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

Legislators in Most States Have Cleared the Way for Health Savings Accounts
EXCERPT: "Insurance commissioners in Rhode Island, Pennsylvania and Florida tell ICDC that lawmakers in their states recently removed legal roadblocks that would have made it impossible, or at least difficult, to pair a health savings account (HSA) with a high-deductible health plan (HDHP). But the clock is ticking for legislators in several states that still have laws on the books that could prevent or impede the adoption of HSA-based health plans on Jan. 1, 2006, when a two-year "transition period" granted by the Treasury Dept. comes to a close."  Full Article
August 19, 2005—America's Health Insurance Plans


Steadily, Plans Increase Coverage of Unorthodox Medical Therapies
EXCERPT: "Today, virtually all health plans cover chiropractic services and most health plans are willing to reimburse their members for at least some other forms of complementary and alternative medical care [CAM]. And studies show that CAM saves overall health care costs, including drug costs. The best example is back pain, which is treated noninvasively, successfully, and often without pain pills by chiropractors."
Editor's Note: This article includes a table listing various types and levels of CAM coverage offered in the U.S. The information comes from a 2005 study by the Institute of Medicine.  Full Article
August 2005—Managed Care Magazine


Cafeteria Plan Clarification by IRS
The IRS issued Notice 2005-61 to clarify the Form W-2 reporting requirements when an employer has amended a cafeteria plan document to provide a grace period for qualified dependent care assistance immediately following the end of a cafeteria plan year. In a nutshell, employers who adopt a grace period for their dependent care assistance program (DCAP) can continue to rely on Notice 89-111 by reporting in Box 10 of Form W-2 the salary reduction amount elected by the employee for the year for DCAP benefits. The full text of the notice can be found here: http://www.irs.gov/pub/irs-drop/n-05-61.pdf
September 2005—Internal Revenue Service


"Lost Labor Time" Costs U.S. $260 Billion Each Year
EXCERPT: "The authors note several strategies that policymakers and business leaders could adopt to help stem economic losses due to illness:

• Research has shown that well-run corporate disease management and health promotion programs can improve workers' health and productivity.
• Providing health insurance coverage for all workers would increase the use of preventive care and help ensure early treatment of acute illnesses and ongoing management of chronic conditions.
• Sick leave and paid time off to see a physician are important benefits to ensure that workers have time to get needed care, recover, or tend to sick family members."

Full Article   August 31, 2005—The Commonwealth Fund
 

Medicare Part D
References

Bookmark the following websites for information about everyone's favorite hot topic: Medicare Part D.

Remember, under Medicare Part D most employers who sponsor health plans must provide notices of either creditable or non-creditable prescription drug coverage to Medicare eligible employees and dependents. These notices must be provided regardless of whether they offer coverage to retirees or not.

E-mail Employer Questions about Medicare
Part D: epog@cms.hhs.gov

Part D creditable coverage guidance:
http://www.cms.hhs.gov/medicarereform/
credcovrg.asp

Part D coordination of benefits guidance:
http://www.cms.hhs.gov/pdps/
cobguidancefinal.pdf

Employer information:
http://www.cms.hhs.gov/medicarereform/
pdbma/employer.asp

“Explaining Medicare Prescription Drug Coverage to People With Coverage
Through an Employer or Union”:
http://www.cms.hhs.gov/medicarereform
/PARTNER_TIP_SHEET_EU_Coverage
_FINAL_8-02-05.pdf

“Quick Facts about Medicare’s New Coverage for Prescription Drugs for People who have Prescription Coverage from an Employer or Union”:
http://www.medicare.gov/Publications
/Pubs/pdf/11107.pdf

Medicare Part D - Learn About Medicare's New Benefit. Receive a Free,
Personalized Guide. www.PartDonline.com

Part D News for Pharma - Free weekly news about Medicare Part D.
www.medicareforpharma.com

Medicare Part D - RX - Prescription Drug Benefit Program Open Enrollment Information www.Medicare-PartD.com

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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