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.
Legal Update: Final Rule Makes Extensive Changes to Mental Health Parity Requirements
On Sept. 9, 2024, the Departments of Labor, Health and Human Services, and the Treasury (Departments) released a final rule to strengthen the requirements of the Mental Health Parity and Addiction Equity Act (MHPAEA). According to the Departments, the final rule is designed to achieve MHPAEA’s purpose of ensuring individuals with private health coverage do not face greater restrictions to obtaining mental health and substance use disorder (MH/SUD) benefits than they would face for medical/surgical (M/S) benefits.
Significantly, the final rule adds protections against more restrictive non quantitative treatment limitations (NQTLs). For example, the final rule requires group health plans and health insurance issuers to collect and evaluate data related to the NQTLs they place on MH/SUD care and make changes if the data shows they are providing insufficient access.
Compliance Overview – Medicare Part D: Creditable Coverage Disclosure Notices Due Before Oct. 15
Employers with group health plans that provide prescription drug coverage must notify Medicare Part D eligible individuals before Oct. 15 of each year about whether the drug coverage is at least as good as the Medicare Part D coverage (in other words, whether their prescription drug coverage is “creditable”).
This notice is important because Medicare beneficiaries who are not covered by creditable prescription drug coverage and who choose not to enroll in Medicare Part D before the end of their initial enrollment period will likely pay higher premiums if they enroll in Medicare Part D at a later date. Thus, although there are no specific penalties associated with this notice requirement, failing to provide the notice may trigger adverse employee relations issues.
Legal Update: Pay-or-Play Affordability Percentage Will Increase for 2025
On Sept. 6, 2024, the IRS released Revenue Procedure 2024-35 to index the contribution percentage in 2025 for determining the affordability of an employer’s plan under the Affordable Care Act (ACA). 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.
News Brief: Report: Employee Happiness Declining in 2024
Employee satisfaction has plummeted to its lowest point in four years, according to BambooHR’s most recent Employee Happiness Index. The survey recorded a score of 35 out of 100 in May 2024, consistently trending down from 44 in May 2020,signaling a “troubling trend” in workplace morale. More recently, employee happiness dropped 5% from June 2023 to June 2024.
The second-quarter (Q2) decline dampened the modest increase seen in the first quarter and marked a return to the steady downward trend of employee dissatisfaction since 2020, dubbed the “Great Gloom.” This trend is characterized by rising disengagement, burnout and dissatisfaction at work. While employees are less inclined to quit their jobs than in previous years,employers are struggling to engage their workforce effectively.
“This persistent decline throughout Q2 2024, with scores consistently below 36, is alarming and signals a critical need for organizational introspection and action. As leaders, we must enhance our engagement efforts, support our teams in their workplace transitions and foster open lines of communication.”
-Anita Grantham, head of HR, BambooHR
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.
