If this message looks garbled to you or if the headlines in this message don't connect you to Web pages when you click on them, please request the "plain text" version of this newsletter ("Welfare Plans Edition") by emailing your request to publisher Dave Baker
The BenefitsLink Newsletter - Welfare Plans Edition
GM Deal With Medical Information Company Aims to Cut Health Costs Excerpt: "General Motors Corp., the nation's largest purchaser of health care, has partnered with a medical information company to give doctors 5,000 hand-held computers in hopes of minimizing deadly and injurious mistakes." (Detroit News)
IRS Explains Why Mileage Rate for Medical Expenses is Substantially Less Than Rate for Biz Expenses Excerpt: "Thanks to the IRS for its clear explanation of the reason for the medical and business mileage rate discrepancy. Health FSA claims can only be reimbursed if they are deductible under Code Section 213 (and meet other conditions), so this will help administrators answering questions about why participants' transportation costs to the hospital are reimbursed at a rate so much lower than for their business travel." (EBIA Weekly)
Presence of Unrelated Employee Health Plan Does Not Make Owners' Disability Policy Subject to ERISA Excerpt: "This case ... involved a husband and wife, the sole owners of a business, who applied for and received coverage under a long-term disability policy insured by Prudential. The policy was never offered to employees of the business and never covered anyone other than the two owners." (EBIA Weekly)
New Social Security Disability Claims Process Eliminates Reconsideration from Admin. Procedures Link to proposed regulations published January 19. Excerpt: "The changes, which would apply to initial applications for disability benefits, would: (1) permit disability examiners in our State agencies the flexibility to decide whether input from a medical or psychological consultant is needed to make a disability determination... (2) provide claimants with an opportunity for an informal disability conference... and (3) eliminate the reconsideration step of the administrative review process." (Social Security Administration)
Drug Prices To Blame For 13 Percent Hike In 2001 Health Insurance Costs Excerpt: "Skyrocketing prescription drug costs are to blame for the 13 percent hike in large employers' 2001 health benefit plans, according to the latest annual 'Towers Perrin Health Care Costs Survey.'" (insure.com)
Retirees See Threat To Health Benefits Excerpt: "The [Coalition for Retirement Security] is backing federal legislation that would bar employers from changing workers' health benefits after they retire. Under the measure, known as the Retiree Health Benefits Protection Act, companies that reduced or eliminated benefits for retirees would be required to reinstate them." (Boston Globe)
New HMO Watchdog Settles In; California Agency is Unique in U.S. Excerpt: "As head of a new state agency that regulates HMOs, Daniel Zingale takes the 'do no harm' part of the Hippocratic oath and applies it to the consumer. 'I'm more interested in preventing harm to a patient rather than putting a price tag on it after the patient has been harmed,' said Zingale, director of the Department of Managed Health Care in Sacramento." (San Francisco Chronicle)
Georgia Slaps CIGNA With $300,000 Fine For Late Payments Excerpt: "Handing down the stiffest penalty against an HMO in his department's history on Jan. 29, 2001, Georgia Insurance Commissioner John W. Oxendine ordered CIGNA to shell out $300,000 for failing to pay its claims on time." (insure.com)
Consumers' Group Publishes California HMO Arbitration Abuse Reports Excerpt: "Read a new patient testimony each day that highlights the need for reforms such as California legislation AB 1751 (Kuehl). The bill makes HMO arbitration voluntary rather than mandatory." (Foundation for Taxpayer and Consumer Rights)
Problems in Canadian Healthcare System Have Been Exaggerated Excerpt: "There is no true crisis in the Canadian healthcare system, according to physicians from the newly formed Tommy Douglas Research Institute.... the problems that do exist in Canada, [one researcher] added, have been exaggerated by interest groups who could make substantial profits if the Canadian system were to go the private route. Some of the foes of the Canadian healthcare system include US for-profit healthcare companies and some US medical associations." (Reuters, via Medscape; free registration required)
Families USA Criticizes Bush Prescription Drug Proposal for Seniors Excerpt: "President Bush's "Immediate Helping Hand" proposal to provide prescription drug coverage for America's seniors offers little in the way of real help to seniors struggling with soaring prescription drug costs, according to an analysis by Families USA, the national organization for health care consumers." (Families USA)
Consumers' Group Comments on Bush Prescription Drug Proposal for Seniors Excerpt: "While Consumers Union commends the Bush Administration for recognizing the urgent need for an expansion of prescription drug coverage for seniors and the disabled, the Administration's proposal falls short of providing the relief that all Medicare beneficiaries need from spiraling prescription drug prices." (Consumers Union)
Bush Offers Prescription Drug Coverage Proposal Excerpt: "Acting on a campaign promise, President Bush offered a proposal Monday to help states subsidize prescription drug costs for millions of needy senior citizens, saying it was a necessary step on the road to Medicare reform. The plan sent to Capitol Hill set up a clash with lawmakers who are hungry for a more sweeping Medicare overhaul now ..." (Associated Press, via Excite!)
Expanding Health Insurance Coverage: Reflections on Recent Efforts Excerpt: "This paper focuses on the major health care initiatives and proposals that policymakers have enacted or considered since 1980 and describes what we can learn from these efforts to expand coverage." (Medscape; free registration required)
Voters Said to Be Divided on Solutions to Healthcare Excerpt: "A post-election survey of voters finds widespread support for modest steps to address a variety of healthcare problems, but little consensus about how to solve them." (DrKoop.com)
(Following also appears in Retirement Plans Edition)
Benefit Costs Up 5.6 Percent in 2000 Excerpt: "Employee benefit costs for private industry-- including those involving paid leave, retirement, and insurance benefits-- rose 5.6 percent in 2000, according to figures just released by the U.S. Department of Labor's Bureau of Labor Statistics." (CFO.com)
Chao Confirmed as DOL Secretary by Unanimous Consent Excerpt: "Chao was warmly welcomed during confirmation hearings before the Senate Health, Education, Labor and Pensions Committee last week. She was introduced by a bipartisan group of lawmakers that included her husband, Sen. Mitch McConnell (R-Ky.)." (Chicago Tribune)
Graef Crystal: Compensation Experts Must Change Their Game Plan Excerpt: "Compensation consultants will need retraining if the stock market is to regain its buoyancy. Their actions, left unchecked, are likely to dampen corporate earnings growth and drain money from shareholders. The reason lies in the way most consultants determine how large an option grant executives or employees ought to receive." (Graef Crystal, on Bloomberg.com)
Stock Option Tax on Hold Excerpt: "As a temporary solution to a controversial issue, the IRS announced a two-year moratorium [January 18] on its collection of payroll and withholding taxes on ESPPs and ISOs." (CFO.com)
White House Delays Effective Date of Recently Published Regulations Excerpt: "This action temporarily dams the flow of regulations that have flooded the employee benefits community ... a torrent of regulations addressed such topics as ERISA claims procedures and summary plan descriptions; HIPAA health care privacy and nondiscrimination; national medical child support notices; cafeteria plan elections; transportation fringe benefits plans; COBRA; required minimum distributions; and electronic notices to interested parties." (EBIA Weekly)
for Benefit Services Corporation, a subsidiary of METLIFE, is a 401(k) plan administrator with 30 years of specialized experience in defined contribution recordkeeping. in GA