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

Lessons Learned From CDHC Plans Discussed by Researchers
EXCERPT: "To achieve its stated promise, consumer-driven health care (CDHC) plans have to appeal to a broad cross section of employees and be priced competitively to traditional health plans, according to researchers who presented their findings at a recent meeting of the International Foundation of Employee Benefit Plans in Washington, D.C." Full Article
May 2004—Thompson Publishing Group

Prescription Use Down When Co-payments Rise: Study
EXCERPT: "Sharp increases in out-of-pocket prescription drug payments could cause people to reduce the use of medications for chronic diseases, such as asthma and diabetes, and may lead to more costly medical problems, a study released Tuesday said."
Full Article
May 18, 2004—MedlinePlus

Treasury Clarifies Interaction Of Health Savings Accounts With Other Employer-Provided Health Reimbursement Plans
EXCERPT: "Today Treasury and the IRS issued Revenue Ruling 2004-45 which clarifies how health Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs) interact with Health Savings Accounts (HSAs). The guidance provides a number of ways that individuals may have access to benefits from FSAs and HRAs and remain eligible to contribute to an HSA."  Full Article
May 11, 2004—U.S. Department of the Treasury

New Health Plan Rounds Into Shape: Coverage Rewards Wellness
EXCERPT: "Young drivers with good grades get discounts on their car insurance. And homeowners with smoke detectors save money on their property premiums.

So Doug Short wanted to know: Why shouldn't workers with healthy lifestyles pay less for health insurance? And why can't employers cut their health plan costs by encouraging more employees to shape up?

The president of BeniComp Inc., a Fort Wayne-based health plan administrator, has applied for a provisional patent on the concept, which he and his patent attorney say is unique in the U.S. health insurance industry.

Although offering a wellness plan is nothing new, Short's strategy comes with a twist: Employees who prove they meet certain criteria receive a financial reward - credit toward their deductibles.

And by keeping the discounts contained in the health insurance program, the payments are not subject to income taxes, unlike the bonuses some companies give workers who meet wellness standards, Short said."
Full Article
Sept. 1, 2003—Benicomp

Employee Education

This Spring marked the beginning of a new employee education program for BSG® clients called Benefits Buzz. Employers will be happy to find a similar resource is offered by the publication Employee Benefit News (EBN) via its website: Benefitnews.com. 

EBN offers benefits education articles in downloadable pdf format for employee- consumers. Employers are free to distribute these articles to their employees at no charge. EBN stipulates that the articles must be used exclusively for workforce education and can not be repackaged in any way for commercial purposes.

Some of the titles available include:

• How to spend your health care dollars wisely 

• Preparing to Live to 100: Five Money- Saving Steps 

• How to make FSAs work for you 

• Doing doubletime: Coping with work and eldercare 

Check it out at http://www.Benefitnews.com, and click on the "Employee-Consumer" link under "Channels" on the left side of the page.

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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