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

Survey Finds Businesses and Retirees Hit With Double-digit Increases in Retiree Health Costs
EXCERPT: "The survey found that firms providing retiree health benefits experienced cost increases averaging 12.7 percent in 2004, with employers and retirees sharing these cost increases at most firms. The survey also found that a typical worker under age 65 who retired in 2004 would pay $2,244 annually in premiums ($4,644 with spousal coverage) – 27 percent more than a similar worker who retired in 2003. A typical Medicare-eligible worker who retired in 2004 would pay $1,212 annually in premiums ($2,508 with spousal coverage) – 24 percent more than in 2003. [However] few employers say they will drop coverage in 2006 when the Medicare Drug Law is implemented."
Full Article
December 14, 2004—The Henry J. Kaiser Family Foundation 

A “Qualifying Child”
EXCERPT: "A 'qualifying child' may enable a taxpayer to claim several tax benefits, such as head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit and the earned income tax credit. Prior to 2005, each of these items defined a qualifying child differently, leaving many taxpayers confused.

The Working Families Tax Relief Act of 2004 set a uniform definition of a qualifying child, beginning for Tax Year 2005. This standard definition applies to all five of the tax benefits noted above, with each benefit having some additional rules."
Full Article 
January 2005—Internal Revenue Services 

Few Workers Familiar with Health Savings Accounts
EXCERPT: "Despite growing publicity, most U.S. workers have neither heard of health savings accounts (HSAs) nor understand how they work, according to a new survey by Watson Wyatt Worldwide. After receiving an explanation of HSAs, a majority of individuals like features such as control of funds and lower premiums, but dislike the risk of higher prescription drug payments and deductibles."
Full Article 
January 11, 2005—Watson Wyatt Worldwide 

Health Care Spending Growth Slowdown Stalls in First Half of 2004
EXCERPT: "Health care spending growth slowed in both 2002 and 2003—after peaking at 10 percent in 2001—but outpaced growth in the U.S. economy by a considerable margin. That trend continued in the first half of 2004 with health care costs still growing at a faster rate (7.5%) than the unusually high 5.9 percent increase in per capita gross domestic product (GDP) during the same period."
Full Article 
January 2, 2005—Center for Studying Health System Change 

Due to our rapid growth and the desire to better serve our clients, BSG® is expanding again, this time into a larger building at a new location, just north of I-94 at the corner of County F (formerly State Highway 164) and Paul Road. Our web site has updated maps and driving directions. 

Please make a note that we will be in the new building on Monday, 
March 7, and our address will be:

The Benefit Services Group, Inc. 
N25 W23050 Paul Rd
Pewaukee, WI 53072-4078

Our telephone and fax numbers remain the same: 262-521-5700 
(tel); 262-521-5710 (fax). 
However, our e-mail addresses will change to the format firstname.lastname@bsg.com. 

Our new location will have seven dedicated conference rooms, ranging in seating capacity from six to ninety-one. Our largest conference room will feature state-of-the-art audio/visual capabilities, audience laptop connections, and theater-style (tiered) seating. We anticipate hosting more educational and training seminars for clients in this facility.

We look forward to showing our new location to you and anticipate that it will help us serve you even better in the future.

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. 

To comment on newsletter content, write to tess.richardson@bsg.com. If you would like to change your subscription address, or request a plain text version, please e-mail your request to jetaun.sinclair@bsg.com.

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

W226 N887 Eastmound Dr., Suite F
Waukesha, WI 53186
tel 262-521-5700
fax 262-521-5710
www.bsg.com