dataPATH FOR SUCCESS
Mar 2005   Volume IV, Issue 3 Editor: Melissa Vinson, CFCI
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Watch for Details of DataPath's 2005 Annual Conference

DataPath Events

DPI-125 Basic Software Training

DPI-125 Advanced / CMS Software Training

§ 125 Cafeteria Plans Continuing Education Seminar

HSAToday™ Training

mySourceCard / CMS Software Training

Global Claims Processing / CMS Software Training

DataPath 105-HRA / CDH Concept Seminar

DPI-105 HRA Software Training

DataPath-COBRA Education / Training Seminars

General Information about DataPath Seminars

Event Calendar

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Comments?
Suggestions?

If you have any comments on the articles in this newsletter or suggestions for future newsletters, please email mvinson@dpath.com. We welcome your input.

DataPath Employees Lobby Successfully for Increase in DCAP Contributions

While attending the Legislative Conference of the National Association of Professional Benefits Administrators in Washington DC, DataPath employees Jason Lee and David Wise made a side trip to Capitol Hill to meet with their Congressional representatives to discuss several issues of importance in our industry. Foremost of these was increasing the contribution level for Dependent Care Assistance Program (DCAP).

The current $5,000 DCAP limit has been in effect since 1989 despite a significant increase in dependent care costs since that time. While the 2001 tax bill increased the Dependent Care Tax Credit (DCTC) limit by $1,000 to $3,000 for one child and $6,000 for two, it did not raise the DCAP amount. (We know from our readers' comments that they are concerned that this disparity in contribution levels could cause employees to drop their DCAPs and turn to DCTCs.)

Lee and Wise met with Terra Sabag, Congressman Vic Snyder’s Legislative Assistant for Labor. Two weeks after their meeting, Snyder (D-AR) announced that he would co-sponsor HR 1275 (Working Parents Child Care Assistance Act) which will increase the DCAP contribution level to $6,000 from its current level of $5,000. This would bring the DCAP allowance in line with the amount that parents can claim through the Dependent Care Child Tax Credit.

 Click here to read entire article.

Wave of the Future:
Consumer Driven Health Care

Most experts are predicting that Consumer Driven Health Care (CDHC) is the wave of the future, and its momentum has grown with the addition of Health Savings Accounts (HSAs). In the face of this change, administrators need to reevaluate their services or get left behind in the market.

If you administer FSAs, HRAs, or HSAs or if you sell High Deductible Health Plans, you are well on your way to being a CDHC administrator. Now all you need to do is to enhance your services to meet the market's demand.

 Click here to read entire article.

Survey Shows Increasing Popularity of Consumer-Driven Health Plans

A recent survey developed by Aon Consulting and conducted by the International Society of Certified Employee Benefit Specialists (ISCEBS) focused on Consumer-Driven Health Plans CDHPs) and their growing popularity. Of the 800+ ISCEB members were interviewed, 22% of the respondents are currently offering a CDHP (with 74% only beginning in 2004 or 2005).

Of the current CDHPs, almost two-thirds were health reimbursement arrangements (HRAs) and only 15% provided health savings accounts (HSAs). However, 38% of the employers planning to offer a CDHP in the near future anticipate including HSAs as an option, and 11% of these plan to have the HSA as a total replacement for their existing health plans.

 Click here to read entire article.

Upcoming Seminars

Here are the seminars scheduled for April and May.

HSAtoday™ Training:  April 12; May 24
DPI COBRA Training:  April 4; May 16
HRA-105:  April 8; May 20
Global Claims Processing w/Card:  April 7; May 19
DPI 125 Training w/ Card:  April 5-6; May 17-18
DPI 125 Training w/o Card:  April 13-14; May 25-26

Click here for a registration form or click here for more information. You can also call 1-800-633-3841.

HSA Tip

When explaining how HSAs combined with a High Deductible Health Plan (HDHP) can save money for an employee, one element is often overlooked. That element is co-pays.

 Click here to read entire article.

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LEGAL DISCLAIMER: Material contained in this newsletter is not legal advice, and should not be construed as legal advice. If you need legal advice upon which you can rely, you must seek a legal opinion from your attorney.

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© DataPath, Inc. 2005