---

Sponsored by: Employee Benefits Institute of America Inc. (EBIA)

(Click on company name or banner to learn more.)

---

Overview: New York Extends Health and Welfare Benefit Eligibility to Employees' Same-Sex Spouses
Excerpt: "The State of New York, effective May 1, 2007, has started recognizing its employees' same-sex spouses as eligible to participate in the state's health and welfare benefit plans. However, federal law still does not recognize a same-sex spouse as a 'spouse,' so New York State employees who enroll their same-sex spouses in these plans still will have to include the value of these benefits in their gross incomes for federal income tax purposes." (Deloitte)

The Prevalence and Cost of Select Chronic Diseases (PDF)
Excerpt: "This report discusses the prevalence of diabetes, cardiovascular disease, depression, asthma, and cancer. In addition, estimates of the increased costs associated with these diseases are discussed." (The Lewin Group)

Disabilities Fewer, But Last Longer
Excerpt: "People are less likely to suffer a disability now than in the 1970s and 1980s, but the disabilities last longer now, according to research (http://www.life-line.org/build/press050107/index.php?pt=ps042407&m=press&ps=ps) by the Life and Health Insurance Foundation for Education (LIFE)." (Employee Benefit News)

Overview: Washington State Creates Family Leave Insurance Program
Excerpt: "The Program provides benefits for employees who work for a broad range of employers, including 'any individual or type of organization, ... partnership, association, trust, estate, joint stock company, insurance company, or corporation, whether domestic or foreign ... having any person in employment.'" (Kirkpatrick & Lockhart Preston Gates Ellis LLP)

Employee-Employer Partnership Changing
Excerpt: "The nature of employee-employer relationships is evolving. There is likely to be further customization of benefits (flex benefits) to meet the diverse needs of the changing work force (e.g., four generations in the work force)." (The Ocala Star-Banner)

Health Costs Soar, Squeeze Localities in Massachusetts
Excerpt: "Employee healthcare costs in cities and towns shot up about 85 percent, from an average $2.5 million to $4.7 million, from 2001 to 2006, according to a Globe analysis of budgets from 324 communities, using data from the Massachusetts Department of Revenue." (The Boston Globe via Blue Cross and Blue Shield Association)

Deadline for Complying with National Provider Identifier Standard is May 23, 2007
Excerpt: "Although health care providers are responsible for obtaining NPIs, the deadline is relevant to health plans (other than small plans, which have a May 23, 2008 compliance deadline), too. For example, health plans need to modify their systems to use the NPI by this deadline and reach out to their health care providers to make certain they have obtained their NPIs." (Deloitte)

Opinion: Customer Health Care
Excerpt: "Thousands of free-standing primary care clinics have been operating for years in malls and main streets around the country, often staffed by physicians and many offering a broad range of health services. The retail health clinics are creating a new model with more limited services at lower prices and almost always staffed by nurses." (The Wall Street Journal via Galen Institute)

'Blue Cross to Settle Case in Class Action' - Article and Comments on 'Rescission'
Excerpt: "Blue Cross of California -- under scrutiny for retroactively canceling health insurance policies leaving patients with unpaid medical bills -- has agreed to a class-action settlement that would sharply alter its practice and could set a precedent for other insurers." (USA TODAY via Physicians for a National Health Program)

Working Paper Abstract: Worker Sorting, Taxes and Health Insurance Coverage
Excerpt: "We develop a model in which firms hire heterogeneous workers but must offer all workers insurance benefits under similar terms. In equilibrium, some firms offer free health insurance, some require an employee premium payment and some do not offer insurance." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)

Opinion: Tearing the Mask Off the Massachusetts Healthcare Scam
Excerpt: "[T]he state made it ridiculously easy for employers to evade that meager cost. All they have to do is cover one of four employees, or offer to pay a third of their employees' premium costs, no matter how bad the plans, to be exempted from the fee. And, the employer trade groups which lobbied against the fee quickly offered counseling for employers on how to avoid paying any fees." (The Huffington Post)

Consumer-Driven Plans Don't Have Seal of Approval Under Massachusetts Health Reform Law
Excerpt: "High-deductible health insurance plans linked to a health savings account or health reimbursement arrangement are not being sold in the Commonwealth Health Insurance Connector, said spokesman Dick Powers, referring to consumer-driven plans." (BestWeek via The Foundation for Taxpayer & Consumer Rights)

Opinion: The Market's the Problem with Health Care
Excerpt: "The . . . commentary by FTCR President Jamie Court, was broadcast on Thursday, May 10th, 2007 on American Public Media's Marketplace program on NPR." (Marketplace via National public Radio)

Online Health Education Leads Cost and Quality Measures
Excerpt: "Implementing online health care tools was the most common health care cost and quality initiative in a recent Aon Consulting survey, with 21% of organizations newly offering this resource to employees in 2007." (PLANSPONSOR.com; free registration required)

IRS Says HSA Contribution Cap to Rise in 2008
Excerpt: "The maximum contribution that employees can make to a health savings account . . . will increase by $50 in 2008 and the highest amount out-of-pocket expenses employees can be required to pay will also climb, the Internal Revenue Service announced, Business Insurance reported." (PLANSPONSOR.com; free registration required)

Meeting the Long-Term Care Needs of the Baby Boomers: Families, Helpers, and Institutions (PDF)
61 pages. Excerpt: "This study projects to 2040 the number and percentage of people ages 65 and older with disabilities and their use of long-term care services. The analysis combines new results from models of current long-term care use with simulations of the size and characteristics of the future population." (The Urban Institute)

---

Links to Items on Executive Comp, Benefits in General

Chrysler Deal Carries a Test for the U.A.W.
Excerpt: "By unwinding a nine-year-old merger between Chrysler and Daimler-Benz of Germany, Cerberus is also taking on Chrysler's $18 billion obligation for health care and pensions for employees and retirees. Any efforts to sharply reduce those perks -- which Chrysler can afford but says represent a cost burden of $1,500 a vehicle -- will probably put it at odds with the U.A.W." (The New York Times; free registration required)

Overview: IRS Guidance to Assist Tax-Exempt Organizations in Completing Form 990 (PDF)
3 pages. Excerpt: "Although the IRS released the new Guidance in the form of a question-and-answer document just weeks before most tax-exempt organizations will file their Form 990s, it can help clarify questions relating to board structure, when to report compensation for directors and officers who have relationships with other organizations, when and how to report compensation for all 'disqualified persons,' and relationships between directors and other insiders." (Powell Goldstein LLP)

GAO Report Looks At Employers' Efforts to Control Benefit Costs
Excerpt: "The GAO Report provides a useful overview of employer-sponsored benefits, how health and retirement benefits have evolved, and the types of changes employers have been making to these benefits in order to manage costs." (Deloitte)

(ADV) Welcome to New Advertiser WinMill Software
Excerpt: "Has your benefit fund outgrown your computer systems? If so, you're not alone. Most benefit funds today are running on computer systems that are five or more years old, and are finding that their systems no longer effectively support their operations. With increased participation, reduced capitalization, ever-changing regulatory requirements and benefit plan changes, computer systems have simply not been able to keep up. Request a free 2-day evaluation of your computer systems!" (BenefitsLink.com)

---

Newly Posted Events

Basics of Health and Welfare Plans
in California on May 22, 2007
presented by No. Calif. Chapter of Certified Employee Benefits Specialists (ISCEBS)

---

Newly Posted Press Releases

Sierra Nevada Brewery Derives Value From Outsourcing Total Rewards Statements to Benefit Software Inc.
Benefit Software Inc.

The ESOP Association Honors Members for Excellence in 'Employee Ownership' Communications
ESOP Association

Employers Not Doing Enough to Meet Workforce Retirement and Recruitment Needs, Says Aon Consulting Survey
Aon Consulting

ASPPA and DOL Jointly Host Employee Benefits Conference
American Society of Pension Professionals & Actuaries (ASPPA)

Investor Alert From Cauley Bowman Carney & Williams, PLLC: Update on Proposed Acquisition of Bisys Group, Inc.
Cauley Bowman Carney & Williams

---

Newly Posted or Renewed Job Openings
( Post a Job | View All Jobs )

Tax/Employee Benefits Attorney
for Harter Secrest & Emery LLP
in NY

Senior ERISA Attorney
for Citigroup Inc.
in NY

Plan Document & Administrative Consultant
for Southern Pension Services
in FL

Client Relationship Consultant - Chicago / Itasca, IL
for Gallagher Retirement Services
in IL

Service Delivery Manager
for JPMorgan Retirement Plan Services
in CO, KS, MO

DB Conversions QA Analyst
for New York Life Retirement
in MA

Bilingual Strategic Communications Consultant
for New York Life Retirement
in MA

VP of Training and Development
for New York Life Retirement
in MA

Retirement Services Marketing and Communications Writer
for Administaff
in TX

Professional sales rep for HR and Benefits (401K/FSA)
for PAYCHEX INC.
in NY

---

Handy Links:

• View Today's Active Message Threads
• Using the Web for Employee Benefits Research (hypertext article)
• Employee Benefits Library

---

---

Subscribe to the BenefitsLink Retirement Plans Newsletter, Too!

Sign-up form is at https://benefitslink.com/newsletter (free).

---

This newsletter is sent to you each workday except federal holidays.

This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

David Rhett Baker, J.D., Editor

Copyright 2007 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.

Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/

Other useful links:

• How to Sponsor an Issue
• Privacy Policy
• Archive of Previous Newsletters