News Brief: Health Care Costs 254% Higher for Privately Insured Patients Than Those With Medicare
A new RAND report revealed that in 2022, private insurers paid hospitals an average of 254% more than what Medicare would have paid for the same services, a jump from 224% in 2020. The study found that 2022 prices for inpatient hospital facility services averaged 255% of Medicare prices, outpatient hospital facility services averaged 289% and associated professional services averaged 188%.
“The widely varying prices among hospitals suggests that employers have opportunities to redesign their health plans to better align hospital prices with the value of care provided. However, price transparency alone will not lead to changes if employers do not or cannot act upon price information.”
Brian Briscombe, leader of the RAND hospital price transparency project
Legal Update: Deadline Reminder: RxDC Reports Are Due by June 1, 2024
Group health plans and health insurance issuers must annually submit detailed information on prescription drug and health care spending to the federal government. This reporting is referred to as the “prescription drug data collection” (or “RxDC report”). This is an annual reporting requirement—plans and issuers must submit these reports by June 1 of each year, covering information for the prior calendar year.
The next RxDC report is due by Saturday, June 1, 2024, covering data for 2023.
Employers should confirm they are taking steps to comply with this reporting
deadline, such as providing information to third-party vendors on a timely basis.
Outdoor Exercise for Beginners
Regular exercise can boost your mood and reduce your risk of chronic disease. As the weather starts to warm up, it’s the perfect time to take your exercise regimen out of the gym and soak up some vitamin D. Working out in green spaces may not only make your workout more enjoyable but also help you relax and feel more socially connected.
HR Compliance Bulletin: DOL Issues Guidance on AI and FMLA Administration
The Wage and Hour Division (WHD) of the U.S. Department of Labor recently published a Field Assistance Bulletin (FAB) warning that the use of artificial intelligence (AI) and other automated systems could cause employers to violate laws WHD enforces, including the federal Family and
Medical Leave Act (FMLA).
Click here to view and download the latest HR Compliance Overview
In the Loop (May)
CDC Drops 5-day Isolation Guidance for COVID-19
For the first time since 2021, the agency loosened its COVID-19 isolation guidance
to better reflect the virus’s evolving risk as hospitalizations and deaths from COVID-19 dropped.
Individuals who test positive for COVID-19 no longer need to stay home from work and school for five
days. Isolation is no longer necessary if the individual has been fever-free for at least 24 hours without the aid of medication
Legal Update: IRS Announces Excepted Benefit HRA Limit for 2025
The IRS has released the inflation-adjusted limit for excepted benefit health reimbursement arrangements (EBHRAs) for plan years beginning on or after Jan.1, 2025. Effective for 2025 plan years, the maximum annual employer contribution for an EBHRA will increase to $2,150 (up from $2,100 for plan years beginning in 2024).
2025 HSA and HDHP Limits
Each year, the IRS announces inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs).
The following chart shows the HSA and HDHP limits for 2025 as compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.
Legal Update: DOJ Releases Proposed Rule to Ease Federal Restrictions on Marijuana
On May 16, 2024, the U.S. Department of Justice (DOJ) announced a proposed rule that would reschedule marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA). This rescheduling would ease federal restrictions on marijuana and limit punishment for those in possession of marijuana.
HR Compliance Bulletin: Overview of the EEOC’s Workplace Guidance to Prevent Harassment
On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) published its final guidance on harassment in the workplace, which went into effect immediately upon issuance. The guidance explains how the EEOC may enforce equal employment opportunity (EEO) laws against an employer when workplace harassment is alleged or suspected.
Click here to view and download the latest HR Compliance Overview
ACA Compliance Overview – HHS’ FAQs on Section 1557 Nondiscrimination Final Rule
Section 1557 of the Affordable Care Act (ACA) prohibits discrimination based on race, color, national origin, sex, age or disability in certain health programs and activities. Section 1557 has been in effect since its enactment in 2010, with the U.S. Department of Health and Human Services’ (HHS) Office of Civil Rights (OCR) enforcing the provision.
This Compliance Overview provides HHS’ Frequently Asked Questions (FAQs) on the final rule, which becomes effective July 5, 2024.
Click here to learn more and download the latest ACA Compliance Bulletin.
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.
