• Despite high health care costs, employers who offer health benefits for their workers remain committed to the current employer-based health insurance system according to a report by Commonwealth Fund. Employers also expect that increases in health benefit costs will start to slow down according to a Watson Wyatt National Business Group on Health Survey.



• The forerunners to Blue Cross were founded during the Great Depression. They were controlled by hospitals and were created to provide "first-dollar coverage for hospital expenses, but with a limited duration." By the late 1930s, physicians established their version of medical coverage, Blue Shield plans and through the 1940s, the so-called "Blues" dominated in medical expense coverage. ("Development of Medical Expense Coverage," employee-benefit.blogspot.com/2008/05)

On the Regulatory Front

• On December 20th, 2006, President George W. Bush signed into law the "Tax Relief and Health Care Act (H.R.6111) also called the "Health Opportunity Patient Empowerment Act of 2006". The law expands HSAs' annual limits and funding sources, and provided greater flexibility for employers electing to fund the accounts. Under the legislation, deposits up to the annual contribution limits, regardless of the qualified health plan deductible, were now permitted. Previously, contributions were limited to the health plan deductible if it was below the annual contribution limit. In 2007, the limits were set at $2,850 for individual coverage and $5,650 for family coverage. In 2008, the maximum HSA contribution increased to $2,900 for individuals and $5,800 for families, and in 2009 it will be $3,000 for individuals and $5950 for families.



• In January 2009 changes become effective for two long-time employment laws. Specifically, new regulations were issued on the Family and Medical Leave Act ("FMLA") and the Americans with Disabilities Act Amendments Act ("ADAAA") was passed which amends the Americans with Disabilities Act. The new FMLA regulations become effective on January 16, 2009, and, among other things, update the current FMLA regulations to implement new military family leave entitlements enacted under the National Defense Authorization Act for FY 2008, add certain notice obligations and form requirements and clarify certain provisions which were subject to different interpretation. The ADAAA becomes effective January 1, 2009 and redefines and broadens the definition of disabilities under the ADA.

What's New at Alcott?

Alcott in the News

• Long Island Business News turned to Alcott's Al Anastasi for his insight into seminars in its article titled, "On-the-job training." Al shared Alcott's experience hosting seminars for accountants and attorneys. "We give an overview of the intricacies of our (PEO) model, so they can advise clients," said Al Anastasi, director of sales. "A company that is considering outsourcing its HR might ask its CPA for advice. A CPA who doesn't know much about it might be wary and steer the client away from the idea. These seminars help accountants understand how the relationship works, and how the IRS looks upon our model, so that can talk about PEOs intelligently." (Note: Alcott's seminars for accountants and attorneys are accredited by the New York State Education Department for CPE and CLE credits, respectively.)



• Alcott was recently named a recipient of the prestigious 2008 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility. The award recognizes employers in select communities nationwide that are successfully using flexibility in the workplace to meet both business and employee goals in comparison with national data.

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