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

Communication Plays Critical Role in Improving Retention Power of Health Benefits 
EXCERPT:  "How well a company communicates the value of its health benefits can do more to retain top-performing employees than the actual richness of the benefits themselves, according to a new analysis by Watson Wyatt, a leading human capital consulting firm. Additionally, companies that cannot hold their health care budgets down as a share of total compensation have higher turnover rates for top performers."
Full Article
February 23, 2005—Watson Wyatt Worldwide 


Firms Adding Incentives to Curb Smoking 
EXCERPT: "If you resolve to stop smoking in the new year, it might pay off. Companies, frustrated by rising health care costs, are becoming increasingly involved in employees' health. Some are using incentives like iPods or cash to get employees to quit smoking. Others are charging smokers more for health insurance or are refusing to hire them at all." 
Full Article 
January 4, 2005—Billings Gazette 


Benefit Plans Under More Government Scrutiny for Possible Compliance Defects
EXCERPT: "Employer-sponsored retirement plans, health and welfare plans, and executive compensation plans are under intensifying scrutiny as federal agencies step up their efforts to ensure compliance with relevant laws and regulations. For qualified retirement plans in particular, the government is essentially putting companies on notice that they should voluntarily correct any compliance defects with their plans or face potentially severe financial penalties if operational defects are discovered during formal audits."
Full Article 
February 2005—Towers Perrin 


Hewitt Study Shows Employers Seeking to Attack Root Causes of Health Care Cost Inflation
EXCERPT: "Hewitt’s survey of more than 500 major U.S. employers covering more than 6 million employees and family members finds that companies anticipate a cost increase of 12 percent for 2005, but can only afford a maximum 8 percent increase. Closing this gap continues to be a major issue for C-suite executives, and their concern is leading to significant changes in health care strategy. In fact, the survey shows some companies (7 percent) are shifting responsibility for health care strategy to finance and purchasing executives, a responsibility previously held by human resources."
Full Article 
January 10, 2005—Hewitt Associates 


HHS Issues Final Regulation on Access to Group Health Coverage
EXCERPT: "The final regulation, which becomes effective for plan years starting on or after July 1, 2005, does not significantly modify the framework of the 1997 interim final regulation. However, in response to comments received during the public comment period, the final regulation contains features that are intended to bolster HIPAA's consumer protections while minimizing the burdens imposed on group health plans and group health insurance issuers."
Full Article 
December 29, 2004—U.S. Dept. of Health & Human Services 

We've Moved!
When planning a visit to our office, please remember that we are now located at the corner of County F (formerly State Highway 164) and Paul Road, north of I-94. You'll find maps and driving directions at our web site. 

Our new address is:
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 have changed to the format firstname.lastname@bsg.com. 

We look forward to hosting you at our new location. Please watch future PlanAhead issues for information on BSG® seminars upcoming in 2005.

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 2005 The Benefit Services Group, Inc. BSG® is a registered trademark of The Benefit Services Group, Inc.

N25 W23050 Paul Rd.
Pewaukee, WI 53072-4078
tel 262-521-5700
fax 262-521-5710
www.bsg.com