In the Loop – November
Report Shows More Employers Are Adapting Pay Transparency Practices
States and localities have been adding pay transparency requirements since 2021, with even more set to go into effect. Effective Oct. 1, 2024, Maryland employers must disclose certain wage range information in all public and internal job postings. Furthermore, Illinois, Vermont and Minnesota are adding pay transparency rules that will be implemented in 2025.
How, Where and When to Vote in Upcoming Elections
Election Day is Tuesday, Nov. 5, 2024. If you plan to vote, you must register to become a voter. Every state requires this except North Dakota. Some states allow you to register on the day you vote; others may require advance registration.
Benefits Buzz – Final Forms and Instructions for 2024 ACA Reporting Now Available
The IRS has released final 2024 forms and instructions for reporting under Internal Revenue Code Sections 6055 and 6056.
No major changes were made to the final forms and instructions for 2024 reporting. As a reminder, the electronic filing threshold for returns required to be filed on or after Jan. 1, 2024, is 10 or more returns (originally, the threshold was 250 or more returns). This requirement applies in the aggregate to certain information returns. Accordingly, a reporting entity may be required to file fewer than 10 of the applicable Form 1094 and 1095 but still have an electronic filing obligation based on other kinds of information returns filed (e.g., Forms W-2 and 1099).
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.
Benefits Buzz – ACA’s Pay-or-Play Affordability Percentage Increases for 2025
On Sept. 6, 2024, the IRS released the affordability percentage threshold for 2025 plan years under the Affordable Care Act’s(ACA) pay-or-play rules. These rules require ALEs to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty.
For plan years beginning in 2025, employer-sponsored coverage will be considered affordable under the ACA’s pay-or-play rules if the employee’s required contribution for self-only coverage does not exceed 9.02% of their household income for the year. This is an increase from the affordability percentage for 2024 plan years (8.39%). Due to this increase, applicable large employers (ALEs) may have more flexibility when setting employee contribution levels for the 2025 plan year.
In the Loop – September
Consumer Prices Dropped in June For the First Time in 4 Years
The U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) rose 3% year over year in June, declining from 3.3% in May. This is the first time since May 2020 that the monthly rate has shown a decrease.
The Importance of Routine Vaccinations
The World Health Organization reports that vaccinations prevent between 3.5 million and 5 million deaths each year from diseases like diphtheria, influenza (flu), measles and tetanus. By staying updated with recommended vaccines, adults can significantly lower their chances of contracting preventable diseases and stay healthier for longer.
Benefits Buzz – DOL Updates Model Employer CHIP Notice
The U.S. Department of Labor (DOL) has released a new model employer Children’s Health Insurance Program (CHIP) notice with information that is current as of July 31, 2024.
The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) imposes an annual notice requirement on employers who maintain group health plans in states that provide premium assistance subsidies under a Medicaid plan or a CHIP plan.
In the Loop – August
The Impact of SCOTUS Overruling Chevron Deference
On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo
and Relentless Inc. v. Department of Commerce. The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc., which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference). Congress has the authority to pass laws that govern employers, and federal agencies have the authority to enforce those laws. To fill in any gaps or to remedy ambiguities, federal agencies may issue more detailed guidance on how the laws should be interpreted and applied.
Benefits Buzz – 5th Circuit Requires Health Plans to Continue Providing Free Preventive Care
The 5th U.S. Circuit Court of Appeals recently ruled that a key component of the Affordable Care Act’s (ACA) preventive care mandate is unconstitutional. However, in a decision it referred to as a “mixed bag,” the 5th Circuit limited its ruling to the plaintiffs in the case, a small group of individuals and businesses from Texas.
The ACA requires non-grandfathered health plans and issuers to cover a set of recommended preventive services without imposing cost-sharing requirements, such as deductibles, copayments or coinsurance, when the services are provided by in-network providers.
In the Loop – July
Biden Administration Cancels $7.7 Billion in Student Debt for 160,000 Borrowers
On May 21, 2024, President Joe Biden announced that an additional 160,000 Americans would get
their student debt—a collective $7.7 billion—canceled. With this move, the Biden-Harris administration has offered a total of $167 billion in loan forgiveness to 4.75 million Americans.
Benefits Buzz – PCORI Fees are Due by July 31st and Group Health Plan Fiduciary Litigation on the Rise
The Affordable Care Act requires employers with self-funded health plans and health insurance issuers to pay Patient-Centered Outcomes Research Institute fees (PCORI fees). The fees are reported and paid annually using IRS Form 720, the Quarterly Federal Excise Tax Return. Form 720 and full payment of the PCORI fees are due by July 31 of each year and generally covers plan years that end during the preceding calendar year.
The Employee Retirement Income Security Act of 1974 (ERISA) includes strict standards of conduct for fiduciaries, those who manage employee benefit plans and their assets. A new class action lawsuit
highlights the importance of employers’ adherence to their fiduciary duties when managing their group health plans.
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.
