Survey: Employee health benefit costs on the rise

   CHICAGO - (BUSINESS WIRE) - 4/28/2011 - The cost of claims in employer-sponsored health plans continues to increase, according to a recent trend survey by Wells Fargo Insurance Services. Although the rate is slightly lower than six months ago, the survey found overall claim cost will continue to increase in the low double-digits.
    “Our survey results show that employers continue to seek sophisticated ways to manage employee health risk, stretch their employee benefit dollars and minimize costs”
   With more than 60 insurance companies participating, the nationwide survey was conducted between February and March 2011. Reflecting claim activity over a six-month period, projected increases in the national average cost of claims include:

• Health maintenance organizations (HMO) and point-of-sale plans (POS) - 9.6 percent increase
• Preferred provider organizations (PPO) and consumer driven health plans (CDHP) - 10 percent increase
• Exclusive provider organizations (EPO) – 10.6 percent increase
• Indemnity plans – 11.1 percent increase
• Prescription plans - 8.7 increase

   Dan Gowen, senior vice president of Wells Fargo Insurance Services, said the continued cost increase suggests employer premiums will rise at a similar rate, as insurance companies anticipate costs based on claim trends.
   “Our survey results show that employers continue to seek sophisticated ways to manage employee health risk, stretch their employee benefit dollars and minimize costs,” said Gowen. “That’s especially true as insurers expect higher claim costs as a result of market changes brought on by federal healthcare reform.”
   The survey found that, in addition to healthcare reform provisions, claim cost is influenced by increased use of healthcare services, aging U.S. population, improvements in medical technology and drug therapies, use of specialty drugs to treat complex diseases, changes in provider treatment patterns, and inflation. Finally, in comparison to the prior six months, the survey also showed dental and vision benefit products remain stable.
   Wells Fargo Insurance services has conducted this biannual survey since 2008. The company will open its next survey in late summer 2011.

Driving Under the Influence of Drugs? Watch Out

   By Diane S.W. Lee (Illinois Statehouse News) - 4/25/2011 - If you get behind the wheel with traces of illegal drugs in your body, you potentially could face a prison sentence. The Illinois Supreme Court on April 21  handed down the opinion in People v. Martin, reinstating Aaron Martin’s original conviction of aggravated driving under the influence and a six-year prison sentence.
    Peoria County Circuit Court prosecutors convicted Martin of a charge of aggravated DUI because he was driving with methamphetamine in his body when his car crashed into an oncoming car, killing two people on Christmas night 2004.
   The six other state justices unanimously concurred with Supreme Court Justice Mary Jane Theis’ 10-page opinion, which overturned the appellate court decision that ruled there was no “causal connection” to prove the drug had caused the crash, since the effects of the drug had likely worn off.
   “In this case, it was shown that defendant driver caused the accident. Thus, there was no need to prove that he suffered from any degree of impairment which caused the accidental fatalities,” according to the high court's opinion.
    Under the state‘s vehicle code, it is a crime for any person to drive under the influence of alcohol, intoxicating compounds or drugs, including marijuana and meth that would make them unable to drive safely. 
   If they are involved in an accident resulting in a death, then it would “aggravate” the sentence.
   Ronald Smith, professor at the John Marshall Law School in Chicago, said the law has harsh consequences for those who are unaware.
   “The legislature, for whatever reason, decided to go this far,” Smith said.
    The Supreme Court notes that causing physical injury to others by driving under the influence of drugs would turn a misdemeanor DUI into a felony.
    "Any misdemeanor DUI can become aggravated DUI if the violation causes a death," according to the high court's opinion.
    Martin drove home from a Peoria bar at night on Dec. 25, 2004, when he crossed the center of a two-lane state highway, and collided with a car, killing two people. He was hospitalized and given a narcotic painkiller.
    The Illinois State Police tested Martin's blood and urine samples. A forensic scientist found “trace amounts” of methamphetamine in his urine, but no alcohol.
    Martin denied using meth the night of the accident, even though he admitted to using it before. He insisted the state needed to prove whether key ingredients ephedrine or pseudoephedrine, which are used to make medicine and meth, were in his system instead of meth itself.
    "There was evidence, however, that he had used methamphetamine, and evidence that no other substances in his urine could have yielded a false positive result," according to the high court's opinion.
    People are taking a risk if they are under the influence of illegal drugs behind the wheel, Smith said.
    “It sends a message: If you do methamphetamine or some of these other drugs and you drive,” Smith said.   “Regardless, if it has any impact on the way you drive — you have committed a felony, and you can go to prison.”
    Story courtesy of Illinois Statehouse News (originally published April 21, 2011)

Adviser Pleads Guilty in $7 Million Ponzi Scheme

   MICHIGAN - 4/21/2011 - Dante DeMiro, 43, of Milford, pled guilty on April 19 to five counts of bank and wire fraud, United States Attorney Barbara McQuade has announced. Sentencing is scheduled for July 12 at 10 a.m. before the Honorable Lawrence P. Zatkoff in Port Huron, Mich.
   According to court documents, DeMiro was an investment adviser to various municipalities, credit unions, school districts, and trade unions through his Southfield-based companies MuniVest Financial Group and MuniVest Services LLC.
   From August 2007 to September 2010, DeMiro used the MuniVest entities to operate a bank and wire fraud Ponzi scheme. DeMiro falsely promised investor clients that he would invest their funds in various certificates of deposit. He did not invest their funds as promised, but instead, used their funds to purchase personal items and real property, to gamble, to make payments to other investors in the same scheme, and to make loans to several individuals and a local jewelry store.
   DeMiro stipulated that the loss caused by his fraud exceeds $7 million, and that he abused a position of trust in his fiduciary capacity as an investment adviser.
   “We have seen more and more of these investment schemes, which prey upon school districts, municipalities, and unions,” McQuade said. “Our hope is that cases like this one will deter other investment advisers from stealing from these vulnerable investors.”
    The case is being prosecuted by Assistant United States Attorney Erin Shaw. Joining in the announcement was Special Agent in Charge Andrew Arena, Federal Bureau of Investigation (FBI).
    “Today's swindlers artfully conceal their greed with sophisticated marketing and numerous misrepresentations. Investors and pension plan participants must remain diligent in following their money,” Arena stated.
   Source: U.S. Department of Justice release.

CDC Cites Widespread Food Contamination in U.S.

   NEW YORK - (BUSINESS WIRE) - 4/16/2011 - According to the U.S. Centers for Disease Control, up to 48 million cases of illness in the United States each year are caused by spoiled or contaminated food. Many of these come from fresh produce that is consumed in its raw state. Two ways to ameliorate this “epidemic” are to improve our control over the conditions in which food is kept as it moves from farm to consumer markets or to enhance the traceability of food shipments within the supply chain.
   New US legislation (The Food Safety Modernization Act) focuses on the establishment of industry-wide data standards for this information, and requires the FDA to develop and publish regulations that address the prevention of foodborne disease outbreaks.
    According to ABI Research principal analyst Bill Arnold, “RFID (Radio Frequency Identification) systems with temperature sensors can contribute to less tainted produce and provide the same standards-based tracing, while delivering information that could prevent as much as $35 billion/year in wasted produce.”
    Once the initial FDA trials–to be conducted in partnership with industry associations such as the United Fresh Produce Association for produce and the American Meat Institute for fresh meats–are completed, the question will be: which stakeholders in the industry will actually buy and use these systems?
    “That is a very big question,” Arnold said. “It is of most benefit to food retailers, but they don't control the harvest point or the shipper, so it's a matter of who decides they either have the clout or the ability to make it happen. Self-interest and liability limitation will be the motivators. In some cases large retail chains will buy RFID systems and require their suppliers to use them. In other cases, large food brands such as Dole, Hawaiian Tropic, Chiquita and others may invest to promote their food freshness and safety, allowing them to justify a premium price.”
    ABI Research’s new “RFID-enabled Food Safety and Traceability Systems” study (http://www.abiresearch.com/research/1006522) reviews the Food Safety Modernization Act’s impact on food-industry use of auto ID technology in both the short and intermediate terms. It provides forecasts for the use of RFID-enabled data logging devices from 2010 through 2015 in cold chain applications.
    The report is part of the RFID Research Service (http://www.abiresearch.com/products/service/RFID_Research_Service). ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies.