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CCH Spencer's Benefits Reports NetNews™

August 18 - August 22, 2008
 

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The Spencer’s Benefits Reports is a summary of the week's news items posted in the WHAT'S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525.

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FEATURE PRODUCTNew

U.S. Master Pension Guide, 2008 Edition

The U.S. Master Pension Guide reflects the latest regulations, rulings and cases for qualified retirement plans, surveying the different type of plans from which an employer may choose, and describing the procedures for obtaining plan qualification.

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Featured This Week

New Reports


News

August 22

CMS Provides Guidance On Mandatory Reporting Requirements For Group Health Plans On Medicare Secondary Payer

The Centers for Medicare and Medicaid Services (CMS) has published guidance for group health plans to comply with Medicare secondary payer (MSP) mandatory reporting requirements. The new guidance, along with preliminary instructions and the required information that must be submitted, is available at http://www.cms.hhs.gov/MandatoryInsRep/

GAO Finds Lack Of Oversight Of PBGC’s Investment Policy

In a recent report to Congress, the Government Accountability Office (GAO) concluded that the Pension Benefit Guaranty Corporation’s investment policies may carry more risk than acknowledged by the PBGC…

Ninth Circuit Joins Other Courts In Ruling That Cash Balance Plans Are Not Age-Discriminatory

Joining four other circuit courts, the Ninth Circuit U.S. Court of Appeals has ruled that cash balance plans are not inherently age-discriminatory in violation of ERISA. The case is Hurlic, et al. v. Southern California Gas Company, et al. (No. 06-55599)…

August 21

Text: IRS Rev. Proc. 2008-48, Dependents Of Divorced Parents

 

IRS Provides Limited Exception To Dependent Claims

In Rev. Proc. 2008-48, the Internal Revenue Service describes the circumstances under which a child of parents who are divorced, separated, or living apart is treated as the dependent of both parents when the custodial parent has not released the claim to the exemption for the child under IRC Sec. 152(e)(2). The guidance affects health and accident plans under IRC Secs. 105(b) and 106(a), fringe benefits under Sec. 132(h)(2)(B), medical care under Sec. 213(d)(5), Archer medical savings accounts under IRC Sec. 220(d)(2), and health savings accounts under IRC Sec. 223(d)(2)…

CMS Issues Updated Factors For Medicare Inpatient Payment Rates For Fiscal Year 2009

In the August 19 Federal Register, the Centers for Medicare and Medicaid Services (CMS issued final regulations that detail annual changes to the Medicare fiscal year 2009 hospital inpatient prospective payment system (PPS) rates and updates to the long term care prospective payment system. The CMS describes the changes to the amounts and factors used to determine the rates for Medicare hospital inpatient services for operating costs and capital-related costs. These changes generally are applicable to discharges occurring on or after Oct. 1, 2008…

Commissions “Paid” Instead Of “Earned” Determined Amount Of Beneficiary’s LTD Benefits

An insurance company did not abuse its discretion when it excluded certain commissions in calculating the amount of a beneficiary’s long term disability benefits. This was the decision of the Fifth Circuit U.S. Court of Appeals in Dunn v. GE Group Life Assurance Company, et al. (No. 07-10739)…

August 20

New Benefits Questions And Answers, Week Of August 18

Following are several recent questions that were submitted by subscribers and the answers from Spencer editors…

Aging U.S. Population Dramatically Reflected In Hospital Statistics

A “dramatic” redistribution of patients by age since 1970 is illustrated in the 2006 National Hospital Discharge Survey, published in July by the National Center for Health Statistics (NCHS) of the Centers for Disease Control and Prevention…

ERISA Preempted Texas’ “Any Willing Provider” Law; Payment Out Of Network Not Required

Ruling in two consolidated cases, the Fifth Circuit U.S. Court of Appeals has found that ERISA preempted Texas’ “any willing provider” (AWP) law and that, as a result, health care plans were not required to reimburse an out-of-network drug therapy firm for services provided to plan participants. The cases are Quality Infusion Care, Inc. v. Humana Health Plan of Texas, Inc. (No. 07-20703) and Quality Infusion Care, Inc. v. Humana HMO Insurance (No. 07-20887)…

August 19

PBGC Issues September 2008 Interest Rates For Valuing Terminating Pension Plans

For single-employer pension plans terminating in September 2008, and for multiemployer plans involved in a mass withdrawal, the interest rate established by the Pension Benefit Guaranty Corporation for calculating immediate annuities is 6.24%, up from the 6.05% rate that applied in August…

Majority Want Overhaul Of Health Care System To Improve Quality, Access, And Cost

Most adults in the U.S. agree that the U.S. health care system needs either “fundamental change or complete rebuilding,” according to a recent report from the Commonwealth Fund’s Commission on a High Performance Health System. The study report, Public Views on U.S. Health System Organization: A Call for New Directions, presents results of a Harris Interactive survey of 1,004 adults…

Railroad Retirement Board Issues Final Regs On Partition Of Benefits Upon Divorce Under The PPA

The Railroad Retirement Board has issued final regulations that amend the agency’s existing rules concerning partition of annuities pursuant to a court decree or court-approved property settlement. The final rules, which appeared in the August 13 Federal Register, were issued in order to incorporate provisions of the Pension Protection Act of 2006 (PPA)…

Medicare Physician Pay-For-Performance Demonstration Improves Quality Of Care For Chronic Illnesses

The Medicare physician group practice (PGP) demonstration improved the quality of care delivered by all participating physician groups to patients with congestive heart failure, coronary artery disease, and diabetes mellitus during the demonstration’s second performance year, the Centers for Medicare and Medicaid Services (CMS) reported on August 14. The improved performance earned the ten participating groups $16.7 million in incentive payments for the period from April 1, 2006, through March 31, 2007. The PGP demonstration rewards health care providers for coordinating the overall health care needs of Medicare patients assigned to the groups and for improving health outcomes…

August 18

IRS Updates Its Employee Plans Compliance Resolution System

In Rev. Proc. 2008-50, the Internal Revenue Service updates its Employee Plans Compliance Resolution System (EPCRS), which is the agency’s comprehensive system of voluntary correction programs for sponsors of qualified retirement plans. The revenue procedure supersedes Rev. Proc. 2006-27, C.B. 2006-1, 945…

ISI Predicts Increases In HSAs

In its fourth annual analysis and forecast of health savings accounts (HSAs), Information Strategies, Inc. (ISI), predicts that the number of HSA-covered lives and accounts will double from January 2008 to January 2009…

Post-Hospital Emergency Room Visits Suggest Poor Inpatient Care

Emergency department visits following a recent hospitalization might indicate poor inpatient care or poor follow-up planning, according to a report from the National Center for Health Statistics (NCHS) of the Centers for Disease Control and Prevention…


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