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

Employer Interest in Consumer-Directed Health Plans Growing
EXCERPT: "The survey of 585 mid-sized and large companies found that the number of employers offering a high-deductible health plan (HDHP) with a health savings account (HSA) or health reimbursement [arrangement] (HRA) is increasing. Twenty-nine percent of employers now offer such plans, and another 33 percent plan to do so in 2007.

Best-performing companies—those keeping cost increases to just 3 percent over a two-year period—are more likely to incorporate the following four factors into their health care programs: quality, health improvement and productivity, data/evidence and appropriate use of health care services."   Full Article
March 16, 2006—Watson Wyatt Worldwide
 

Health Plans: Spring Deadlines
EXCERPT: "Employers who offer prescription drug coverage must inform the Centers for Medicare and Medicaid Services (CMS) by March 31, 2006 as to whether their drug coverage is creditable or noncreditable under Medicare.

Employers with large group health plans must send to participants a notice of availability of the plan’s HIPAA Privacy Notice by April 14, 2006.

Small group health plans must comply with the HIPAA security rules by April 20, 2006. A “small” group health plan is a health plan that has annual receipts of $5 million or less."   Full Article
March 13, 2006—Seyfarth Shaw LLP
 

The MetLife Study of Employee Benefits Trends
EXCERPT: "Going forward, employers will need to offer more customized benefits communications. They will also need to address their employees’ desire for retirement planning advice and access to products that focus on income protection and generation. Overall, nearly half (43%) of the employees surveyed want access to financial planners to help with 401(k) decisions, and 56% cite “outliving their retirement assets” as their number one retirement-related concern, up from 49% in 2004.
Employers who tailor their benefits packages to meet their workers’ life-stage and retirement needs are likely to reap significant advantages. Nearly one-third (31%) of today’s employees say benefits are an important reason why they came to work for their employer [and] nearly four in ten (38%) full-time employees say the benefits offered to them are an important reason why they remain."   Full Article
2006—MetLife
 

Do the Math

$250,000

The total savings at age 70 of a 40-year-old pack-a-day smoker who quits and puts the savings into a 401(k) earning 9% a year.

MSN Money

$200,000

Savings needed by retiring 65-year-old couples for out-of-pocket expenses on basic medical coverage during their golden years.

Boston Herald

$25 – $30 billion

Total U.S. sales for certain brand-name drugs that may lose patent protection over the next 3 years.

Medco 2005 Drug Trend Report

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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