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

Hewitt Survey Shows Employers Making Efforts to Reduce 401(k) Costs
EXCERPT: "'Recent investigations into the mutual fund industry have brought 401(k) fees into the spotlight,' said Pamela Hess, a defined contribution consultant at Hewitt Associates. 'It’s encouraging to see that many employers are trying to understand how these costs are financially impacting their employees and that they are taking steps to reduce them.'

Because fund expenses make up most of a 401(k) plan’s total cost, Hess said the selection of funds is a key component in keeping costs low. According to Hewitt’s survey, 6 in 10 employers said they offer low-cost institutional funds as a way to reduce 401(k) plan costs."  Full Article
June 10, 2004—Hewitt Associates LLC


MCOs' Strategies to Slow Imaging Costs Are Starting to Take Effect, Radiology Firms Say
EXCERPT: "Over the past few years, health insurers have begun introducing a variety of techniques aimed at slowing the sharp rate of increase in imaging costs for MRIs, CT scans, positron emission tomography (PET) and other technologies. Now, owners of freestanding imaging centers say these initiatives are starting to affect their bottom line.

Strategies used by managed care companies to slow unnecessary utilization of these procedures include higher enrollee copays for more expensive imaging services, precertification or preauthorization requirements for such procedures and restricted imaging networks."  Full Article
June 7, 2004—AISHealth.com


DOL Issues Technical Corrections to Final COBRA Regulation and Model Election Notice
EXCERPT: "Plan administrators wishing to use the DOL's model election notice should be sure to obtain a copy of the model that contains the correction noted above. This is an important, substantive correction, and use of the uncorrected model election notice could limit the circumstances in which a plan would be permitted to terminate COBRA coverage before the end of the maximum coverage period."  Full Article
June 24, 2004—EBIA: Employee Benefits Institute of America Inc.

National Study of the Changing Workforce

"Highlights of The 2002 National Study of the Changing Workforce" from Families and Work Institute finds large-scale transformations taking place in the work and home lives of American men and women.

Among the study's key findings:

Flexible work arrangements are found to provide significant benefits to both employees and employers. Workers who have more access to flexible work arrangements report significantly better mental health than other employees, and are more likely to be committed to their employers and to plan to stay at their current company.

Read more.

Families and Work Institute is a non-profit center for research that provides data to inform decision-making on the changing workforce and workplace, changing family and changing community. For more information, see www.familiesandwork.org.

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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