The New York Times; free registration required)


Understanding the Impact of Health Care Reform on Employers   [Advert.]

Sponsored by Lorman and BenefitsLink.com

This seminar will give you the information you need to move forward in addressing the issues, and insight into upcoming changes. Learn about the latest developments including what is currently being enforced. Discounted pricing for BenefitsLink readers.


Massachusetts Aims To Set First-In-Nation Health Care Spending Target
"A 350-page bill filed five minutes before a legislative deadline for the year sets the first statewide target for health care spending in the U.S. Massachusetts would aim to hold health care cost increases to same rate as the state's economy through 2017. Specifically, health care costs could not rise faster than the Gross State Product from 2013 to 2017." (Kaiser Health News)

Kaiser Health Tracking Poll: Public Opinion Toward the ACA in the Wake the Supreme Court Decision
"When it comes to the individual mandate, the Court's verdict that the controversial provision is constitutional as a tax appears to have had little impact on opinion, with upwards of six in ten viewing the mandate unfavorably whether it is described as 'tax' or as a 'fine.' There is confusion over who will be subject to the tax penalty under the mandate: the poll finds that one in five Americans believe they will have to pay a penalty in 2014, even as experts suggest the share will be considerably smaller." (Kaiser Family Foundation)

Realizing the Potential of Onsite Health Centers (PDF)
"Concerned about the continuing escalation of health care costs, employees' access to primary care, and the need to keep workers healthy, productive and on the job, employers are exploring many avenues to achieve organizational health goals. Increasingly, their strategies include the introduction or expansion of onsite health services, ranging from onsite coaching and limited medical services, to full centers with pharmacy capabilities.... [B]oth employers and employees ... continue to view centers positively. [Survey] results reveal that a wide array of models is in place. Surprisingly, few organizations track their centers' return on investment (ROI), due either to the lack of suitable financial programs or their inability to collect data." (Towers Watson)

Health Care Plan Open Enrollment Is Approaching!
"Compliance with the new SBC rules is required beginning with any open enrollment period that begins on or after September 23, 2012. For most calendar-year plans, this means that SBCs will be required during open enrollment in 2012. For individuals enrolling other than through open enrollment (e.g., newly eligible or special enrollees), SBC's must be provided starting on the first day of the first plan year that begins on or after September 23, 2012. Therefore, some non-calendar year plans may have to start providing SBC's to newly eligible individuals and special enrollees before the next open enrollment period." (Poyner Spruill LLP)

New Health Plan Partnership, Data Sharing With Federal Health Care Fraud Enforcers Promises Greater Federal Oversight of Providers and Health Plans
"While the partnership signals a new opportunity for health plans to secure federal support if their efforts to monitor and address suspected health care fraud impacting private health plans, private payers also should keep in mind that federal fraud prosecutors also are likely to use the data and information gleaned from the partnership to identify and redress noncompliance by private health plans with federal Medicare and other federal program secondary payor, nondiscrimination and other coordination of benefits requirements; Affordable Care Act and other federal benefit, coverage and eligibility requirements and other applicable rules." (Solutions Law Press)

Most People Satisfied with Health Plan Coverage Despite Higher Costs
"[A]ccording to a [recent] survey ... 63 percent of respondents were very satisfied with their current health coverage provided by their employer or union, although nearly two-thirds had experienced higher premiums and out-of-pocket costs over the past three years. Roughly one-third were more satisfied with their coverage compared to three years earlier. Only 12 percent were less satisfied and 53 percent said their satisfaction level had remained the same." (Society for Human Resource Management)

[Opinion]

Text of Comments by National Business Group on Health to IRS on Regulations Pertaining to the Disclosure of Return Information to Carry Out Eligibility Requirements for Health Insur.ance Affordability Programs (PDF)
"As our members prepare for implementation of the Exchanges and associated insur.ance affordability programs, a primary concern will be minimizing the administrative and cost burdens associated with employees' interactions with Exchanges and eligibility determinations for Exchanges, premium tax credits, and cost-sharing reductions. Therefore, we support the Service's efforts to perform eligibility determinations using existing sources of information such as return information, as proposed in Prop. Treas. Reg. Section 301.6103(l)(21)-1." (National Business Group on Health)

[Opinion]

Deloitte Health Care Reform Memo, July 30, 2012
"[The] 2012 Deloitte Survey of U.S. Employers ... says employers want to maintain coverage for their employees, but increasingly smaller companies are especially unable to due to costs.... [Employers] see the value to their companies and in the communities of employee health coverage and a vibrant health system. But they don't have the patience to wait until its costs are under control, and they're increasingly unwilling to pay for employers that don't provide coverage and individuals who can afford coverage but go without." [Article also includes discussion and charts from Deloitte's 2012 Survey of U.S. Employers and the 2012 Survey of U.S. Health Care Consumers.] (Deloitte Center for Health Solutions)

[Opinion]

New Evidence from Massachusetts Health Care Reform Shows the Poor Are Getting Treated More Poorly
"Three years after the Massachusetts' health reform began, a study found the percent of people reporting they could not get needed care from specialists was little changed (7.1% vs. 7.0%). There was also no change in the percentage who said they visited an emergency room for a condition that could have been treated in a physician's office. Now a new study finds that low income patients have much more difficulty getting access to care[.]" (John Goodman's Health Policy Blog)

[Opinion]

Newland v. Sebelius: The General Welfare, Religious Liberty, and Contraception Coverage Under the ACA
"[O]ne issue that deserves particular attention here is the reconciling of the religious freedom of employers with the right of employees to access vital health services. The plaintiffs in this case objected to contraception, but other employers might object to coverage of blood transfusions or even of any medical care based on their religious convictions. The original rule properly ... excludes from its coverage churches and similar organizations, whose religious beliefs are quite apparent and who are likely to employ primarily persons who concur in their beliefs." (HealthAffairs Blog)

[Opinion]

Text of Statement by National Association of Letter Carriers on the August 1 Postal Service 'Default'
"The word 'default' sounds ominous, but in reality this is a default on the part of Congress. It was Congress that in 2006 imposed a burden on the Postal Service that no other public agency or private company in America faces—the obligation to pre-fund future retiree health benefits. And Congress made this unaffordable by requiring the Postal Service, which doesn't receive a dime of taxpayer money, to pre-fund 75 years into the future." (National Association of Letter Carriers, AFL-CIO)

Benefits in General; Executive Compensation

Is This Pay Package Good Enough?
"Job-hunting CFOs may have an innate sense as to whether a compensation offer feels right, but how can they know for sure? Here are some tips for getting comfortable with the decision.... [Evaluate the offer] using the following three comparative measures.... external equity, or how the offer aligns with similar-level positions at comparable companies.... internal equity, or how the offer compares to similar-level roles inside the new employer ... personal equity, or what the executive is currently making, if employed, or was making in his or her previous job, if in transition." (CFO)

Employment Cost Index Increased During Second Quarter 2012
"Compensation costs for civilian workers increased 0.5 percent, seasonally adjusted, for the 3-month period ending June 2012, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.4 percent, and benefits (which make up the remaining 30 percent of compensation) increased 0.6 percent." (U.S. Bureau of Labor Statistics)

Increase in 'Global Nomads' and High Medical Premiums Create Challenges for Expatriate Benefits
"While the number of employees on international assignments has remained relatively stable over recent years, the percentage of 'global nomads' (employees who move from country to country on multiple assignments) and long-term expatriates has increased, causing challenges for employers when it comes to providing expatriate benefits. Thus, provision of expatriate benefits remains a key priority for multinational companies—85% of survey respondents have specific procedures in place to monitor the success of expatriate benefit programs. Employers are eager to ensure that their expat benefits programs not only support business and HR strategies but also meet their assignees' needs." (Mercer)

Fourth Circuit Expands Equitable Relief Under ERISA Section 502(a)(3)
"The McCravy court's decision adopted the position argued repeatedly (and largely unsuccessfully) by the Secretary of Labor's amicus program since the Supreme Court's 2002 Great-West v. Knudson decision. If adopted by other circuits, the McCravy decision would authorize much greater relief, including monetary relief, against those violating numerous provisions of ERISA." (Schiff Hardin LLP)

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