===========================================================
Contents
===========================================================
QUOTE OF THE MONTH
HEALTH INSURANCE FEES ON THE RISE
MEDICAL SAVINGS ACCOUNTS GET BETTER
PERFORMANCE MANAGEMENT IS NOT AN ANNUAL APPRAISAL!
CHALLENGES OF HUMAN RESOURCE EXECUTIVES
PARTING SHOTS
===========================================================
QUOTE OF THE MONTH
===========================================================
"Here is the test to find whether your mission on Earth is
finished: if you're alive, it isn't."
-Richard Bach
===========================================================
HEALTH INSURANCE FEES ON THE RISE
===========================================================
By Belinda Heggen
HEALTH insurance premiums are set to rise by as much as 8
per cent this year as insurers battle an ageing population
and increased service and technology costs.
Click here for full article

It might be a good time to revisit the value of voluntary
programs.

Click here for the financial impact calculator.


Get a qualified local agent click here;


===========================================================
MEDICAL SAVINGS ACCOUNTS GET BETTER
===========================================================

Sat January 10, 2004 10:42 AM ET -- By Linda Stern -
WASHINGTON (Reuters) - If you like having an Individual
Retirement Account, you'll love the even sweeter deal that
was tucked into the Medicare prescription benefit bill
that Congress passed at the end of 2003. The legislation
established new tax-deductible medical savings accounts
that could be the best savings vehicle yet. Healthcare
Savings Accounts (HSAs) debuted on Jan. 1, so watch and
wait for them to come to market. "These are going to be a
huge deal. They're like a flex spending account on
steroids, they're better than an IRA," enthused Richmond,
Virginia, financial planner David E. Hultstrom. "My
plan will be to stuff away as much money as possible."

Anyone with a high-deductible health insurance plan and
not on Medicare is eligible to open one of these accounts
and contribute as much as $2,600 (single), $5,150 (family)
and an additional $500 (for those over 55) this year. That
contribution is fully tax deductible and if the money is
withdrawn to pay for health-care costs -- including over-
the-counter medicines, eyeglasses and more -- it becomes
tax free forever. Furthermore, the money does not have to
be spent down every year. It's a back door, tax-free way
to save for retirement. Feed it to the max every year, get
a tax deduction regardless of your income level, and then
build up a kitty to spend down when you're paying doctor
bills in dribs and drabs after you retire. No taxes, ever.

Self-employed workers who take advantage of this may get
an even better break: They can set it up in their company
and deduct it as a business expense, offsetting the double
Social Security and Medicare taxes that self-employed
workers pay, according to Hultstrom. Why wouldn't you want
to do this? The catch is that you have to currently have a
high-deductible medical plan to qualify. If you're one of
the few whose employer still pays all costs for a low-
deductible plan, that's probably a better deal. But most
Americans, even those with employer-provided insurance,
can opt for a high-deductible plan, save themselves some
premium payments and a boatload of taxes.

If you end up pulling money out after retirement for non-
health related costs, it will be subject to income tax,
but that's no worse than a deductible IRA or 401(k)
account. If you die with money in your account, it will
pass to your beneficiaries just like an IRA. Only a
smattering of insurance companies currently offer these
new plans, though they are likely to come to market from
banks and other financial companies by the middle of the
year. All you have to do to get the tax breaks this year
is open the account and feed it before Dec. 31, so you've
got almost a year to get ready.

Fortis Health, a Milwaukee insurance company that was one
of the first out of the block with a complete plan, has
more than 1,000 applications pending in the first week of
offering HSAs; and it only provides the HSAs to its health
insurance clients. Most health-insurance plans, even those
with high deductibles, are structured so that they might
not fit the IRS's description of a qualified plan. For
example, the IRS says a high-deductible plan is one that
requires a deductible of $1,000 for an individual or
$2,000 for a family. But a family with a $2,000
deductible, $1,000 individual deductible plan that starts
paying out when any family member's covered costs exceed
$1,000, would not qualify.

If that's the kind of insurance you have, it's a good time
to start bugging your insurance company to see if they
will modify the plan, or start looking elsewhere for
insurance. In general, it's a good idea to buy high-
deductible insurance if you can afford it because the
monthly premiums tend to be far less than they are for low-
deductible plans. You can save money by sweating the small
stuff yourself. However, don't rush into the first HSA you
find. Surely by the third quarter of 2004, there will be
enough competition in the market so that you can carefully
consider the fees, investment practices and withdrawal
mechanics of the various plans out there. Then find your
plan and fill it -- there's really no downside to this
deal.

===========================================================
PERFORMANCE MANAGEMENT IS NOT AN ANNUAL APPRAISAL!
===========================================================

A Whole Different Focus
Susan M. Heathfield
Click here for full article

===========================================================
CHALLENGES OF HUMAN RESOURCE EXECUTIVES
===========================================================

Those with experience at managing HR at the highest level
will tell you that their job is not an easy one.

This is not due to technical complexity. It's because of
the need to balance the politics of the organization and
professionalism. Talking to HR executives occupying line
positions will leave you wondering how they are managing
to survive in organizations seemly characterized by chaos
and disrespect for "people assets".

Employees on the other hand have the mistaken belief that
any people related issues that are not addressed are a
result of HR inefficiency.
Click here for full article

===========================================================
VIRUS ALERTS
===========================================================
The Department of Homeland Security, in its 09 January
2004, Daily Overview report warn of a bogus e-mail
supposedly sent by the FBI. It asks you to open an
attachment which launches a virus.

If you receive this, please delete it without opening it.

The DHS warning follows:

January 07, The Register — Bogus FBI warning file contains
malware. Virus writers are attempting to trick music fans
into opening malicious code with a message purporting to
arise from an FBI investigation into illegal file trading.
Recipients of the bogus warning are told they are under
investigation. Infectious emails contain an attachment
allegedly containing evidence against the 'accused' which
actually contains Windows malware, the Melbourne Age
reports. The message appear authentic but closer inspection
reveals factual errors and spelling mistakes that give the
game away.

Source: Click here for Source Article
Check out ID Theft Scams -
http://www.thebenefitnetwork.com/IDtheft.htm
Check out Virus Alerts in the Archives
http://www.thebenefitnetwork.com/November-Benefit-Report.htm

===========================================================
Suggested Reading
===========================================================
Employee Benefit Plans in a Nutshell
Jay Conison New $23.50!

Employee Benefits
Burton T. Beam Jr....
New $57.68

Harvard Business Review on Compensation...
Alfred Rappport
New $13.97!

The Handbook of Employee Benefits
Jerry S. Rosenbloom ..New $115.00!

Check Them Out Here;
http://www.thebenefitnetwork.com/reading1.htm

===========================================================
Pass it along -Forward These Tips to a Friend
===========================================================
Getting this copy second hand? If you are an HR manager or
insurance broker you can get your own copy each month for
free.
This ezine may be opt-in at:
http://www.thebenefitnetwork.com/news.html

===========================================================
PARTING SHOTS
===========================================================
The chef at a hotel in Switzerland lost a finger in a meat
cutting machine and, after a little hopping around,
submitted a claim to his Insurance company. The company,
suspecting negligence, sent out one of its men to have a
look for himself. He tried the machine out and lost a
finger. The chef's claim was approved.

===========================================================
General & Unsubscribe Info
===========================================================

The Benefit Network January 2004 Edition © Copyright 2004,
The Benefit Network, except where indicated otherwise.
All rights reserved worldwide. Reprint only with permission
from copyright holder(s). All trademarks are property of their
respective owners. All contents provided as is.

This ezine may be accessed online at:
www.thebenefitnetwork.com//January04-Benefit-Report.htm


Please feel free to use excerpts from this newsletter
as long as you give credit with a link to our page:
www.thebenefitnetwork.com

===========================================================
The Benefit Network - PO 121 - Barrington, IL 60010

The Benefit Network Report is an opt-in ezine available
by subscription only.