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

Communication Vital to Success of New Benefit Plan Designs 
EXCERPT: "Because the long-range goal of benefits communication is, more often than not, to motivate employees to take some kind of action or to modify their behavior, an effective communications program is continuous. It cannot be a one-time event or left up to the orientation program. Benefits communication often involves an entire campaign, conducted over an extended period of time, with targeted messages for specific groups, using a variety of tools and monitored continuously for results."
Full Article
May 2005—BenefitNews.com 

Survey: U.S. Employers Turning to Wellness Programs to Manage Health Care Costs
EXCERPT: "Businesses are increasingly turning to wellness programs to get a handle on rising health care costs, and most believe these programs will have a long-term impact but few short-term benefits, according to a survey released today by the Deloitte Center for Health Solutions and the ERISA Industry Committee (ERIC). The survey also found that 83 percent of employers surveyed increased the amount of money employees contribute to their own health care coverage in the last year."
Full Article
June 23, 2005—WorldatWork

Medicare Part D Prescription Drug Benefits and Employer-Sponsored Health Plans
September 30, 2005 - Employers must submit applications for subsidy. November 15, 2005 - All health plans sponsors must notify active and retired employees and their spouses and dependents who are entitled to Medicare Part A and enrolled in Part B as to whether or not the plans provide "creditable coverage." Other areas covered: MMA Overview; Standard Benefit Under Part D; Plan Sponsor's Options; Rules for 28% Subsidy; Creditable Coverage Notices; Accounting Issues; HSAs, FSAs, HRAs, and MSAs. For details see Milliman's July Benefits Perspectives Update.
July, 2005—Milliman

More Companies Froze, Terminated Pension Plans in 2004, Watson Wyatt Analysis Finds 
EXCERPT: "In its analysis, Watson Wyatt found that 11 percent of companies in the Fortune 1000 that sponsor defined benefit plans had a frozen or terminated plan in 2004. The 11 percent represents 71 companies and is an increase from 7 percent (45 companies) in 2003 and 6 percent (39 companies) in 2002. Additionally, 4 percent of employers (25 companies) had pension plans that were closed to new hires in 2004. Nearly two-thirds of the Fortune 1000 companies (63 percent) currently sponsor a defined benefit plan. Improved returns in equity markets and sizable cash contributions by employers helped boost the average pension plan funding ratio to 83 percent in 2004. The average funding ratio was 81 percent in 2003 and 76 percent in 2002, the analysis found."
Full Article
June 22, 2005—Watson Wyatt Worldwide 

Retiree Drug Subsidy National Conference

By BSG ® Contracts and Compliance and Research Department

Is your group health plan getting ready to apply for the retiree prescription drug subsidy or do you want to learn more about it? If yes, this article is for you.

The Retiree Drug Subsidy (RDS) National Conference was held July 12 and 13, 2005. Hosted by enthusiastic directors from The Centers for Medicare & Medicaid Services (CMS), it drew attendance of approximately 800 people, including representatives from insurance companies such as Humana and Kaiser, as well as Pharmacy Benefit Managers (PBMs) and numerous plan sponsors.

Although no attendance list was provided, it was said some of the largest private plan sponsors were present (think General Motors). BSG® is pleased to have had a representative from our Contracts, Compliance & Research Department in attendance.

Background
The Medicare Modernization Act of 2003 (MMA) created Medicare Part D. Effective January 1, 2006, the Act will allow Medicare-eligible retirees to purchase prescription drug coverage. To encourage employers to maintain existing retiree prescription drug benefits, the retiree drug subsidy was created. It allows qualifying plan sponsors (group health plans) to apply to receive a tax-free 28% subsidy for qualifying drugs prescribed to qualifying retirees and their family members.

Continued in Full Article (PDF Format)

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

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