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
May 14, 2001
Today's sponsor: Employee Benefits Webcast (click)
Industry Shifts from Complaining to Complying with Patient Privacy Rule
Excerpt: "When the Bush Administration essentially endorsed new patient privacy protections last month -- instead of overhauling them as many had expected -- it sent two clear messages to the health care industry. First, it signaled providers and payers to stop complaining about the new rule and start the process of complying with it.... The health care industry has two years to comply with the rule's provisions, which the government estimates will cost $17.6 billion over the next 10 years." (Medscape; free registration required)
Digital Signatures Spark Debate
Excerpt: "Mr. Waegemann, a businessman who is also chairman of an industry standards group, is pressing for the use of so-called electronic signatures that would add an authentication code to each document. His concern stems from a federal law that by October 2002 will require health care providers and insurers, as well as government programs like Medicare and Medicaid, to start conducting their administrative transactions electronically." (New York Times; free registration required)
Provision of Disparate Retiree Health Coverage Based On Medicare Eligibility Violates ADEA
In the latest ruling in a controversial retiree health case, the U.S. District Court for the Western District of Pennsylvania has ruled that the provision of disparate health care coverage to Medicare-eligible retirees and to retirees younger than age 65 violates the Age Discrimination in Employment Act (ADEA). (SpencerNet)
ERISA Plan Potentially Liable Under State Law for Invasion of Privacy in Processing Disability Claim
Excerpt: "After retaining an attorney and exchanging correspondence with UNUM, the employee filed this lawsuit seeking reinstatement of his benefits and alleging that UNUM had violated state law in conducting its investigation. (Specifically, the employee alleged that UNUM was liable for tortious invasion of privacy by its private investigators who, among other things, were alleged to have obtained employment information by falsely claiming to be bank loan officers ..." (EBIA Weekly)
Under State Law, MEWA Not Permitted to Exclude Coverage for Illness Related To Alcoholism
Excerpt: "While health plans maintained by employers are generally protected under the ERISA preemption provision from the application of state insurance laws, MEWAs are subject to a special preemption rule that permits increased state regulation of their activities. Under this rule, a self-insured MEWA (like the one involved in this case) is subject to all state insurance laws except to the extent a law is inconsistent with Title I of ERISA." (EBIA Weekly)
Loyalty Drops After Layoffs
Excerpt: "Companies that cut their workforces can expect a sharp drop in commitment from workers who remain, according to an employee-loyalty survey conducted last year by The Loyalty Institute." (The San Jose Mercury News)
Spending For Retail Drugs Increased 18.8% In 2000, According To Recent Study
Spending on retail outpatient prescription drugs continued to rise, for the fifth consecutive year, by 18.8% from 1999 to 2000, from $111.1 billion to $131.9 billion, according to a report recently released by the National Institute for Health Care Management Research and Educational Foundation. (SpencerNet)
Companies Head Off Costly Health Care
Excerpt: "... about 8 percent of patients are responsible for more than 50 percent of medical costs ... While some efforts to control medical costs focus on reviewing requests for care or denying payment for unnecessary services ... FutureHealth's emphasis is ... to make sure people are taking their medication, getting checkups on schedule and following their exercise and diet regimens." (Baltimore Sun)
State Agencies, Consumer Group, Physicians and Nurses Unveil Free Calif. Patient Guide
Press release. Excerpt: "California patients facing problems with their HMO, concerns over their medical privacy, or questions about their rights under new state HMO reform laws can now turn to a new, free 80-page guide available from state consumer hotlines." (The Foundation for Taxpayer & Consumer Rights)
Patients Bill of Rights Heads to Oregon Governor's Desk
Excerpt: "A 'patients' bill of rights' that would provide extra protection for health insurance consumers is on its way to Governor Kitzhaber who is expected to sign the bill." (KMTR.com via MSNBC.com)
John Hancock Pitches Fixed Annuity To Pay For LTC Health Insurance
Excerpt: "Banking on the notion that you'll want to use Peter to pay Paul, John Hancock Life Insurance has introduced 'LTC EasyPay,' a long term care insurance payment plan that uses the income from a Hancock immediate fixed annuity to automatically pay premiums for Hancock long term care insurance." (insure.com)
Avoiding Betting the Ranch: Long-Term Care Insurance May Be Next Big Issue for Boomers
Excerpt: "Aside from death, there are few prospects more frightening than an old age in which your health is poor and your finances worse. The number of LTC policies has doubled in the past five years, as people recognize that Medicaid will cover them only after their assets have been 'spent down.'" (Time.com)
(Following items also appear in Retirement Plans Edition)
IRS Issues "2001 Priorities for Tax Regulations and Other Administrative Guidance" (PDF)
27 pages. See pages 3 and 4 for 67 employee benefits items on the IRS' business agenda. (Ernst & Young TaxCast)
DOL Updates Form 5500 Troubleshooter's Guide
Excerpt: "A lot of water has flowed under the bridge since 1996, the last year that the DOL issued a practical guide (other than the Form 5500 Instructions) to help plan administrators file their Form 5500s. Administrators who were frustrated with the aging guidance may find some relief in this updated Form 5500 Guide." (EBIA Weekly)
Employees Head To Court In Stock Option Battles
Excerpt: "Employees and employers are suing each other over stock options.... At one end, there are employees alleging that they were fired improperly just before they were to reap big gains on stock options. At the other, there are companies prodding workers who jumped ship to the competition to repay stock-option gains." (CareerJournal.com)
Employee Terminated for Reasons Other Than Deficient Performance Was Terminated "Without Cause" (PDF)
Scribner v. Worldcom, Inc. (9th Cir. 2001). Excerpt: "In this appeal, we must decide what the words 'termination without cause' mean in the context of a stock option contract between an employer and employee. The question is whether the employer, who retains discretion to construe the contract, can define the word 'cause' to mean something other than its ordinary meaning without informing the employee that the ordinary meaning is irrelevant.... [W]e conclude that the answer is no." (FindLaw.com)
IRS Announces Employment Tax Moratorium on Statutory Stock Options
Excerpt: "After 30 years of relative official silence, the IRS is reexamining the employment tax treatment of statutory stock options, i.e., incentive stock options (ISOs) and employee stock purchase plans (ESPPs).... [E]mployers generally have not paid employment taxes on ISO and ESPP income and have not withheld the taxes from workers' paychecks when disqualifying dispositions are made." (Groom Law Group)
Newly Posted or Renewed Job Openings ( Post Yours! )
Newly Posted Conferences ( Post Yours! )
Subscribe to the Retirement Plans Edition, too (click)
Copyright 2001 BenefitsLink.com, Inc.
You may freely distribute this email newsletter in whole.
Click here to learn how your company can sponsor a future issue!
BenefitsLink is a registered trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
We're proud of our privacy policy .
To subscribe (free): visit https://benefitslink.com/newsletter - or the person desiring to subscribe can send an email to BLwelfare@add.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/
The BenefitsLink Newsletter -
Welfare Plans Edition
Welfare Plans Edition
May 14, 2001
Today's sponsor: Employee Benefits Webcast (click)
Webcast coming up May 30! FMLA: The Family and Medical Leave Act -- "It's Not Getting Any Easier." Instructor: Christine E. Howard, Esq. and Jennifer B. Sandberg, Esq., Fisher & Phillips LLP. Presented by Human Resource Consultants. Click to register and purchase this webcast through BenefitsLink!
Industry Shifts from Complaining to Complying with Patient Privacy Rule
Excerpt: "When the Bush Administration essentially endorsed new patient privacy protections last month -- instead of overhauling them as many had expected -- it sent two clear messages to the health care industry. First, it signaled providers and payers to stop complaining about the new rule and start the process of complying with it.... The health care industry has two years to comply with the rule's provisions, which the government estimates will cost $17.6 billion over the next 10 years." (Medscape; free registration required)
Digital Signatures Spark Debate
Excerpt: "Mr. Waegemann, a businessman who is also chairman of an industry standards group, is pressing for the use of so-called electronic signatures that would add an authentication code to each document. His concern stems from a federal law that by October 2002 will require health care providers and insurers, as well as government programs like Medicare and Medicaid, to start conducting their administrative transactions electronically." (New York Times; free registration required)
Provision of Disparate Retiree Health Coverage Based On Medicare Eligibility Violates ADEA
In the latest ruling in a controversial retiree health case, the U.S. District Court for the Western District of Pennsylvania has ruled that the provision of disparate health care coverage to Medicare-eligible retirees and to retirees younger than age 65 violates the Age Discrimination in Employment Act (ADEA). (SpencerNet)
ERISA Plan Potentially Liable Under State Law for Invasion of Privacy in Processing Disability Claim
Excerpt: "After retaining an attorney and exchanging correspondence with UNUM, the employee filed this lawsuit seeking reinstatement of his benefits and alleging that UNUM had violated state law in conducting its investigation. (Specifically, the employee alleged that UNUM was liable for tortious invasion of privacy by its private investigators who, among other things, were alleged to have obtained employment information by falsely claiming to be bank loan officers ..." (EBIA Weekly)
Under State Law, MEWA Not Permitted to Exclude Coverage for Illness Related To Alcoholism
Excerpt: "While health plans maintained by employers are generally protected under the ERISA preemption provision from the application of state insurance laws, MEWAs are subject to a special preemption rule that permits increased state regulation of their activities. Under this rule, a self-insured MEWA (like the one involved in this case) is subject to all state insurance laws except to the extent a law is inconsistent with Title I of ERISA." (EBIA Weekly)
Loyalty Drops After Layoffs
Excerpt: "Companies that cut their workforces can expect a sharp drop in commitment from workers who remain, according to an employee-loyalty survey conducted last year by The Loyalty Institute." (The San Jose Mercury News)
Spending For Retail Drugs Increased 18.8% In 2000, According To Recent Study
Spending on retail outpatient prescription drugs continued to rise, for the fifth consecutive year, by 18.8% from 1999 to 2000, from $111.1 billion to $131.9 billion, according to a report recently released by the National Institute for Health Care Management Research and Educational Foundation. (SpencerNet)
Companies Head Off Costly Health Care
Excerpt: "... about 8 percent of patients are responsible for more than 50 percent of medical costs ... While some efforts to control medical costs focus on reviewing requests for care or denying payment for unnecessary services ... FutureHealth's emphasis is ... to make sure people are taking their medication, getting checkups on schedule and following their exercise and diet regimens." (Baltimore Sun)
State Agencies, Consumer Group, Physicians and Nurses Unveil Free Calif. Patient Guide
Press release. Excerpt: "California patients facing problems with their HMO, concerns over their medical privacy, or questions about their rights under new state HMO reform laws can now turn to a new, free 80-page guide available from state consumer hotlines." (The Foundation for Taxpayer & Consumer Rights)
Patients Bill of Rights Heads to Oregon Governor's Desk
Excerpt: "A 'patients' bill of rights' that would provide extra protection for health insurance consumers is on its way to Governor Kitzhaber who is expected to sign the bill." (KMTR.com via MSNBC.com)
John Hancock Pitches Fixed Annuity To Pay For LTC Health Insurance
Excerpt: "Banking on the notion that you'll want to use Peter to pay Paul, John Hancock Life Insurance has introduced 'LTC EasyPay,' a long term care insurance payment plan that uses the income from a Hancock immediate fixed annuity to automatically pay premiums for Hancock long term care insurance." (insure.com)
Avoiding Betting the Ranch: Long-Term Care Insurance May Be Next Big Issue for Boomers
Excerpt: "Aside from death, there are few prospects more frightening than an old age in which your health is poor and your finances worse. The number of LTC policies has doubled in the past five years, as people recognize that Medicaid will cover them only after their assets have been 'spent down.'" (Time.com)
IRS Issues "2001 Priorities for Tax Regulations and Other Administrative Guidance" (PDF)
27 pages. See pages 3 and 4 for 67 employee benefits items on the IRS' business agenda. (Ernst & Young TaxCast)
DOL Updates Form 5500 Troubleshooter's Guide
Excerpt: "A lot of water has flowed under the bridge since 1996, the last year that the DOL issued a practical guide (other than the Form 5500 Instructions) to help plan administrators file their Form 5500s. Administrators who were frustrated with the aging guidance may find some relief in this updated Form 5500 Guide." (EBIA Weekly)
Employees Head To Court In Stock Option Battles
Excerpt: "Employees and employers are suing each other over stock options.... At one end, there are employees alleging that they were fired improperly just before they were to reap big gains on stock options. At the other, there are companies prodding workers who jumped ship to the competition to repay stock-option gains." (CareerJournal.com)
Employee Terminated for Reasons Other Than Deficient Performance Was Terminated "Without Cause" (PDF)
Scribner v. Worldcom, Inc. (9th Cir. 2001). Excerpt: "In this appeal, we must decide what the words 'termination without cause' mean in the context of a stock option contract between an employer and employee. The question is whether the employer, who retains discretion to construe the contract, can define the word 'cause' to mean something other than its ordinary meaning without informing the employee that the ordinary meaning is irrelevant.... [W]e conclude that the answer is no." (FindLaw.com)
IRS Announces Employment Tax Moratorium on Statutory Stock Options
Excerpt: "After 30 years of relative official silence, the IRS is reexamining the employment tax treatment of statutory stock options, i.e., incentive stock options (ISOs) and employee stock purchase plans (ESPPs).... [E]mployers generally have not paid employment taxes on ISO and ESPP income and have not withheld the taxes from workers' paychecks when disqualifying dispositions are made." (Groom Law Group)
Newly Posted or Renewed Job Openings ( Post Yours! )
for First Mercantile Trust Company
in TN
in TN
for Automatic Data Processing- Retirement Services
in NJ
in NJ
for ING-Aetna Financial Services
in CT
in CT
for Stephen H. Rosen & Associates, Inc.
in NJ
in NJ
for Florida Pensions, LLC
in FL
in FL
for Morgan, Lewis & Bockius LLP
in DC
in DC
for CitiStreet
in NJ
in NJ
for CitiStreet
in NJ
in NJ
for Oxford Health Plans
in CT
in CT
for Leggette Actuaries
in TX
in TX
for Leggette Actuaries
in TX
in TX
for Del Monte
in CA
in CA
Newly Posted Conferences ( Post Yours! )
in WA
on August 20, 2001
presented by ASPA
presented by ASPA
in PA
on August 27, 2001
presented by ASPA
presented by ASPA
Subscribe to the Retirement Plans Edition, too (click)
Copyright 2001 BenefitsLink.com, Inc.
You may freely distribute this email newsletter in whole.
Click here to learn how your company can sponsor a future issue!
BenefitsLink is a registered trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
We're proud of our privacy policy .
To subscribe (free): visit https://benefitslink.com/newsletter - or the person desiring to subscribe can send an email to BLwelfare@add.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/