If this HTML newsletter is not readable or the links do not work, please request the plain text version via e-mail to tess.richardson@bsg.com

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

Sick Over Health Care Costs, Companies Get Some Relief With On-Site Medical Centers
EXCERPT: "Among companies participating in this evolutionary trend are Sprint, Toyota, U.S. Steel and Goodyear Tire & Rubber Co. Some outfit and operate the clinics themselves. Others enlist vendors who hire the staff and run the clinics--and pay the malpractice insurance. In addition to the savings that companies realize, firms say the clinics promote recruitment, retention and improved health. And with the Health Insurance Portability and Accountability Act, they’ve found that employees raise few concerns about privacy."
Full Article
May 2005—Workforce Management (http://www.workforce.com/)

Benefit Costs Slow as Employers Shift Health Costs
EXCERPT: "The rise in employee benefit costs has eased somewhat to 1.1% in the first quarter ended March, according to the Labor Department's latest Employment Cost Index."
Full Article
May 3, 2005—BenefitNews.com (http://www.benefitnews.com/index.cfm)

Playing the Annual Part D Employer Game
EXCERPT: "Employers that plan to continue to provide prescription drug coverage to their Medicare eligible retirees need to begin preparing today for changes that will take place when Medicare Part D takes effect in 2006. Provided that they offer prescription drug benefits that are as good as, or better than, the standard Medicare Part D benefits, employers will be eligible to receive a federal subsidy of approximately 28% of the cost of providing prescription drug benefits."
Full Article
May 4, 2005—Chicago Consulting Actuaries (http://www.chicagoconsultingactuaries.com/home.cfm)

Consumer-Directed Care: HSA 'Landmines' Could Cause Problems for Insurers, Employers
EXCERPT: "It's been six months since the Treasury Dept. issued its last significant round of guidance on HSAs, but questions — and loose interpretations of the rules — continue to baffle insurers, employers and consumers. During a Jan. 27 audioconference sponsored by ICDC, two industry experts took on several common HSA "landmines" including prescription drug coverage, prohibited transactions and HSA contribution rules for employers.
Full Article
February 4, 2005—AISHealth.com (http://www.aishealth.com/)

HSA Frequently Asked Questions
The Treasury Department has reorganized and expanded the frequently asked questions that appear in the HSA section of its Web site. The number of questions has increased from 58 to 85, and they are now organized under eight topic headings, making it easier to locate information on a particular HSA issue.
Full Article
April 2005—U.S. Department of the Treasury (http://www.treas.gov/)

Health Insurance Mandates in the States
Mandates typically boost the cost of health coverage between 20% to 50%, finds a report from the Council for Affordable Health Insurance that lists each state's mandates and associated costs. Breast reconstruction, coverage required by 48 states, adds less than 1% to premiums, while mental health parity - mandated in 42 states - adds between 5% and 10%.
Full Article (in PDF)
January 2005—Council for Affordable Health Insurance (http://www.cahi.org/index.asp)

Contract Insights: Changing Carriers with an Insured Plan

By Sue Thomas, RHU, GBA, 
BSG® Director, Contracts and Compliance

In March of this year, BSG® sent a representative to the annual meeting of the Society of Group Contract Analysts. This is a professional association whose membership, for the most part, is involved in the writing and state filing of insured group contracts, many for large carriers (Aetna, MetLife, Delta and AIG, for example were in attendance). It was very interesting to hear their perspective on a number of matters. From a plan sponsor perspective, here are the important take-aways from this meeting:

• All attendees agreed that state insurance departments across the country are under-staffed, over-worked, and short on funding.

• Filing contracts and contract updates has become increasingly difficult and time-consuming. This happens in large part due to low motivation at the state insurance departments and a constant increase in red tape. For example, if a contract filing is rejected for a minor error, it is returned to the insurer for re-drafting. Once re-drafted, the contract when submitted again to the state goes to the bottom of the “pile.” Sometimes, it gets assigned to a second reviewer rather than going back to the person who did the initial review. The second reviewer can find additional errors, so back it goes to the insurer again. Numerous participants cited this "vicious cycle" as a major impediment to filing.

• The NAIC (National Association of Insurance Commissioners) had a representative at the meeting. The NAIC has developed an internet-based contract filing program designed to help overcome filing hassles, but its use is not yet widespread.

• States are of course concerned with state law, and spend little, if no, time on federal requirements such as HIPAA and COBRA. 

Next Page...

PDF Version of Entire Article

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 tess.richardson@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