BenefitsLink
Health & Welfare Plans
Newsletter
September 10, 2007
Here are the Web's best new links about compliance and cost
aspects of plan operation, design and policy.
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Official Guidance; News
GM, Ford Likely to Establish Health Care Trust Fund, According to AnalystExcerpt: "General Motors Corp (GM.N) and Ford Motor Co (F.N) are likely to establish a trust fund for health care costs that would be administered by the United Auto Workers union, JP Morgan analyst Himanshu Patel said [today]." (The Washington Post; free registration required)
New York Holds First Hearing on Health Care Reform
Excerpt: "Nearly 200 New York state residents and members of the health care industry on Wednesday met to discuss potential plans to overhaul the state's health care system, the Albany Times Union reports. The hearing -- the first in a series of six hearings to be held around the state on the topic, called 'Partnership for Coverage' . . . ." (Kaiser Family Foundation)
Mental Health Parity Reform Nears Passage
Excerpt: "There are two bills pending in the House and Senate to reform the Mental Health Parity Act of 1996 . . . . Under the bills, health plans could not impose different treatment limitations and financial requirements on mental health/substance abuse benefits than on medical/surgical benefits. The parity requirements would apply to all plans that offer mental health and substance abuse benefits. Debate has been focused on three broad issues: ERISA preemption, mandated benefits and medical management practices." (Watson Wyatt Worldwide)
California's Ambitious Health Plan Stalls
Excerpt: "After losing much of August to a budget impasse, state lawmakers and Gov. Arnold Schwarzenegger have been unable to reach agreement on a proposal to extend health coverage to all uninsured Californians, raising the possibility of a special session of the Legislature and a statewide ballot measure." (The New York Times; free registration required)
Summary/Analysis of Official Guidance
Neither Make-Whole Nor Pro Rata Doctrine Defeated Plan's Right to Be Reimbursed from Special Needs TrustExcerpt: "EBIA Comment: Many states' insurance laws restrict insurers' reimbursement or subrogation rights where the insured has not been made whole. Insured ERISA plans are subject to these state laws to the extent the laws are 'saved' from ERISA preemption. And although these state laws do not apply to self-insured ERISA plans (like the plan in this case), some federal courts (unlike this one) have created a 'federal common law' that fills the gaps in ERISA and applies the make-whole doctrine . . . ." (Employee Benefits Institute of America)
Overview: Massachusetts Health Care Act Update: New Guidance on the Cafeteria Plan Filing and Other Requirements
Excerpt: "On September 5, 2007, the Connector provided some answers -- and such answers may make life a bit easier. By way of an Administrative Bulletin, the Connector has answered the following questions: What is an employer's filing requirement with regard to the section 125 cafeteria plan required by the Act? Which student employees may be excluded from the section 125 cafeteria plan required by the Act? What is the definition of Independent Contractor under the Act?" (Kirkpatrick & Lockhart Preston Gates Ellis LLP)
Regulators Review Proposed Sec. 125 Rules
Excerpt: "From Spencer's Benefits Reports: At a recent program sponsored by ALI-ABA (American Law Institute-American Bar Association), speakers from the Internal Revenue Service and the Treasury Department clarified aspects of the proposed IRC Sec. 125 cafeteria plan regulations and asked for comments on other issues." (Wolters Kluwer Law & Business)
Trends; Surveys; Research
HSAs Fail to Appeal to EmployeesExcerpt: "According to a recent report, HSAs don't benefit lower-income participants, nor have they led to reduced health-care costs as proponents anticipated. HR needs to better communicate -- and better tailor such plans -- to the varying employee cultures and demographics." (Human Resource Executive Online; free registration required)
Firms' Freebies Help Perk Up Employee Retention
Excerpt: "Each year, Fortune magazine comes out with a list of the best places to work. Each year, most of the companies on the list offer extras that go beyond free coffee and complimentary fanny packs emblazoned with the company logo." (The Des Moines Register)
Interview: A Drug Maker's Views of What Ails Health Care
Excerpt: "Daniel L. Vasella, chief executive of Novartis, the $39 billion pharma.ceutical giant based in Switzerland, says that even though Americans have made progress in curing some diseases, they face a major increase in obesity- and aging-related diseases. Mr. Vasella recently discussed these challenges and criticized the Food and Drug Administration in the United States for failing to act more quickly to approve new drugs." (The New York Times; free registration required)
Big Savings Have More Overseas Travelers Mixing Surgery with Sightseeing
Excerpt: "The reputation of outstanding U.S. hospitals has long drawn wealthy patients from around the world. But today, traffic also heads in the opposite direction. It's a trend that quietly has been expanding well beyond facelifts, tummy tucks and dental crowns to embrace all sorts of non-emergency treatments." (The Washington Post; free registration required)
Some Companies Penalize for Health Risks
Excerpt: "First they tried nudging. Now companies are penalizing workers who have high health risks such as obesity and high blood pressure or cholesterol as insurance costs climb." (AP via The Washington Post; free registration required)
Links to Items on Executive Comp, Benefits in General
CRS Report for Congress: Older Workers -- Employment and Retirement Trends (Updated Sept. 7, 2007) (PDF)
19 pages. Excerpt: "Several approaches to phased retirement -- job sharing, reduced work schedules, and rehiring retired workers on a part-time or temporary basis -- can be accommodated under current law. Under the recently enacted Pension Protection Act, a pension plan can begin to pay benefits to workers who have not yet separated from the employer at the earlier of age 62 or the pension plan's normal retirement age, which in most plans is 65. Some employers would like to be able to pay partial pension distributions to workers who have reached the pension plan's early retirement age. This would require a change in federal law." (Congressional Research Service, U.S. Library of Congress)
De Facto Plan Administrator Theory Does Not Apply to TPAs
Excerpt: "EBIA Comment: Other circuit courts have flatly rejected the de facto plan administrator theory and will strictly adhere to the plan document's designation of which person or entity serves as plan administrator. But even in the circuits where the de facto theory is viable, the courts have not extended the theory to TPAs or other ERISA plan service providers." (Employee Benefits Institute of America)
Social Security May Hit Red by 2017
Excerpt: "Rumors of the death of Social Security have not been exaggerated, Charles Blahous, special assistant to the president for economic policy said . . . ." (Investment News; free registration required)
Policy; Opinion; Advocacy
Opinion: Health Care Can No Longer Be a Commodity for Sale to Those Who Can Afford ItExcerpt: "There is only one 'real' solution for the problem, and that solution is to remove 'for-profit' from the healthcare equation. And I am the only candidate who has proposed that solution." (Rep. Dennis Kucinich via Modern Healthcare via Physicians for a National Health Program)
Report: Health Care 20 Years from Now: Taking Steps Today to Meet Tomorrow's Challenges
38 pages. Highlights of a forum convened by the comptroller general of the United States. (U.S. Government Accountability Office)
Presentation by the Comptroller General: Fiscal and Health Care Challenges (PDF)
31 pages. Presentation by David M. Walker, comptroller general of the United States, at the HR Policy Association's Washington Policy Conference, in Washington, D.C. (U.S. Government Accountability Office)
New AHIP Report Takes Ten Year Look at Unintended Consequences of State Efforts to Change Insurance Market
49 pages. Excerpt: "As states consider proposals to expand access to health care coverage, a new study assesses the impact of prior efforts in states across the country. Over the past decade, numerous states have launched 'insurance reforms' with significant unintended consequences. A number of these initiatives were repealed or significantly changed within a few years of implementation. The study by Milliman, Inc. on behalf of America's Health Insurance Plans (AHIP) examined what happened. " (America's Health Insurance Plans)
Newly Posted Events
Free Workshop In Aurora, Colo., For Licensed Brokers, Agents, ERISA Consultants And Third-party Administrators
in Colorado on September 11, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Newly Posted Press Releases
Mercer HR Services and Financial Engines Expand Alliance
Mercer Human Resource Consulting
Reliance Trust to Provide Custodian Services for BenefitStreet's ETF 401k Platform
BenefitStreet, Inc.
U.S. Labor Department Wins Summary Judgment Against Framingham, Massachusetts, Employer, Requiring Him To Restore Funds To Company 401(k) Plan
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Obtains Appointment Of Independent Fiduciary For Abandoned 401(k) Plan Of New York City Company
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Victory Capital Management Launches New Retirement Plan Share Class
Victory Capital Management
Teamsters Applaud Spitzer Executive Order to Stop Employee Misclassification
International Brotherhood of Teamsters
Fidelity Launches Online Retirement Income Planning Tool For Financial Advisors
Fidelity Investments
Now Available From ArmadaCare In Partnership With Transamerica Affinity Services: A Revolutionary, New Executive Medical Reimbursement Program That Coordinates WIth Any Underlying Health Plan
ArmadaCare
Next Generation Medical Reimbursement Now Available In The State of New York
ArmadaCare
New York Appellate Court to Hear Precedent-Setting Case on Interstate Recognition of Same-Sex Spousal Unions
Gibson, Dunn & Crutcher LLP
Another Firm Drops Traditional Pension Plan in Favor of 401k
Boston Globe
Newly Posted or Renewed Job Openings
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Handy Links:
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