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The Spencer’s Consumer-Driven Health Report is a summary of the week's news items posted in the WHAT'S NEW pages of Spencer’s Consumer-Driven Health Report Online. For questions regarding this email service, contact Customer Service at (800)449-9525.
Questions Answered Here--As a paid subscriber to Spencer’s Consumer-Driven Health Report, you have access to the expertise of Spencer editors, who will try to answer any questions regarding material we have published in the Report. To Ask A Benefits Question, visit our web site.

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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OFFICE OF CHIEF COUNSEL
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224...
Two recent Internal Revenue Service information letters clarify that amounts paid directly to employees in lieu of health care coverage are wages for employment tax (Federal Insurance Contributions Act (FICA)) purposes (see Text: IRS Information Letters 2008-1, 2008-6, Non-Plan Payments For Health Care)...
Following are several recent questions that were submitted by subscribers and the answers from Spencer editors...
Although lower premiums in high-deductible health plans (HDHPs) might increase the ability of the uninsured to buy some coverage, high out-of-pocket liability might leave families exposed to costs that they cannot meet, according to a recent Kaiser Family Foundation study published in an April online edition of Health Affairs...
The majority of American physicians now support national health insurance, according to a survey recently conducted by the Indiana University School of Medicine’s Center for Health Policy and Professionalism Research (CHPPR). The results of the nationwide survey of 2,200 physicians were published in the April 1 issue of the Annals of Internal Medicine. The 2007 survey found that 59% of physicians support national health insurance and 32% oppose it, compared with 49% and 40%, respectively, in 2002. Physicians in nearly every medical specialty, except for radiologists, anesthesiologists, and surgical subspecialties, showed increased support for national health insurance. Most likely to support national health insurance were psychiatrists (83%), followed by emergency medicine physicians (69%), pediatricians (65%), internists (64%), family physicians (60%), and general surgeons (55%)...
For the upcoming presidential election, 21% of registered voters ranked health care as the most important issue in deciding their vote, according to a recent Kaiser Public Opinion Spotlight. The study found that overall, health care ranked third behind the economy (43%) and Iraq (29%) as a voting issue...
When it comes to health care, “We do not get very good value for our money,” said Joseph P. Newhouse, a health economist and John D. MacArthur professor of health policy and management at Harvard University’s John F. Kennedy School of Government. “We do not do cost containment very well,” he said, and expressed concern that cost-containment tools could give up more benefits than any costs that they might save. He also noted the huge variation in Medicare spending depending on the geographic region (for example, Miami spends much more than does Minneapolis). However, quality does not follow the level of spending, he added; states that spend more on health care tend to do worse on “process” quality measures. A recent Harvard study revealed that medical treatment incurs a 3% to 4% chance of medical error and a 1% chance of a “negligent” error, Mr. Newhouse said. Furthermore, an Institute of Medicine study reported that anywhere from 44,000 to 98,000 people die annually because of medical errors...
In news release IR-2008-62, the Department of the Treasury and the Internal Revenue Service solicit public comments on recommendations for items that should be included on the agencies’ 2008-09 Guidance Priority List. The Treasury Department’s Office of Tax Policy and the IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. The Guidance Priority List focuses resources on guidance items that are most important to taxpayers and tax administration...
As wellness programs grow in popularity, employees overwhelmingly see value in these healthy activities, but do not stay committed to them. Nearly half of employees who have joined wellness programs in the past three years admit that their participation trailed off after just a few years, according to a survey recently released by the Guardian Life Insurance Company of America...
ERISA did not preempt an insurance company’s state law claims against a health care plan seeking reimbursement for claims that the insurer had prepaid on behalf of the plan. This was the ruling of the Fourth Circuit U.S. Court of Appeals in Great-West Life & Annuity Insurance Company v. Information Systems & Networks Corporation (No. 07-1502)...
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