|
| February 2002 Volume I, Issue 2 |
NUTS AND BOLTSDataPath Sponsored Events DataPath Sponsored EventsApril 30, 2002 September 24-26, 2002 Other EventsMarch 21-22, 2002 April 28-May 1, 2002 April 29, 2002 New DOL Toll-Free NumberThe DOL has established a toll-free number, 1-866-275-7922, to answer the questions of employees and employers regarding their retirement and health benefits. For a copy of the DOL News Release (Feb. 11, 2002) announcing this, go to http://www.dol.gov/opa/media/press/opa/O Technical Support TipIf you don't know what to do in a particular field or screen, just press F1 and a help screen will pop up. It will tell you what that screen is for, and how to fill out the various fields. This will save you considerable time and phone calls. Just remember, F1 is the magic key! Rules and Regs Support TipsFirst of all, if you will email your rules and regs questions, you will usually get a much faster reply. I can read it, put in my comments, and fire it right back. We also urge all our 125 users to subscribe to the EBIA Cafeteria Plans manual. (This is what DataPath used to put out under the name of Legal Guide.) We consider this the best 125 reference book around. They have added a new Chapter One, Cafeteria Plans: The Short Course which is excellent for anyone new to cafeteria plans. If you have this manual, I can give you a general answer and direct you to the pages where you can get all the details. However, I want to remind you again that I am not a lawyer or an accountant; I can just point you to the rules and regulations. You can order the manual either in printed form or as an ebook, and it is updated quarterly. To order it, go to http://www.ebia.com. They also have publications on 401(k) Plans, COBRA: The Developing Law, and ERISA Compliance for Health and Welfare Plans. 2002 DataPath Advanced SeminarDid you notice the announcement for our annual DataPath Advanced Seminar above? After the last seminar, you had three key requests: (1) November was too late—it interfered with your renewals, (2) you did not want John Hickman to speak on the last day, and (3) you would like to go somewhere other than Little Rock. We listened to all three!
If you like the blues, our hotel is just a few blocks from Beale Street. Or, if you like to gamble, it is not far to the Casinos. Maybe there will be something special in the Pyramid, or maybe you want to see Graceland Mansion, home of Elvis. Here are a couple of web sites telling about Memphis: http://www.memphis.com/; http://www.memphis.worldweb.com/Memphis/. This time I'm telling about the fun, but in the next issue, you will hear about the seminar, its contents and its speakers. Of course, one of the best things is to be able to talk to people from all over the country and find out what they are doing. Sales and Support
|
ARTICLESDatapath's Solutions to the Defined Contribution Approach
Electronic Funds Transfer: New Service for our Users Datapath's Solutions to the Defined Contribution ApproachAs we told you in the last newsletter, the expenses for employee healthcare are spiraling out of control. The Defined Contribution approach to group employee health benefits has emerged as a leading method to deal with the employer's need for a cost effective solution to this problem. Defined Contribution gives employers a tool to handle exploding healthcare costs through budget controls and, at the same time, give the employees more control of coverage through choices. Although the Defined Contribution approach is just gaining mainstream momentum in the market place, the DataPath Defined Contribution programs have been utilized by Benefit Consultants serving employers of all sizes throughout the country since 1995. DataPath has developed DataPath 105 to help the cost conscious employer solve the benefit puzzle without alienating their employees. DataPath 105 has three separate modules to address your needs: MERP 105, MAX 105, and FLEX 105. Each module targets a separate market depending on your position in the market. From the smallest TPA to the largest employer, DataPath has a Solution for you. MERP 105: For PSPs Administering Cafeteria PlansThis business model is for the PSP whose primary revenue source comes from administrative services and their primary client source comes from insurance brokers' referrals. These PSPs do not place the health insurance for the employer, but works with the employer's current plan structure. MERP 105 offers an employer-funded Medical Expense Reimbursement Plan (MERP) designed to cover certain medical expenses incurred by the employee. It is a straightforward plan, easy to implement and easy to administer. Using the MERP 105 approach, the PSP can design a single 105 Plan with multiple Benefit Options. Each Benefit Option contains multiple Benefit Design Modules (such as Medical, Dental, or Vision) with different deductibles, co-insurances, and co-pays for each module. The MERP provides the employer with unlimited flexibility which creates more cost-savings opportunities for the employer, while giving employees more choices and more control. All Benefit Options are coordinated within the employer's single 105 Plan to ensure the Employer's Defined Contribution budget limit is maintained. The MERP 105 Model, simple in concept and application, is appropriate for employers of any size. It allows for simple or sophisticated plan designs and efficient administrative performance independent of the employer's health insurance. The MERP 105 system can be used as a stand-alone administration system or as a part of the DataPath Software Suite. It offers seamless Database Level Integration with DPI-125 (Section 125 Cafeteria Plans), DPI-132 (Section 132(f) Tax-Free Transportation Plan), and DPI-COBRA. MAX 105: For Personally Producing General Agents (PPGAs)MAX 105, released in 1995, is a system designed for use by Personally Producing General Agents (PPGAs). This system focuses on the premium savings of the underlying insurance policy being placed with the employer. The marketing approach, proposal techniques, and defined contribution administration model are quite different from that available to non-PPGAs. While this model also uses the MERP sanctioned by IRC Section 105, it is tightly coupled under the "over-head" insurance coverage, and is presented as a combined plan of coverage. MAX 105's integration with the "over-head" coverage makes the plan design significantly more involved than the MERP 105 system. The MAX 105 solution contains:
One of the best ways to characterize the MAX 105 Model is to say it operates as a MSA for the Employer. The Max 105 model is designed to work for smaller employer groups with employee numbers ranging from under ten to a few hundred. FLEX 105: For Benefit Consultants using Partially or Fully Self-Insured Arrangements.Flexibility coupled to the employer's self-funded coverage is the key ingredient to this level of the 105 solution. It focuses on the large employer market maintaining a Partially or Fully Self-Funded healthcare arrangement. (Self-funding is a structured plan by which an employer assumes all or part of the risk for its employee healthcare.) For this plan design, the employer typically has more than 200 employees, and needs a healthcare solution incorporating the Defined Contribution approach. The employer's flexible plan designs empower their employees. By giving the employees more choices and incentives., they are motivated to make conscientious and cost effective decisions consistent with quality care and sound healthcare practices. For more information on these products, email sales@dpath.com or call them at 1-800-633-3841. Electronic Funds Transfer: New Service for our UsersSo many of our users wanted Electronic Funds Transfer (EFT) to be able to deposit claim reimbursements directly into the employees' bank accounts, but they were reluctant. Some of the reasons we heard for not doing it were:
When DataPath becomes aware of a need for our users, we try to meet that need. DataPath has designed a service, and DataPath Administrative Services (DPAS) is administering it. Our Electronic Funds Transfer Services offer you straight forward, single-click connectivity to EFT Services with:
With our EFT Services, DPAS can enable you to offer "Next Day" payments. For more information, email sales@dpath.com or call them at 1-800-633-3841. DataPath COBRA Administration SystemDid you know that the IRS estimates that 90% of all COBRA employers are not in compliance? Scary, isn't it? However, DataPath has converted this situation into an opportunity for you! With our new product, the DataPath COBRA Administration System, you can open up another opportunity to offer COBRA administration services to your clients. Providing COBRA Administration with DataPath COBRA is as easy as 1-2-3!
This article is just the tip of the iceberg regarding the many features of DataPath COBRA. Email sales@dpath.com or call them today at 1-800-633-3841 to get full details. IRS has reorganized its Web Sites!!The IRS has reorganized its web sites, but here is a list of some of the new web sites you may find useful. Gateway to many useful sites:http://www.irs.ustreas.gov and http://ftp.fedworld.gov/pub/. Internal Revenue Bulletins: http://www.irs.ustreas.gov/bus_info/bullet.html IRS News Releases and Fact: http://www.irs.ustreas.gov/news/nandf.html Coordinated Issue Papers: href=http://www.irs.ustreas.gov/businesses/display/0,,i1%3D2%26genericId%3D7138,00.html. IRS Written Determinations including PLRs: http://apps.irs.gov/news/efoia/determine.html IRS Information Letters: http://www.irs.ustreas.gov/news/efoia/info-ltrs.html IRS Drop Library. (where the IRS publishes advance copies of Notices, Announcements, Revenue Rulings and Revenue Procedures): http://ftp.fedworld.gov/pub/irs-drop/ Fedworld site for Retrieve Forms and Publications: ftp://ftp.fedworld.gov/pub/irs-pdf/irs-pdf.htm. IRS Regulations: http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1. Frequently Asked Tax Questions And Answers: http://www.irs.ustreas.gov/faqs/display/0,,i1%3D54%26genericId%3D16004,00.html#Cat12. Tax Law Issues, Nibbles & Bytes for Tax Professionals: http://www.irs.ustreas.gov/taxpros/display/0,,i1%3D5%26genericId%3D7173,00.html. Freedom of Information Act (FOIA):. http://www.irs.ustreas.gov/foia/display/0,,i1%3D49%26genericId%3D16992,00.html Employee Retirement Plan Information: http://www.irs.ustreas.gov/businesses/display/0,,i1%3D2%26genericId%3D6934,00.html. .Market Segment Specialization Program: http://www.irs.ustreas.gov/businesses/display/0,,i1%3D2%26genericId%3D7045,00.html |
If you know someone who would like to receive our newsletter, email subscribe-path@dpath.com. with their name, company name, telephone number, and email address and they will be added to the mailing list.
If you want to unsubscribe, send a blank email to unsubscribe-path@dpath.com.
© DataPath, Inc.