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

Towers Perrin Survey Finds Consumer-Driven Health Care Strategies Jeopardized by Employer and Employee Disconnects 
EXCERPT: "A widening gap between employer and employee views on health care threatens to undermine employer efforts to use consumer-driven health care strategies to slow the growth of health care costs, according to new survey results from Towers Perrin. The 2004 Towers Perrin Health Care Consumerism Survey: Aligning Employer and Employee Interests shows that most U.S. employers are moving forward with health care strategies that rely on employees to be better health care consumers. At the same time, however, recent employer efforts to control company health care costs have fueled growing employee resistance and have compromised the perceived value of health benefits in many organizations." Full Article
June 14, 2004—Towers Perrin HR Services 

Healthcare Continuation Coverage (COBRA) Notice Requirements
EXCERPT: "Group health plan sponsors must establish new procedures, update their healthcare continuation ('COBRA') notices, summary plan descriptions (SPDs), and other communications, and provide new notices in certain circumstances, under the Department of Labor’s (DOL) final rules for COBRA notices. The new rules only apply to notice obligations in plan years beginning on or after Nov. 26, 2004 (i.e., Jan. 1, 2005 for a calendar-year plan). Until then, use of the 2003 proposed or the new final model notices and election form constitutes 'good faith' compliance." Full Article
June 22, 2004—Milliman

What is the Controversy over Drug Importation?
EXCERPT: "Prescription drugs are among the most costly of health care expenditures for most Americans. Many Americans have to skip medications or don't get their prescriptions filled because they can't afford their medications. Because of high drug prices, some people are importing prescription drugs from other countries such as Canada or "re-importing" drugs that were made in the U.S. and shipped to other countries, where the drugs are often sold at a lower price." This article lists some of the issues being considered by policymakers in Washington, as well as some of the pros and cons of drug reimportation. Full Article
HealthCareCoach.com

Aetna HealthFund® First-Year Results Validate Positive Impact of Health Care Consumerism
EXCERPT: "Aetna announced the results of a research study of first-year members in its Aetna HealthFund Health Reimbursement Arrangement (HRA) plan. The study of 13,500 HealthFund members, analyzing claims and utilization data for the full 12 months of 2003, provides further validation that the consumer-directed plan encourages active engagement in health care decision-making. Among the key findings, employers offering these plans as an option experienced low medical cost increases of 3.7 percent, while a full replacement plan sponsor experienced a medical cost decrease of 11 percent." Full Article
June 22, 2004—Aetna, Inc.

Free Access to EBIA's Cafeteria/401(k) Plan Tax Savings Calculator

EXCERPT: "Do you have a cafeteria plan, a 401(k) plan or a pre-tax transit/parking plan? Why not provide your employees with an accurate and easy-to-use tool to estimate how much they can save in federal taxes by making pre-tax salary reductions or salary deferrals? When employees truly realize how much they can save, plan participation rates rise.

Anyone can now access EBIA's Cafeteria/401(k) Plan Tax Savings Calculator for free. Simply visit EBIA's website and click on the access link. With the 2005 open enrollment period fast approaching, now is the time to get ready to use EBIA's Cafeteria/401(k) Plan Tax Savings Calculator."

Employee Benefits Institute of America Inc. (EBIA) invites employers, service providers, and other organizations to place a link to their calculator on their websites.

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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