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A free monthly newsletter for plan sponsors and employee benefits 
professionals published by The Benefit Services Group, Inc.

It’s About Time (and Money): The Value of Absence Management to Employees and Employers
EXCERPT: "In an era of constant belt tightening, it is important for employers to focus on paid time away from work, traditionally the highest component of payroll after wages and salaries. This Executive Letter discusses absence management — a broad approach to managing all planned and unplanned time off — and outlines an issue-identification process that employers may want to pursue before deciding on a course of action."
Request a copy of this article 
December, 2003—The Segal Company 

HIPAA Raises Administrative Concerns Surrounding FSAs
EXCERPT: "This past September, the IRS published guidance that allows an employer, for the first time, to make over-the-counter drugs available to its employees on a pre-tax basis. To stay competitive, many employers are already taking steps to cover over-the-counter (OTC) drugs under existing flexible spending account plans, which generally enable employees to pay for prescription drugs on a pre-tax basis. And employers without flexible spending accounts, or FSAs, are now considering these programs for the first time."
Full Article
December 15, 2003—Boston Business Journal 

Health Care Spending Growth Slows Sharply in First Half of 2003
EXCERPT: "The 1.5 percentage point decline in health care spending growth in the first half of 2003 was the largest six-month drop since the early 1990s. Nonetheless, health care spending in the first six months of 2003 grew nearly three times faster than growth in the overall economy, as measured by 2.9 percent growth in per capita gross domestic product (GDP) during the same period."
Full Article
December 12, 2003—Center for Studying Health System Change

Treasury Issues Guidance To Encourage Use Of New Innovative Health Savings Accounts ("HSAs")
EXCERPT: "The Treasury Department and the Internal Revenue Service today issued guidance regarding the new and innovative Health Savings Accounts (HSAs). HSAs were created by the Medicare bill signed by President Bush on December 8th and are designed to help individuals save for qualified medical and retiree health expenses on a tax-free basis....Today’s guidance (Notice 2004-2) provides, in a question and answer format, information about what HSAs are, who can have HSAs, how to establish them and the basic rules for contributions and withdrawals from HSAs."
Full Article
December 22, 2003—U.S. Department of the Treasury

Following is a small sample of the data available on employee compensation costs. These figures reflect measurements as of September, 2003.

Wages and Salaries 
Benefits 
Paid leave
Supplemental pay 
Insurance 
Health Benefits
Retirement & Savings 
Defined benefit 
Defined contribution 
Legally required 
Other benefits

72.1%
27.9
6.5
2.8
7.0
6.5
3.0
1.2
1.8
8.5
0.1

By providing links to other sites, The Benefit Services Group, Inc. does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to The Benefit Services Group, Inc.

The preceding is not intended to be and is not offered as legal advice. We are prohibited from the practice of law. Compliance is the responsibility of the employer or Plan sponsor and affected employees, who should seek their own legal counsel regarding questions about information presented in this newsletter.

PlanAhead Direct is a monthly newsletter provided free of charge to select BSG® client representatives and associates. View and search back issues at www.bsg.com/news/index.htm. 

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Copyright 2004 The Benefit Services Group, Inc. BSG® is a registered trademark of The Benefit Services Group, Inc.

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