eBRIEFS Masthead
 
12/10 - In This Issue
HHS Issues Regulations on Medical Loss Ratios
FSA Plans Ease Pain of Health Care Costs
IRS Guidance Addresses ROTH Rollovers
The Case for Risk Management
Business Succession Planning
Legislative/Regulatory Updates


IRS Distributes Small Business Health Credit Guidance

The IRS recently released final guidance for small sized employers eligible to claim the new small business health care tax credit for the 2010 tax year.   Click here to continue.

 

Senate Fails to Repeal Health Care Reform Law 1099 Rule

Small employers have complained that the reporting burden of the health care reform law requirement, which is scheduled to go into effect in 2012, is too great.  Click here to continue.

 

EEOC Issues Final GINA Regs

The Equal Employment Opportunity Commission recently released final regulations implementing Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA). Although GINA was effective Nov. 21, 2009, these regulations do not take effect until Jan. 10, 2011.  Click here here to continue.

Question of the Week: HCR and ERISA

QUESTION: We have heard that health care reform requires our claims and appeals notices to be provided in a "culturally and linguistically appropriate manner." What exactly does that mean?  Click here for the answer.


Health Care Reform

 
HHS Issues Regulations on Medical Loss Ratios

 

HHS has issued interim final regulations addressing health care reform's medical loss ratio (MLR) requirements for health insurers (applicable to insurance coverage regardless of grandfather status). Under these rules, insurers are required to report to HHS on how they spend premium dollars and must provide rebates to enrollees unless at least 80 cents of each premium dollar--85 cents in the large group market--is spent on clinical services and health care quality improvement.  Click here to continue.

 

Feds Say Grandfathered Health Plans Can Change Insurers

Employers are allowed to change insurers without their health care plans automatically losing grandfathered status under the health care reform law, federal regulators said. In a reversal of their previous position, the Labor, Treasury and Health and Human Services departments said that forcing an employer to stay with an insurer to keep a health plan's grandfathered status would give that insurer an unfair advantage.  Click  here to continue.

 

Health Care Reform: The Changing Landscape

 

As part of a continuing series on the Patient protection and Affordable Care Act (PPACA), Aetna is providing information to help you understand the changing landscape of health care coverage.  Click here to continue.

 

Considerations for Preventive Care Coverage under Health Care Reform

As employers are well aware, the Patient Protection and Affordable Care Act requires that all plans that renew or have plan years that begin on or after Sept. 23, 2010 cover certain preventive care services with no member cost-sharing, with an exception for grandfathered plans.  Complying with this provision is much more complicated than simply not charging members for certain preventive care services.  Click here to continue.

  

Benefit Trends


FSA Plans Ease the Pain of Health Care Costs

Health care costs are not going away. One simple option employees have to pay for these costs on a pre-tax basis is through an employer-sponsored Health Flexible Spending Account (FSA). Employers get in on the savings, too. While this option may be simple, the administration is far from easy.  Click here to continue.

 

Fulfilling a Moral Obligation

When an employer sends its employees on trips, it has a moral obligation - and perhaps a legal obligation - to make them whole if they are injured while traveling or become seriously ill abroad and need to be returned to the U.S.  Click here to continue.

 

All Aboard

The advantages of educating employees about their benefits through technology are many: The information transmitted to their Web browser or smart phone is always up to date, it's scalable to any population, yet allows an employer to individually tailor information to an employee.  Click here to continue.

Dependents Under Scrutiny

Health care worries prompt rise in audits.  More employers are scrutinizing employees' health insurance dependents in order to weed out ineligible beneficiaries.  Click here to continue.

What's the Hard Return on Employee Wellness Programs?

Since 1995, the percentage of Johnson & Johnson employees who smoke has dropped by more than two-thirds. The number who have high blood pressure or who are physically inactive also has declined-by more than half. That's great, obviously, but should it matter to managers? Well, it turns out that a comprehensive, strategically designed investment in employees' social, mental, and physical health pays off. J&J's leaders estimate that wellness programs have cumulatively saved the company $250 million on health care costs over the past decade; from 2002 to 2008, the return was $2.71 for every dollar spent.  Click here to continue.

 

Retirement Plans

IRS Guidance Addresses In-Plan ROTH Rollovers

The IRS has issued a notice consisting of 20 questions and answers on various aspects of the Small Business Jobs Act of 2010 (SBJA) provision allowing Roth conversions to be made available within 401(k) plans as of September 27, 2010.  Click here to continue.

 

Labor Department Gets Tough

The Department of Labor filed lawsuits against 24 employers and individual-plan fiduciaries in a single day for diverting employee contributions that were intended for retirement and healthcare plans. A recent study showed that about seven in 10 employers fail to forward such contributions in a timely manner, as required by law.  Click here to continue.

 

DOL Proposes Rule to Amend Target-Date Fund Disclosures

The Department of Labor's Employee Benefits Security Administration issued a proposed rule aimed at providing participants in retirement plans with more information on how target-date funds operate.

 

Employer 401(k) Match a Powerful Motivator

 

The formula employers use for their matching contributions in their 401(k) plans serves as a strong cue to workers for how much to contribute.  Click here to continue.

 

Increased Longevity Changes the Work-Leisure Equation

 

Rising longevity is forcing France, Britain, Germany and other nations to boost their retirement ages to ease the burden on younger workers whose taxes must support the growing legions of long-lived retirees on public pensions. Similar considerations have led the United States to lift the age for collecting full Social Security benefits from 65, when the program was enacted in 1935, to 67 for workers born since 1960.  Click here to continue.

 

Study Reveals Average 401(k) Participant Can't Afford to Retire Until Age 73

The 6 month study by Nyhart reviewed nearly 10,000 retirement accounts from employees at 110 public and private companies.  The study evaluated how contributions to their 401(k), the primary retirement tool for most of these employees, would affect the age at which they could retire.  Click 
here to continue.

Risk Management Updates


The Case for Risk Management

Numerous emerging risks and many game changing events have altered the business landscape world wide over the past few years.  Now more than ever business have to implement and sustain effective risk management programs according to a recent article in USA Today.  Click here to continue.

Stress in today's Workplace: A NIOSH Study

The nature of work is changing at whirlwind speed.  Now more than ever before, job stress poses a threat to the health of workers and, in turn, to the health of organizations.  The National Institute for Occupational Safety & Health (NIOSH), highlights knowledge about the causes of stress at work and outlines steps that can be taken to prevent it.  Click here to continue.

 

Recent Trends in International Product Liability Litigation

The United States courts collectively are becoming the "world's courthouse."  Attracted by the high quality and efficiency of U.S. courts, the increasing willingness of U.S. courts to exercise jurisdiction over international disputes, and the perception that larger damage awards and punitive damages may be available in U.S. courts, non-U.S. litigants are filing cases in U.S. courts with increasing frequency. U.S. companies named as defendants traditionally reacted to such lawsuits by filing motions to dismiss in favor of the non-U.S. courts based on the doctrine of forum non conveniens. However, changed conditions in many countries have now made such motions much more difficult or, worse, ill-advised.  Click here to continue.


Of Interest

 

Business Succession Planning

When developing a succession plan for your business, you must make many decisions. Should you sell your business or give it away? Should you structure your plan to go into effect during your lifetime or at your death? Should you transfer your ownership interest to family members, co-owners, employees, or an outside party?  The key is to pick the best plan for your circumstances and objectives, and to seek help from financial and legal advisors to carry out this plan.  Click here to continue.

  
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