Health & Welfare Plans Newsletter

March 24, 2015

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Employee Benefits Jobs

Defined Benefit Administrator - Pittsfield, MA
Guardian Life
in MA

Intermediate Project Manager
Transamerica Retirement Solutions
in MA

Plan Consultant
Transamerica Retirement Solutions
in MA

Senior Defined Benefit Calculation Analyst
Transamerica Retirement Solutions
in MA

Client Service Manager
The Newport Group
in FL, NC, WI

Director of Operations
Warren Averett Benefit Consultants
in AL

Strategic Communications Consultant
New York Life Retirement Plan Services
in MA

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Webcasts and Conferences

How to Prepare for a Privacy/Breach Notification OCR Audit or Investigation
April 2, 2015 WEBCAST
(Clearwater Compliance)

Beyond Fee Disclosures 2015
April 2, 2015 WEBCAST
(SunGard Relius)

PPA Pre-approved Plan Workshop (Corbel and PPD)
April 21, 2015 in CA
(SunGard Relius)

Wellness Programs: EEOC Enforcement Actions and Complying with Federal and State Laws
April 24, 2015 WEBCAST
(Lorman Education Services)

Flexible Compensation Specialist (FCS) Study Course - Session 3: Health Reimbursement Arrangements (HRA)
May 6, 2015 WEBCAST
(ECFC [Employers Council on Flexible Compensation])

HIPAA Privacy & Security
June 5, 2015 in IL
(Thomson Reuters / EBIA)

ASPPA Regional Conference
November 9, 2015 in OH
(ASPPA [American Society of Pension Professionals & Actuaries])

View All Webcasts and Conferences



Financial Incentives and Workplace Wellness-Program Participation (PDF)
20 pages. "Data from a large employer that offered financial incentives to encourage participation in its wellness program are analyzed in this paper. It examines how the characteristics of first-time, wellness-program participants changed with the enhancement of financial incentives for health-risk assessments (HRA) and biometric screenings. Those who completed an HRA or biometric screening in the two years prior to the change in financial incentives (i.e., pre-incentive) are compared to those who completed an HRA or biometric screening in the two years (for HRA) or three years (for biometric screening) after the change in the financial incentives. Findings from this study paint a vivid picture of the type of individual who favorably responds to wellness-program financial incentives." (Employee Benefit Research Institute [EBRI])  


[Advert.]

National Employee Benefits Day | April 2, 2015

Sponsored by International Foundation of Employee Benefit Plans [IFEBP]

National Employee Benefits Day 2015 focuses on Wellness 2.0 -- the growing movement to expand employer wellness programs to encompass all areas of total well-being: body, mind, wallet, community and work. Learn more about Wellness 2.0.



Cadillac Tax Issues for Employer Consideration When Negotiating Collective Bargaining Agreements
"[E]mployers are using a variety of strategies in CBAs to attempt to deal with the tax prospectively, including: [1] Reducing plan benefits and increasing deductibles; [2] Including language to allow the employer to unilaterally reduce benefits to avoid the imposition of the Cadillac Tax in the event the cost of benefits under the CBA triggers the tax; [3] Including language to allow the employer to reopen negotiations in 2017, after concrete guidance has been issued; and [4] Avoiding specific dollar thresholds applicable in 2018 and beyond unless they have the ability to re-visit those amounts." (Winston & Strawn LLP)  

Fired After City Billed for Spouse's Surgery, Employee Gets Trial on FMLA, ADA Associational Claims
"An employee who was discharged two days after her city employer received a $20,000 medical bill for her husband's cancer surgery, and whose supervisor had complained that adding her spouse to her medical benefits would impact the budget and expressed frustration over her need for leave to take her spouse to chemotherapy, survived summary judgment on her FMLA interference and retaliation claims, a federal magistrate judge in Ohio ruled." [Crossley v. Coshocton, No. 2:13-CV-804 (S.D. Ohio Mar. 18, 2015)] (Wolters Kluwer Law & Business)  

Ripple Effect: The ACA and Stop-Loss Insurance
"The ACA's elimination of annual and lifetime dollar limits, pre-existing conditions, and the provision authorizing coverage of clinical trials has exposed the stop-loss carriers to greater risk. In response, employers have seen, on average, a 15% increase in stop-loss premiums over the last three years." (Mercer Select)  

Problems, Potential of Self-Funding Draw Would-Be Disruptors
"Silicon Valley is coming for the employer sponsored health insurance business, trying to raise the bar on group health benefits and 'democratize' self-funding.... Among employers with less than 200 workers, fewer than 20 percent are using self-insured health plans, although many could as a cost-control strategy.... Collective Health has also gotten into that game with what its leaders pitch as a platform to 'optimize employee health benefit programs' by 'harnessing the power of data science and technology in ways that have simply not been possible to-date.' " (Healthcare Payer News)  


[Advert.]

9th ERISA Litigation, April 13-14, 2015, Chicago

Sponsored by ACI [American Conference Institute]

The only ERISA conference that goes the extra mile and brings you the highest-level judicial insights and maximum networking opportunities. It features expert strategies on today's key issues involving benefit plans, plan investments and fiduciaries.



Self-Insurance Draws New Converts Among Small Employers
"Whereas employers with fewer than 500 employees and dependents were once generally deemed unsuitable for self-insurance, some stop-loss carriers today think nothing of signing up employers with 50 or fewer employees. Presumably they can do so profitably. Employers suited to self-insurance anticipate savings in the 5% to 10% range, or more, industry participants say." (Employee Benefit News)  

GAO Report on Private Health Insurance: Early Evidence Finds Premium Tax Credit Likely Contributed to Expanded Coverage, But Some Lack Access to Affordable Plans
"[The ACA] mandated that GAO review the affordability of health insurance coverage.... Early evidence suggests that the advance premium tax credit (APTC) -- the refundable tax credit that can be paid on an advance basis -- likely contributed to an expansion of health insurance coverage in 2014 because it significantly reduced the cost of exchange plans' premiums for those eligible. Although there are limitations to measuring the effects of the APTC using currently available data, surveys GAO identified estimated that the uninsured rate declined significantly among households with incomes eligible for the APTC." [GAO-15-312] (U.S. Government Accountability Office [GAO])  

Medicare Sustainable Growth Rate Payment Fix on Tap This Week
"17 times in 11 years, Congress and the President have delayed mandated Medicare reimbursement cuts as part of the so called 'doc fix'.... Because many of the 17 band-aided fixes have taken the form of freezing doctor payments, the current payment rate is 17% below the 2001 rate, adjusted for increases in the cost of providing services.... Seniors making more than $133,500 will pay for $35 billion of the deal by paying 10% to 15% more in Medicare Part B and D." (Benefit Revolution)  

[Opinion]

After Five Years, Here Are Five Ways the ACA Is Working for America
"More than 16 million Americans have found private health coverage that suits their needs.... Regardless of their income, more Americans have greater access to quality health care.... Those with pre-existing conditions can no longer be denied health insurance.... The uninsured rate for young Americans is at its lowest point this century.... Americans no longer have lifetime and annual limits on their coverage." (The White House Blog)  

Benefits in General; Executive Compensation

2014 in Review: ERISA Civil and Criminal Enforcement Activity by DOL Is Trending Upward
"In FY 2014, 365 criminal investigations were closed, representing a nearly 30% increase since FY 2010. This step-up in criminal investigations goes back even farther than 2009 -- the number of criminal investigations has been trending upward since FY 2001, increasing 155% over that period -- but has accelerated in recent years.... The total number of ERISA civil investigations closed has been trending upward since FY 2010. In FY 2014, DOL closed 3,928 civil investigations, which represents a 26% increase over civil investigations closed in FY 2010 -- fairly comparable to the percentage increase over this period in criminal investigations closed. DOL closed more civil investigations in FY 2014 than it has since FY 2004, when it closed 4,399." (Sutherland Asbill & Brennan LLP)  

Davidson v. Henkel: A Rather 'Taxing' Decision for Deferred Comp Plans
"Nonqualified deferred compensation plans commonly include language to the effect that they are intended to comply with Section 409A (or to be exempt from its requirements).... IRS guidance suggests that these statements of intent may prove helpful in demonstrating compliance. But could those same statements -- which are generally intended to shield executives from Section 409A penalties -- come back to haunt employers? ... [U]nder the [Davidson v. Henkel Corp.] court's reasoning, even an inadvertent failure to comply with Section 409A would be inconsistent with the 'purpose' of the arrangement -- thereby conceivably supporting a claim for damages by an affected participant." (Spencer Fane)  

2015 Proxy Season Preview: Looking Back at the 2014 Mini-Season and Into 2015 (PDF)
8 pages. "During the 2014 mini-season, the average level of support for pay plans fell to 80% -- from 83% last mini-season. On the other hand, micro-cap companies saw an increase in support for their pay plans -- from 71% in the 2013 mini-season to 80% in 2014. Declines in support levels were pronounced at large-cap companies.... Almost half of all companies whose pay plans failed to garner 70% shareholder support in the 2013 mini-season, also failed to receive 70% support in the 2014 mini-season." (Broadridge and pwc)  

Press Releases

BAC Capital Advisors, LLC is Certified for Fiduciary Excellence
Centre for Fiduciary Excellence [CEFEX]

Retirement Resources Wins 401(k) Leadership Award
National Association of Plan Advisors [NAPA]

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