March 2010

From the editors of CCH's BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product.

If you have any comments/suggestions concerning the information provided or the format used, we'd like to hear from you. Please contact me at tulay.turan@wolterskluwer.com.

Hot Topics in Employee Benefits Management:

Economic storm of past decade strikes benefits industry, holistic approach emerges, Employee Benefits Management Directions newsletter, Issue No. 461, February 9, 2010 – Market crashes. Investment scandals. Recession. Our nation has endured endemic economic volatility during the past decade. The ensuing effects have permeated our lives and livelihoods. These effects have altered many industries, including employee benefits. To examine how the benefits industry has changed over the last ten years, CCH, a Wolters Kluwer business, spoke to Stewart D. Lawrence, SVP and National Retirement Practice Leader for The Segal Company and Sibson Consulting, and Edward A. Kaplan, SVP and National Health Practice Leader for The Segal Company.

Mental health parity rules provide guidance on financial requirements, treatment limitations, Employee Benefits Management Directions newsletter, Issue No. 462, February 23, 2010 – Detailed guidance for determining parity between mental health benefits and health care benefits, in particular for financial requirements and treatment limitations, is included in interim final rules that implement the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008.

EBSA issues model CHIP notice, Employee Benefits Management Directions newsletter, Issue No. 462, February 23, 2010 – The Employee Benefits Security Administration (EBSA) has announced the availability of a template for employers to use for purposes of notifying their employees of the potential availability in their state of residence for premium assistance under Medicaid and the Children’s Health Insurance Program (CHIP).

Welfare plan is not entitled to lien on participant’s future Social Security benefits, Employee Benefits Management Directions newsletter, Issue No. 462, February 23, 2010 – A welfare benefits plan could not obtain a lien on a participant’s future Social Security benefits for reimbursement of disability benefit overpayments, the Sixth Circuit Court of Appeals (CA-6) has held.

What's New in Employee Benefits Management:

Information return survey – The chart showing the IRS’s information return requirements for 2010 has been updated at ¶2060.

Disability benefit overpayments – The Sixth Circuit’s decision in Hall v. Liberty Life Assurance Company of Boston (see story above) is discussed at ¶30,070.

CHIP model notice – The new model notice for premium assistance under Medicaid and the Children’s Health Insurance Program (CHIP) can be found at ¶226,110.

Mental health parity regulations – The regulations implementing the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008 are at ¶700,075.

2010 premium payment rates – The PBGC premium payment rates for 2010 have been updated at ¶82,030.

What's New in Benefits Answers Now (BAN):

Agencies issue rules requiring parity in treatment of mental, substance use disorders. The U.S. Departments of Labor, Health and Human Services (HHS), and the Treasury have jointly issued new rules providing parity for consumers enrolled in group health plans who need treatment for mental health or substance use disorders. The new rules prohibit group health insurance plans --typically offered by employers --from restricting access to care by limiting benefits and requiring higher patient costs than those that apply to general medical or surgical benefits. To find out more about these rules, see ¶21,820.

DOL issues new model COBRA notices. The Department of Labor (DOL) has issued new model COBRA notices as required by the American Recovery and Reinvestment Act of 2009 (ARRA) and as amended by the Department of Defense Appropriations Act, 2010 (DDAA), which President Obama signed on December 19, 2009. The DDAA extends the COBRA premium reduction eligibility period until February 28, 2010, and increases the maximum period for receiving the subsidy from nine to 15 months. See the discussion at ¶22,515 and ¶22,517 for more information about the COBRA subsidy and the required notices.

EBSA announces that EFAST2 online filing system can now receive Form 5500s. The Employee Benefits Security Administration (EBSA) has announced that the all-electronic EFAST-2 system is now operational for the receipt and processing of Form 5500 filings. EFAST2 allows the public to submit Form 5500 and Form 5500-SF and access filings at www.efast.dol.gov. More information about filing online can be found at ¶51,030 and ¶51,040.

Participants using 401(k) help offered through their employer have higher returns. 401(k) plan participants using professional investment help provided by their employer --such as target date funds, managed accounts and online advice --experience better returns on their retirement investments than those who do not, according to a joint study from Hewitt Associates and Financial Engines titled Help in Defined Contribution Plans: Is it Working and for Whom? The study also found that a participant's age is the key predictor of the type of help used, with younger, less-tenured participants more likely to use target date funds and older, more-tenured participants more likely to use managed accounts. Find out more about 401(k) investment advice at ¶10,025.

Study finds most employers spend nearly 2% of health care claims budget on wellness programs. Most mid- to large-size companies in the United States are strongly committed to continuing to invest in health improvement programs for their employees in 2010, according to a recent employer survey conducted by Fidelity Investments in conjunction with the National Business Group on Health (NBGH). Survey results showed that employers overwhelmingly (91%) agree that their willingness to invest in these programs will remain regardless of any health care reform changes in Washington. To learn more about wellness programs, see the discussion at ¶81,600.