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

Treasury and IRS Issue Indexed Amounts for Health Savings Accounts
EXCERPT: "The Treasury Department and IRS today issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs. The minimum deductible required for HDHPs did not change."
Full Article
November 19, 2004—U.S. Department of the Treasury 


National Survey on Consumers' Experiences With Patient Safety and Quality Information
EXCERPT: "In general, people do not trust their employers to give them good information on health plans. In fact, the public’s trust in employers for health plan information has declined over the past eight years. 
• About seven in ten (69%) say they do not trust what employers say about health plans because employers’ main concern is saving company money on health benefits. Slightly fewer said the same in 1996 (58%) and 2000 (61%).
• One in four (25%) say that employers are a good source of information about the quality of different health plans because employers examine plans closely when deciding which ones to offer. The public was more likely to hold this view in 1996 (36%) and slightly more likely to hold this view in 2000 (29%)."
Full Article
Summary & Chartpack 
November 17, 2004—The Henry J. Kaiser Family Foundation 


Who Will Manage Employee Health?
EXCERPT: "An annual survey suggests employers are ambivalent about consumer-directed health plans (CDHPs). Short-term, CDHPs appeal to employers who need to shift the crippling burden of health costs onto employees. Longer-term, many employers want to integrate their health plans into health and productivity management (HPM) initiatives."
Full Article
November 2004—Risk & Insurance 

Taking Advantage of Open Enrollment
Here is timely information to share with your employees. This page includes a checklist of general reminders, plus links to an online Health Expense Calculator, "My Health Wizard"— a tool to help gauge what aspects of a plan are most important to an individual's situation, and some nuts-and-bolts information on health insurance plans. 
Full Article
November 2004—PlanforYourHealth.com, a partnership of Aetna and The Financial Planning Association.

Effect of the Working Families Tax Relief Act of 2004 on employer-provided accident or health plans:  Clarification of Section 106 – Definition of Dependent

A few weeks ago, BSG^® sent out an update on the Working Families Tax Relief Act of 2004 (WFTRA) and indicated that clients should delay addressing the Act’s provisions as it created unintended consequences needing to be resolved.  Recently, there has been additional guidance issued that further clarifies WFTRA.

WFTRA features amendments to Sections 152 and 105 of the tax code.  These Sections clarify the way employer-provided benefits and medical care reimbursements paid to employees and their dependents are valued.  Under each Section, definitions are provided for determining who qualifies as a dependent.  By having these amendments conform under WFTRA, the current tax treatment of dependent benefits remains intact.
More

For More Information:

A brief summary of WFTRA put out by the House of Representatives’ Committee on Ways and Means 

For a more detailed summary of WFTRA, please see the following document at the National Association of Tax Professionals’ website:  

Link to the Notice 2004-79.

Link to the actual WFTRA. 

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/PADirect/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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