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Most Employers Considering Move Towards Exchange-Based Individual Market Strategies for Retiree Medical Programs
"According to Aon Hewitt's 2012 survey of almost 450 private and public plan sponsors representing 5.8 million retirees, 6 in 10 employers have reviewed or are currently reviewing their retiree health care strategies and are considering alternatives in order to leverage opportunities created by the PPACA. Of those employers planning changes, 63 percent are currently implementing or are considering moving towards an individual market strategy, where they would leverage a health exchange partnership. Aon Hewitt estimates that approximately two-thirds of Medicare-eligible retirees in the U.S. are already enrolled in a Medicare plan through the individual market."
(Aon Hewitt)
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Making the Sale: States Seek Branding for Health Insurance Exchanges
"[J]ust the word 'exchange' sounds to many like off-putting government-speak, and some states are eager to come up with a more appealing name for these new marketplaces. Peter Lee, who directs California's Health Benefit Exchange, says it's up for a new name, and he says they want it to sound fresh, dynamic and innovative."
(Kaiser Health News)
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Why the Health Care Tax Credit Eludes Many Small Businesses
"Estimates of the number of businesses eligible to take the tax credit have ranged from 1.4 million to 4 million companies, but in May, the Government Accountability Office reported that only 170,300 firms actually claimed the credit in 2010.... The credit was aimed squarely at the smallest companies ... However ... it appears not to have persuaded very many to start offering insurance. The most recent study ... found that just half of all companies with fewer than 10 employees offered insurance, a share that has not moved much since 2005."
(The New York Times; free registration required)
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Health Reform's Pre-Existing Condition Insurance Program Fulfills Mission as Bridge Program
"Looking at the relatively new federal PCIP and state-run high-risk pools across the country allows us a diverse view of how these work, and the findings are clear: high-risk pools work as a stop-gap measure, but they are expensive to run, often unaffordable for those who need them, and not a viable long-term solution to the problem of high rates of uninsured Americans."
(Wolters Kluwer Law & Business)
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Higher Prices by Hospitals and Other Providers Drove 2011 Health Care Spending Increases
"Spending on medical care for Americans with job-based insurance rose 4.6 percent last year, driven mainly by higher prices charged by hospitals and other medical providers, a report out today says. The growth came despite a sluggish economy which some economists thought would translate into more modest spending growth. Still, last year's per enrollee increase ranks below the 5.8 percent increase in 2009[.]"
(Kaiser Health News)
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24-Month Limitation on Long-Term Disability Benefits Upheld Despite Claimed Multiple Causes of Disability
"Metropolitan Life Insurance Co.'s decision that a long-term disability plan participant's benefits were subject to a plan provision limiting benefits for certain disabilities to 24 months was not arbitrary and capricious, the U.S. District Court for the District of Massachusetts ruled Sept. 21 ... The participant argued that he was disabled due to a combination of disabilities, including several that were excluded from the plan's 24-month limitation provision, and that MetLife's decision limiting his benefits was unreasonable." [Brien v. Metropolitan Life Insurance Co., No. 1:11-cv-10395-DJC (D. Mass., 9/21/12)]
(Bloomberg BNA)
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Medical Costs Projected to Increase in the High Single Digits in 2013
"Reflecting claim activity over a six-month period, projected increases in the national average cost of claims include the following: Health maintenance organizations (HMO), 8.5 percent; Point-of-sale (POS), 8.7 percent; Preferred provider organizations (PPO) and consumer driver health plans, 9.3 percent; Exclusive provider organizations (EPO), 9.4 percent; Indemnity plans, 10.2 percent; Prescription plans, 7.6 percent."
(Wells Fargo)
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[Opinion]
Another Pinocchio for Sebelius: Purported Savings for Seniors Is Canceled by Medicare Spending Cutbacks
"In terms of the sheer dollars involved, the planned reduction in future Medicare payments is the equivalent of raising the eligibility age for Medicare to age 68 for today's 65 year olds, to age 71 for 55 year olds and to age 74 for 45 year olds. But rather than keep the system as is and raise the age of eligibility, the reform law tries to achieve equivalent savings by paying less to providers. This will decrease access to care for seniors dramatically, and ultimately create a two-tiered health care system—with the elderly getting second class care."
(John Goodman's Health Policy Blog)
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Benefits in General; Executive Compensation
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More Companies Filing Supplemental Disclosure to Demonstrate Pay for Performance
"With scrutiny of executive compensation at an all-time high as a result of the implementation of say-on-pay rules, more companies are using alternate definitions of 'pay' to demonstrate their pay-for-performance alignment and to counter negative say-on-pay vote recommendations by proxy advisory firms, according to [a new] report from The Conference Board. The report ... shows an emerging trend in the Russell 3000 Index, where some companies have been supplementing the summary compensation table (SCT) pay used to quantify named executive officer compensation with additional proxy filings detailing other pay measures, such as 'realized' or 'realizable' pay."
(The Conference Board; purchased required to view full report)
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ERISA Advisory Council to Meet on October 30-31, 2012 (PDF)
"The purpose of the open meeting ... is for the Advisory Council members to finalize the recommendations they will present to the Secretary. At the October 31 afternoon session, the Council members will receive an update from the Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA) and present their recommendations. The Council recommendations will be on the following issues: (1) Current Challenges and Best Practices Concerning Beneficiary Designations in Retirement and Life Insurance Plans; (2) Examining Income Replacement During Retirement Years in a Defined Contribution Plan System; and (3) Managing Disability Risks in an Environment of Individual Responsibility." [Ed. note: Deadline for submission of written statements is October 22, 2012.]
(Employee Benefits Security Administration)
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2012-2013 U.S. Salary Increase Survey Highlights (PDF)
"Organizations remain apprehensive about adding to their fixed costs and instead are increasing their reliance on variable forms of rewards. Overall actual salary increase spending for 2012 at 2.8% fell just short of last year's projection of 2.9%. Projected salary increase spending for 2013 is expected to increase modestly to 3.0%. Conversely, variable pay spending in 2012 at 12.0% equals the highest levels of spending recorded in [this] 35+ year study and is projected to increase slightly in 2013 to 12.1%."
(Aon Hewitt)
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Press Releases
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