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.
Legal Update: EEOC Releases 2024 Litigation Data, Showing a Decrease in Lawsuits
On Oct. 9, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) released litigation data for fiscal year (FY) 2024, which covers Oct. 1, 2023,through Sept. 30, 2024. The data shows an overall decrease in litigation;however, of the lawsuits filed, the EEOC focused on emerging issues, such as pregnancy discrimination, and advancing the rights of underserved and vulnerable workers
Compliance Bulletin – Educational Assistance Programs Can Help Pay Student Loans Through 2025
The IRS is reminding employers who offer educational assistance programs that they can also use them to help pay for their employees’ student loans. Though educational assistance programs have been available for many years, the option to use them to pay for student loans has only been available for payments made after March 27, 2020. Under current law, this student loan provision is set to expire Dec. 31, 2025.
In most cases, educational benefits are excluded from federal income tax withholding, Social Security tax, Medicare tax and federal employment (or FUTA) tax. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year, and assistance provided above this level is typically taxable as wages.
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.
