Compliance Tracker – October
Upcoming Compliance Dates:
A | Provide ICHRA Notice for 2025 Plan Year (Calendar-year Plans Only) – Oct. 3, 2024
Employers that offer individual coverage health reimbursement arrangements (ICHRAs) that operate on a calendar-year basis must provide notice to eligible employees by Oct. 3, 2024.
B | Provide QSEHRA Notice for 2025 Plan Year (Calendar-year Plans Only) – Oct. 3, 2024
Employers that offer qualified small employer health reimbursement arrangements (QSEHRAs) that operate on a calendar-year basis must provide notice to eligible employees by Oct. 3, 2024.
C | Provide Medicare Part D Notices – Oct. 14, 2024
Employers must notify Medicare-eligible individuals by Oct. 14, 2024, whether the health plan’s prescription drug coverage is creditable or noncreditable.
D | File Form 5500 (Extended Deadline for Calendar-year Only Plans) – Oct. 15, 2024
Employers with calendar-year employee benefit plans that applied for the automatic 2.5-month filing
extension must file Form 5500 for the 2023 plan year by Oct. 15, 2024.
News Brief: Major Employers Signal Return to Office
The JLL’s Future of Work survey revealed that the number of organizations expecting employees to work on-site full timesurged to 44% in 2024 compared to 34% in 2022. According to the survey respondents, 95% of employers now require employees to be on-site at least one day per week.
More employers worldwide are becoming “office advocates,” scaling back flexible work policies and mandating five-day in-office work weeks. Meanwhile, the percentage of “hybrid adopters,” or those who allow employees to work from home at least once a week, dropped from 77% in 2022 to 56% in 2024.
“There is now a broadly even split between those organizations which favor some form of hybrid work styles and those expecting to see employees back in the office full time.”
-JLL’s 2024 The Future of Work report
Legal Update: New Notice Requirement for the Fixed Indemnity Coverage for 2025
Employers offering fixed indemnity coverage must comply with a new notice requirement for plan years beginning on or after Jan. 1, 2025. The new notice is designed to explain the limitations of fixed indemnity coverage and help prevent employees from mistakenly selecting such coverage as an alternative to or replacement for traditional health coverage.
Employers with fixed indemnity policies should ensure that enrollment,application and marketing materials for the 2025 plan year include the required notice.
Compliance Overview – Employee Assistance Programs
Employee assistance programs (EAPs) are work-based intervention programs that connect employees with resources to identify and address personal problems. EAPs typically include a variety of services to help employees remain healthy and productive, such as mental health counseling, substance use disorder counseling, financial advising, legal services, and resources to address family issues and other personal challenges. EAPs are usually offered at no cost to employees by third-party vendors. They can also be provided as a component of the employer’s group medical plan.
This Compliance Overview summarizes key requirements for EAPs. Employers sponsoring EAPs should ensure they are familiar with these compliance requirements.
News Brief: Mercer Report Projects 5.8% Health Benefits Cost Increase in 2025
U.S. employers estimate that health benefit costs will increase by 5.8% in 2025, according to Mercer’s
2024 National Survey of Employer-sponsored Health Plans. This would mark the third consecutive year that the total cost per employee rose more than 5%. The report attributed the higher costs to the widening gap between the supply of health care workers and the demand for health care services, along with costly behavioral health care and glucagon-like peptide-1 (GLP-1) medications.
The report included an analysis of responses from more than 1,800 employers nationwide. Employers estimated that their costs would rise by an average of 7% if they took no action to lower costs. Not surprisingly, smaller employers (organizations with 50-499 employees) estimate being impacted the most, reporting that costs would rise by an average of 9% if they took no action to lower costs. Mercer’s figure is in the 7%-9% range, lining up with other industry reports, such as Aon and the International Foundation of Employee Benefit Plans.
“While we’ve seen significant increases in utilization in a fewareas, such as for behavioral health care and GLP-1 medications,overall utilization has had a relatively modest impact on trend this year. The biggest driver of higher costs is price dynamics,some of which are macro in nature.”
-Sunit Patel, Mercer’s U.S. chief actuary for health and benefits
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.
