Legal Update: Proposed Rule Would Expand ACA’s Contraceptive Coverage Mandate
On Oct. 21, 2024, the Departments of Labor, Health and Human Services, and the Treasury released a
proposed rule that, if finalized, would expand access to contraceptive coverage without cost sharing under the Affordable Care Act’s(ACA) preventive care mandate. Notably, the proposed rule would require most health plans and health insurance issuers to cover over-the-counter (OTC)contraceptives without imposing cost sharing (e.g., deductibles, copayments or coinsurance) or requiring a prescription.
Legal Update: DOL Targets Employment-related Contract Provisions
On Oct. 15, 2024, the U.S. Department of Labor’s (DOL) Office of the Solicitor(SOL) released a
special enforcement report indicating seven “fine-print”employment-related contract provisions that the SOL is targeting to help ensure that workers receive the pay and protections they are guaranteed by federal labor law. The report also highlighted innovative approaches the SOL is taking to combat contract provisions that may discourage workers from exercising their rights under federal labor law.
News Brief: Workers Likely to Explore Job Market in 2025, According to Report
Although employee quits have trended down in 2024, EY’s 2024 Work Reimagined Survey report found that 38% of employees are likely to leave their jobs in the next year. According to the survey results, EY advises that to maintain a talent advantage,employers may need to hone their attraction and retention tactics to prioritize enhancing workplace culture, expanding rewards and building agile employee skill sets.
“The global workforce has evolved into one with personalized experiences and expectations, increasingly disconnected from one- size-fits-all ideas of career, total rewards and work location.”
– EY’s 2024 Work Reimagined Survey report
News Brief: Jobs Total Up, Hiring Continues to Slow Down in September
In its latest Employment Situation Summary, the U.S. Bureau of Labor Statistics (BLS) reported that job gains in September exceeded expectations, with employers adding 254,000 jobs instead of the approximate 140,000 expected by economists. This is the largest increase since March 2024, when 303,000 jobs were added. It’s also above the average monthly gain of 203,000 over the prior 12 months.
While job totals are up, overall hiring has slowed throughout the year. According to the most recent Job Openings and Labor Turnover Summary from the BLS, hiring levels diminished by about 100,000 from July to August 2024 but are trending down substantially from one year prior.
The unemployment rate changed little at 4.1% but remains higher than one year ago. This stability in unemployment suggests that, despite the increase in job totals, the market is taking a guarded approach to hiring. Economists attribute the slow down in hiring to several factors, including economic uncertainties and businesses’ caution to expand their workforce amid fluctuating market conditions.
Career Elevator: How to Be a Better Listener at Work (October)
In today’s fast-paced work environment, effective communication is more important than ever. One of the most crucial aspects of communication is listening. Being a good listener at work enhances communication, builds stronger relationships and boosts productivity by ensuring messages are accurately received and understood. It also reduces conflicts and encourages open dialogue, leading to a more positive and collaborative work environment.
Legal Update: IRS Allows Employees to Allocate Employer Contributions Among Various Benefits
The IRS has released a private letter ruling (No. 202434006) approving an employer’s program that gives employees the option to direct employer contributions toward several different offered benefits. A private letter ruling, or PLR, is a written statement issued to a taxpayer in response to a written request that interprets and applies tax laws to the taxpayer’s represented set of facts. While a PLR may not be relied on as precedent by other taxpayers, the PLR provides important insight into how the IRS might view similar employer programs.
Compliance Bulletin – Deadline for Submitting Gag Clause Attestation Is Dec. 31, 2024
Effective in 2020, the Consolidated Appropriations Act, 2021 (CAA) prohibits health plans and health insurance issuers from entering into contracts with health care providers, third-party administrators (TPAs) or other service providers that contain gag clauses (i.e., clauses restricting the plan or issuer from providing, accessing or sharing certain information about provider price and quality and de-identified claims).
Plans and issuers must annually submit an attestation of compliance with the CAA’s gag clause prohibition to the Departments of Labor, Health and Human Services, and the Treasury (Departments). The first attestation was due on Dec. 31, 2023. The next attestation is due Dec. 31, 2024, covering the period since the last attestation.
Legal Update: IRS Expands List for Preventive Care Benefits for HDHPs
On Oct. 17, 2024, the IRS issued Notice 2024-75 (the Notice) to expand the list of preventive care benefits permitted to be provided by a high deductible health plan (HDHP) without a deductible (or with a deductible below the minimum deductible) to include:
- Over-the-counter (OTC) oral contraceptives, including OTC birth control pills and emergency contraceptives, for individuals potentially capable of becoming pregnant, regardless of whether they are purchased with a prescription; and
- Male condoms, regardless of whether they are purchased with a prescription and regardless of the gender of the individual covered by the HDHP who purchases them.
Legal Update: Oct. 15 Deadline Approaching for Part D Notices and Form 550 Extensions
As a reminder, the deadline to distribute Part D notices and the extended Form 5500 filing deadline for calendar year plans is Oct. 15, 2024. This deadline applies to employers with group health plans that provide prescription drug coverage and those with calendar year employee benefit plans that previously requested an extension of time to file their Form 5500, respectively.
In the Loop – October
Report Finds Weight Lose Drugs Key Driver of 2025 Health Care Cost Increase
A recent Business Group on Health (BGH) survey found that heightened interest and spending on glucagon-like peptide-1 (GLP-1) drugs is a major driver of rising health care costs in 2025. The medications were traditionally used to treat diabetes but are now in demand for weight loss.
White House Announces Results of Medicare Drug Price Negotiations
Recently, the Department of Health and Human Services (HHS) reached agreements with top drugmakers to lower prices for the first 10 drugs subject to Medicare price negotiations. After months of negotiation beginning last October, the agreed-upon drug discounts range between 38% and 79%. The new pricing for Medicare Part D enrollees goes into effect on Jan. 1, 2026.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
