One Healthcare Issue Quieted, Others Ready To Roar

GOVERNMENTOne Healthcare IssueQuieted, Others Readyto RoarBy Stephen BarlasGiven what Congress went through over the course of ayear to pass the healthcare reform bill, it may soundslightly unbelievable to say “that was the easy part.” Butit’s true. In passing the Patient Protection and AffordableCare Act (PPACA), the Democrats glided over stickyissues in almost all of the hundreds of provisions, leavingthe Departments of Labor, Health and Human Services(HHS), and Treasury to define murky terms and indistinct authority grants during rulemakings, which willnow start streaming out of the bureaucracy like trainsfrom New York’s Grand Central Station at evening rushhour. Many of the earliest rulemakings—and theirregulatory cousins, guidance documents—will affectemployer health insurance plans, specifically for the nextcalendar year, and there will be big corporate buckshanging in the balance.But first some good news. One PPACA provision thatgot massive press after the bill was passed ends the taxdeductibility of the government subsidy to companiesfor providing retiree prescription drug coverage. Manybig companies predicted an accounting nightmare andargued the sky was about to fall. A House committeequickly began an investigation and scheduled a hearingfor April 21 to examine the impact of the accountingrequirement on large companies. Just as quickly the subcommittee cancelled the hearing, saying, in effect, thatafter talking with companies in the wake of PPACAbeing passed and looking at SEC filings that companiesmade, “The actual impact on annual company cash flowswill be only a fraction of the amount of the noncashcharges reported to the SEC.”Other concerns—mostly nonaccounting but stillfinancially related—have taken the place of the retireeprescription benefit issue, particularly two really majorones that kick in for plan years starting after September23, 2010. First, dependent children under the age of 26who don’t have access to another group health plan(perhaps from a second parent) must be included in thefirst parent’s health plan. Second, neither lifetime norannual limits for essential benefits can be imposed onany plan participant. Many companies have long forsworn annual caps on most benefits but retained themon what might be considered auxiliary benefits, such aschiropractic care or occupational therapy. Imminentguidance from HHS will dictate whether those two kindsof services and others currently under annual caps areconsidered essential, meaning the caps, a major means ofcost control, will have to go. Other post-September 23,2010, plan year requirements include tracking of eachemployee’s medical expenditures covered under thecompany plan and a totaling of those expenditures onthe employee’s W2. Companies aren’t doing this now,and payroll departments will have to gear up for thischallenge.We welcome all opinions on articles and departmentspublished in Strategic Finance. E-mail correspondence toKathy Williams at kwilliams@imanet.org.Strategic Finance and Management Accounting Quarterlyare now part of the LinkUp IMA online community.Join the IMA Publications Discussion Group athttp://linkupima.com/groups/c8c9e0e5b9/summary.r yn e2 021001 0I SI TSRTATE GEIGCI CF IFNIANNACNEC EF e b r u aJ uR AT1 51 5

Generous Contributions to IMAWe would like to thank and acknowledge the following IMA members, IMA chapters and councils, Stuart CameronMcLeod Society (SCMS), and companies who have made tax-deductible contributions to one or more of the followingIMA funds from January 1, 2009, to April 30, 2010:IMA Annual Conference & ExpositionIMA Foundation for Applied Research (FAR)IMA Leadership AcademyIMA Memorial Education Fund (MEF)IMA Student Leadership ConferenceStuart Cameron McLeod Society (SCMS) Scholarship FundTax-Deductible ContributionsReceived from January 1,2009, to December 31, 2009:Tax-Deductible ContributionsReceived in 2009 Designated toIMA Annual Conference &ExpositionHon. Kim R. Wallin, CMA, CFM, CPATax-Deductible ContributionsReceived in 2009 Designated toIMA Foundation for AppliedResearch (FAR)Nisreen K. Al AdhamMurtadha M. Al HashemiFaisal Al Midfa, CMA, CFMWael H. Al Rasheed, CMAMohammad O. Alkharashi, CMA, CFMHashim M. AlsafadiReem O. AnabtawiKhaled A. Awad, CMAPablo N. BaretaMichael V. Byrne, CMAHorace Hing Cheung Poon, CPADer Jiun Chiu, CMA, CFMRonald Cameron Cockrell, CPARoyce I. Crane, CPADavid A. Dashewich, CMA, CFM16S T R AT E G I C F I N A N C EIJune 2010Nigel G. DawsonStanley B. DeHart, Jr., CPAJoseph J. DioGuardi, CPADenis V. DolzhikovRolland A. EckBrent Elliott, CMA, CPADr. Dan ElnathanDr. Attila A. Freska, CMABrian B. Fryman, CMAAlexandr A. Gazarov, CMA, CFMDr. Hubert D. Glover, CMA, CPA,CIA, CITPDr. Sylwia Gornik-Tomaszewski,CMA, CFMKeith R. Gudgel, CMA, CFMNassr Haj Ali BekBaoqing Han, CMADr. Rebecca L. HannanZheng Huang, CMALiang-Fang Hwang, CMADr. Pamela Z. Jackson, CPARutger J. Jans, CMA, CFMShin Won Kang, CMAFayas KhanNarasimha D. Kini Gurpur, CMA, CFMLeslie J. KnoxAmyn Mohammad LadhaniReynaldo Landa, CPADana E. Landry, CMAJohn K. Lau, CMA, CFM, CPAGeorge G. Li, CMA, CPAJuan A. Lovera, CMA, CFMAthba S. MajeedBarry J. Nathan, CMAJeremy NowakDimitris Oktapodas, CMALisa S. Pendergrass, CMA, CPAVan Anh Le PhamDr. Giuseppe Poggi, CPAPatricia M. PoliJohn V. RestuccioDr. Sandra B. Richtermeyer, CMA, CPAWilli N. RihlmannMartin E. ShmaginCindy A. Stark-Jones, CMAJames E. Stenseth, CMAOsama H. TahaKacou Honore TanoDr. Curtis C. Verschoor, CMA, CPALiv A. WatsonGeoff L. WilliamsRobert J. WilsonBing Xiang, CMATao Xue, CMA

Tax-Deductible ContributionsReceived in 2009 Designated toIMA Leadership AcademyMargaret D. Butler, CMA, CPAWilliam F. Knese, CMA, CFM, CPAC.S. “Bud” Kulesza, CMA, CFMJohn C. Macaulay, CMAJ. Stephen McNally, CPABarry J. Nathan, CMAJohn B. Pollara, CMADr. Carl S. Smith, CMA, CFM, CPAJames K. Smith III, CMAJeffrey C. Thomson and IMAGlobal StaffJoseph A. Vincent, CMAIMA Tulsa ChapterTax-Deductible ContributionsReceived in 2009 Designatedto IMA Memorial EducationFund (MEF)Kathleen A. Adams, CPAKhaled J. Al Kayed, CMA, CFMFaisal Al Midfa, CMA, CFMWael H. Al Rasheed, CMAEman B. AlabdulrazzaqReem O. AnabtawiKhalad A. Awad, CMAJoseph A. Boateng, CPAJohn M. Brausch, CMA, CFM, CPADr. Timothy D. CairneyLeRoy D. CammererRobert D. Capell, Jr., CPABonnie J. Chambers, CMA, CFM, CPAYuen-Ching Choi, CMAGabo ChongSteven D. and Sandra J. CrumpJ. Brett Dailey, CMAStanley B. DeHart, Jr., CPADr. Robert A. Deutsch, CPALoutfi K. Echhade, CMA, CFM, CPA,CIA, CCSA, CFSA, CISAHussein Hassan Eid, CMARiad M. EidDr. Attila A. Freska, CMAAlexandr A. Gazarov, CMA, CFMChurchhill S. GilbertDr. Hubert D. Glover, CMA, CPA,CIA, CITPDr. Sylwia Gornik-Tomaszewski,CMA, CFMBaoqing Han, CMACharles L. HartnettHorace Hing Cheung Poon, CPAChristopher M. HollowayRutger J. Jans, CMA, CFMBernice N. JohnsonShirine M. Kamal, CMAWaleed Khan, CMADavid S. KiesslingTatiana Kim, CMA, CFMPaul J. KuhnsC.S. “Bud” Kulesza, CMA, CFMRebecca A. KuzmikAmyn Mohammad LadhaniJohn K. Lau, CMA, CFM, CPARafael Leon Ferreiras, CPAPamela K. Loy, CMA, CPAPavel LyzhinAthba S. MajeedEugene T. MakinoYuriy MankoShahul Hameed MohamedMohideen, CMAFaisal Ghulam MohammedSusan E. Molineux, CMA, CPABarry J. Nathan, CMAKrishna Kumar Padmanabhan, CMARajkumar Patra, CMALisa S. Pendergrass, CMA, CPAEugene R. PibalDr. Giuseppe Poggi, CPAJohn B. Pollara, CMADharmavir PudaruthShankar Ramasubramaniam, CMADoreen J. Remmen, CMAJohn V. RestuccioDr. Sandra B. Richtermeyer, CMA, CPAGregg Rubenstein, CMA, CPAEdward J. Santos, CPADmitry SavvinHolger ScheppelmannDaniel E. SchumerNanda Senathi, CMA, CPAMartin E. ShmaginDr. Sue Perrott Siferd, CMA, CPADr. Carl S. Smith, CMA, CFM, CPAJames K. Smith III, CMADuane G. Sonneborn, Jr.Florelyn P. Soriano ArriolaDeborah L. Sudall, CMAKacou Honore TanoGerald T. Thomas, CMA, CPAMarlene UdovichJohn K. VanNostrandSamer M. Wahbeh, CMAHon. Kim R. Wallin, CMA, CFM, CPAMengya WangLiv A. WatsonWilliam L. Welch, CMA, CPAGeoff L. WilliamsMark C. Woodbury, CMAJuanita E. YoungYou ZhouTax-Deductible ContributionsReceived in 2009 Designatedto IMA Student LeadershipConferenceC.S. “Bud” Kulesza, CMA, CFMRonald D. Luther, CMA, CPAIMA Greater Ozarks ChapterIMA Heartland Regional CouncilIMA Kansas City ChapterIMA North Central Regional CouncilIMA Northwest Arkansas ChapterIMA Oklahoma City ChapterIMA Quincy Area ChapterIMA St. Louis ChapterIMA Tulsa ChapterIMA Wichita ChapterLand O’LakesStuart Cameron McLeod Society (SCMS)The Crosby GroupContributions continue on next pageJune 2010IS T R AT E G I C F I N A N C E17

Tax-Deductible ContributionsReceived in 2009 Designated tothe Stuart Cameron McLeodSociety (SCMS) ScholarshipFundWaldo E. Aguasvivas SotoNafla H. Al AmeriFaisal Al Midfa, CMA, CFMWael H. Al Rasheed, CMAEman B. AlabdulrazzaqMazen N. Amineddine, CMA, CFMReem O. AnabtawiKenneth M. AshfordThomas A. AttivissimoKhaled A. Awad, CMAVictor M. Ayala LancherosHarald BiederbickDaryl E. Booi, CMA, CFM, CPAGary R. Brown, CMA, CPASumaiya Burud, CMADr. Timothy D. CairneyLeRoy D. CammererRobert D. Capell, Jr., CPAJames H. Childers, CPAYuen-Ching Choi, CMAGabo ChongRobert G. ClaphamJohn DeCapio, Jr.Stanley B. DeHart, Jr., CPAJohn E. Delaney, CPADr. Robert A. Deutsch, CPABrenda L. Domico, CMALawrence A. Dunkelman, CPAJeffery A. EgerstromMichelle K. EmmonsDr. Kel-Ann S. EylerAntoinette M. FowlerGlenn N. Francis, Jr.William M. FraserDr. Attila A. Freska, CMAAlexandr A. Gazarov, CMA, CFMChurchill S. GilbertDr. Hubert D. Glover, CMA, CPA,CIA, CITPDavid E. Grebe, CMAIrina GreerVern H. GumzHassan K. Hamadeh18S T R AT E G I C F I N A N C EIJune 2010Andrea M. HansenDenise D. Hards, CMADr. Joseph M. Hargadon, CMA, CPADonald Hartman, CPARolf S. JaehnigenRutger J. Jans, CMA, CFMMuneer Kadavath Valappil, CMAAhmad Khawaja, CMAHak Won Kim, CMATatiana Kim, CMA, CFMWilliam F. Knowles, CMA, CFM, CPAZujar Hatimbhai KushalgadhwalaAmyn Mohammad LadhaniAmy Y. LauJohn K. Lau, CMA, CFM, CPARebecca R. Lemoge, CMA, CFM, CPAPamela K. Loy, CMA, CPAJoseph Luther, CMADeepti P. Makhija, CMAEugene T. MakinoE.M. Malone, CMA, CPAYuriy MankoMirjana MarinkovicSuzann L. Mendoza, CMAShahul Hameed MohamedMohideen, CMASusan E. Molineux, CMA, CPABashar M. Mraish, CMA, CFMJames J. Mulligan, CMA, CPABarry J. Nathan, CMADimitris Oktapodas, CMAKrishna Kumar Padmanabhan, CMAPam Prinz StewartDharmavir PudaruthJohn V. RestuccioDr. Sandra B. Richtermeyer, CMA, CPAReverend Richard M. Rodgers, CMAJames R. RomesbergLydia M. RubioTadros Safwat RoshdyJoel L. Scheetz, CMAMartin E. ShmaginDr. Sue Perrott Siferd, CMA, CPAJames E. SmithJames K. Smith III, CMAWilliam R. SmithDuane G. Sonneborn, Jr.Rex D. SoutarCindy A. Stark-Jones, CMAJerrod SteinJames E. Stenseth, CMARavi SubramaniamJeffrey C. Thomson and IMAGlobal StaffChristi C. Todd, CPAJerry A. Van Os, CMA, CFM, CPAMichael L. WaldschlagerLiv A. WatsonGeoff L. WilliamsLori G. WorleyCigdem D. YazarJuanita E. YoungSusan ZabelIMA North Central Regional CouncilTax-Deductible ContributionsReceived from January 1,2010, to April 30, 2010:Tax-Deductible ContributionsReceived in 2010 Designated toIMA Foundation for AppliedResearch (FAR)Mohammad O. Al GhamdiEman B. AlabdulrazzaqWael W. Attalla, CMAMisako ConneryJoseph J. DioGuardi, CPALiang-Fang Hwang, CMADavid R. JohnsonReynaldo Landa, CPAJohn K. Lau, CMA, CFM, CPAChing Fu LienCornelis A. Luijendijk, CMAWilliam J. McHughAhmed I. Mohamed GaberBenjamin R. Mulling, CMA, CPA, CITPLisa S. Pendergrass, CMA, CPAJohn M. Pinnell, CMADr. Giuseppe Poggi, CPAJose F. Roy, CMA, CFMDr. Sajay Samuel, CMAMarinez P. ShieldsIvo D. TafkovOsama H. Taha