Health & Welfare Plans Newsletter
June 18, 2009
\ Compliance \ Costs \ Administration \ Design \ Policy
International Foundation of Employee Benefit Plans
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What Eileen Maraldo values about her International Foundation membership:
"The research capabilities of the Foundation are huge. My executives asked me to research a benefit for which there was a lack of readily available information. So I called the Foundation and made a request to have it researched. Within a few days I had all of the information I could possibly have wanted. I was able to make a presentation to senior management with all the facts. I don?t think I could have gotten it any other way."
What Eileen Maraldo values about her International Foundation membership:
"The research capabilities of the Foundation are huge. My executives asked me to research a benefit for which there was a lack of readily available information. So I called the Foundation and made a request to have it researched. Within a few days I had all of the information I could possibly have wanted. I was able to make a presentation to senior management with all the facts. I don?t think I could have gotten it any other way."
[Guidance Overview]
Update on Health Care Reform Legislation: Senate HELP Committee Bill (PDF)
7 pages. Excerpt: "Last week, the Senate Health, Education, Labor, and Pension Committee ('HELP Committee') released its draft of health care reform legislation in the form of a 615-page bill. The HELP Committee bill includes insurance market reforms that would affect individual and group insurance policies, some provisions that apply to self-funded plans, a new state 'Gateway' program through which individuals could obtain coverage from private insurers (and potentially a public plan option), a new requirement for individuals to obtain coverage, and new employer mandates. [This summary] highlights the major provisions that would impact employer health plans (the bill also includes provisions more directly applicable to health care providers)." (Groom Law Group)
[Guidance Overview]
New IRS Q&As Related to COBRA Premium Subsidy (PDF)
3 pages. Excerpt: "Recently, the IRS issued nineteen new Questions and Answers ('Q&As') that provide additional guidance on the COBRA subsidy. In these Q&As, the IRS addresses some of the more difficult COBRA subsidy issues that employers and plan administrators may encounter . . . ." (Groom Law Group)
[Guidance Overview]
Health Plan Participant's Emotional Distress Charge Preempted by ERISA
Excerpt: "The U.S. District Court for the District of New Hampshire has dismissed an employee's charge that her employer negligently inflicted emotional distress on her by long delays and not responding to her inquiries when processing her medical claims. The court pointed out that both parties agreed that Louise Polley's Harvard Pilgrim Health Care Inc. medical benefits were provided under an Employee Retirement Income Security Act (ERISA) plan. 'ERISA preempts all state laws that 'relate to' employee welfare benefit plans,' Chief Judge Steven J. McAuliffe wrote in the court opinion. He rejected Polley's argument that she was not claiming a loss of benefits, but was asserting that Harvard Pilgrim knew or should have known she was emotionally vulnerable and its handling of her claims would make her condition worse. According to the opinion, Polley sued Harvard Pilgrim in state court for negligent infliction of emotional distress." (PLANSPONSOR.com; free registration required)
Exchange-Traded Funds Target 401(k) Plans
Excerpt: "ETFs may seem more attractive to plan sponsors, given current market conditions, but there is much for them to consider before adding these products to their plans." (Workforce Management)
Sweeping Health Care Reform Legislation's Debut Draws Ire of Employers
Excerpt: "But underneath the bristling, employers are trying to figure out what a good compromise might look like on key issues including taxing health benefits, employer mandates and a government-run option." (Workforce Management)
Should Health Care Come with a Warranty?
Excerpt: "Warranties are commonly used in various industries to protect consumers against faulty products, but they are rare in health care. This study finds that warranties could improve the care that patients receive while enabling medical providers to improve their profit margins." (The Commonwealth Fund)
How Obesity Drives Poor Health and Health Spending in the U.S. (PDF)
16 pages. Excerpt: "In the period 1997 to 2006, the number of working-age adults who report being diagnosed with at least 1 of 7 major chronic conditions (heart disease, hypertension, stroke, diabetes, emphysema, asthma and cancer) grew by 25% to a total of nearly 58 million. The CDC reports that more than 133 million Americans -- 45% of the total population -- have at least one chronic disease. Chronic diseases kill more than 1.7 million Americans yearly, and account for a third of years of potential life lost before age 65. This policy brief summarizes previous research and presents new evidence of the role obesity plays in rising rates of chronic disease and health spending." (National Business Group on Health)
Employers Want Lawmakers to Focus on Health Care Cost and Service Quality, According to Survey
Excerpt: "A survey of benefits professionals showed concern that health care reform proposals may do more harm than good. A news release from Miller & Chevalier Chartered and the American Benefits Council (ABC) about their second annual Corporate Health Care Policy Forecast Survey said respondents contended lawmakers are not paying enough attention to service quality and costs in formulating policy changes. Fifty-one percent of respondents said they would like to see more focus on cost and 72% would like more focus on quality issues, the press release said." (PLANSPONSOR.com; free registration required)
Obama's Health Plan Needs Spending Controls, CBO Says
Excerpt: "President Obama's plan to expand health coverage to the uninsured is likely to dig the nation deeper into debt unless policymakers adopt politically painful controls on spending, such as sharp reductions in payments to doctors, hospitals and other providers, congressional budget analysts said . . . ." (The Washington Post; free registration required)
Health Insurers Refuse to Limit Rescission of Coverage
Excerpt: "Executives of three of the nation's largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive. The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation's healthcare system." (Los Angeles Times)
Report, Surveys Begin to Flesh Out Details on Health Care Reform
Excerpt: "Analysis is incomplete because the Kennedy proposal has not yet included details on issues that employers oppose, like a public plan option, taxing health benefits, changing ERISA or an employer mandate." (Workforce Management; free registration required)
[Opinion]
The Sleeper in Health Reform: Insurance Market Reforms Such As Eliminating Medical Underwriting
Excerpt: "Insurance market reforms are quite possibly the least controversial of all the issues in health reform, which is maybe why they've gotten less attention. But, they may also be the sleeper in the debate, at least for the public. Why is that? First, they directly address some of the biggest insecurities people have about health care, particularly in the current economy with millions losing their jobs and likely their health coverage as well." (Kaiser Family Foundation)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Clarification and Softening of IRS 'Crackdown' on Taxation of Business Cell Phones and PDAs (PDF)
5 pages. Excerpt: "The IRS Commissioner has indicated a very significant change in IRS direction on this issue with the successive release of IRS Notice 2009-46 last week and his important statement [on June 16]. The extent of this shift in the IRS position is demonstrated when it is placed within the context of the IRS audits that have created this compliance nightmare." (Morgan, Lewis & Bockius LLP)
Administration Proposal for Financial Regulatory Reform Contains Several Items Related to Executive Compensation
Excerpt: "{Example:] Under the topic 'Promote Robust Supervision and Regulation of Financial Firms,' and the subheading 'Strengthen Capital and Other Prudential Standards Applicable to All Banks and BHCs,' the Administration repeats its intention (from the June 10 proposal) to focus on five principles to better align compensation practices with the interests of shareholders and the stability of firms and the financial system." (Michael Melbinger via Winston & Strawn LLP)
Alabama Cancels Deferred Compensation Plan with Nationwide
Excerpt: "The State Personnel Board cited a lack of financial transparency Wednesday when it canceled a contract with Nationwide Retirement Solutions to provide a deferred compensation plan for active and retired state workers in Alabama. The board voted 3-0 to cancel the contract, with board members saying the company is not providing financial information they want." (AP via Forbes.com)
Obama Backs Extension of Benefits to Same-S.ex Partners of Federal Employees
Excerpt: "President Obama on Wednesday directed the Office of Personnel Management to extend long-term care benefits and family and parental leave to the same-s.ex partners of g.ay and les.bian federal employees, and ordered agencies to conduct internal reviews to identify other benefits that they could extend as well. . . . Obama stopped short of granting employees' domestic partners access to health care benefits, saying he legally could not do so, but endorsed legislation that would provide such benefits." (GovernmentExecutive.com)
Press Releases
Investment Advice, 401(k) Fee Legislation Improved but Additional Safeguards for Employers Still NeededAmerican Benefits Council
President Obama to Announce Comprehensive Plan for Regulatory Reform
U.S. Department of Treasury
Will the 64% Increase in Business Bankruptcies Create More Abandoned Retirement Plans?
Penchecks, Inc.
McGraw Wentworth Mid-Market Group Benefits Survey: West Michigan Employers Keep Health Care Cost Increases Below National Trend
McGraw Wentworth
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EmployeeBenefitsJobs.com (Sponsor)
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Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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