The latest news, official guidance, analysis, jobs, and more.

Health & Welfare Plans Newsletter

May 9, 2024

[Official Guidance]

Text of IRS Rev Proc 2024-25: 2025 Inflation-Adjusted Amounts for HSAs, HDHPs and Excepted Benefit HRAs (PDF)

"For calendar year 2025, the annual limitation on deductions under Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $4,300 ... [and] for an individual with family coverage under a high deductible health plan is $8,550. ... For calendar year 2025, a 'high deductible health plan' is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for family coverage. .... For plan years beginning in 2025, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA under Section 54.9831-1(c)(3)(viii) is $2,150. "   MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Health FSA for Employees on Leave

"FMLA rules addressing the health FSA permit employees to [1] continue coverage through pre-pay, pay-as-you-go, or catch-up contributions, or [2] revoke coverage for the period of leave and return at a full or reduced election to address the missed contributions during leave."   MORE >>

Newfront

[Guidance Overview]

The 2024 HIPAA Privacy Reproductive Health Care Regs: Takeaways for Group Health Plans

"The Reproductive Health Care Rules limit when a group health plan can disclose reproductive health care protected health information (PHI) for non-health care purposes.... A group health plan must receive an attestation for certain uses or disclosures of PHI that potentially relate to reproductive health care."   MORE >>

Snell & Wilmer

[Guidance Overview]

HHS Finalizes Section 1557 Nondiscrimination Protections

"Although the final regulations do not apply to most group health plans, they apply to most carriers and TPAs. As a result, Section 1557 will now apply at least indirectly to most group health plans."   MORE >>

McDermott Will & Emery

[Guidance Overview]

Takeaways from Section 1557 Nondiscrimination Protections

"[T]he rule  ... [1] Requires providers, insurers, grantees and others to inform individuals of the availability of language assistance services and accessibility services at no cost ... [2] Codifies that Section 1557's prohibition against discrimination based on sex includes pregnancy, sexual orientation, gender identity and sex characteristics; [3] Reiterates that nondiscrimination in health programs and activities applies to the use of artificial intelligence (AI), clinical algorithms, predictive analytics and other tools ... [and] [4] Clarifies the application of Section 1557 nondiscrimination requirements to health insurance plans[.]"   MORE >>

McDermott Will & Emery

[Guidance Overview]

The Intersection of Artificial Intelligence and Utilization Review

"[California SB 1120] would require algorithms, AI and other software tools used for utilization review to comply with specified requirements.... SB 1120 largely aligns with requirements applicable to Medicare Advantage plans ... Georgia's House Bill 887 would prohibit payors from making coverage determinations solely based on results from the use or application of AI tools.... New York, Oklahoma and Pennsylvania have bills ... requiring payors to disclose to providers and enrollees if they use or do not use AI in connection with utilization review."   MORE >>

Sheppard Mullin

[Guidance Overview]

New York Sunsets COVID-19 Paid Emergency Leave

"After July 31, 2025, employees who need time off to manage care or isolate for COVID-19 will need to use existing paid leave regimes, including New York State's Paid Sick Leave and New York City's Earned Sick and Safe Time."   MORE >>

Nixon Peabody LLP

Fourth Circuit: Exclusion of Gender Affirming Care Violates ACA Section 1557

"[T]he Fourth Circuit has affirmed trial court rulings that the exclusion of coverage for gender affirming care by state health plans in West Virginia and North Carolina violated the nondiscrimination protections of [ACA] Section 1557. Current and former state employees (and a Medicaid program participant) sued because the states' health plans and programs denied coverage for medically necessary gender affirming care for themselves or their dependents." [ Kadel v. Folwell , No. 22-1721 (4th Cir. Apr. 29, 2024)]   MORE >>

Thomson Reuters / EBIA

The CFO Perspective on Health: Cost of Health Benefits Is a Significant Concern (PDF)

18 pages. "Over two-thirds of CFOs view health benefit cost as a significant or very significant concern compared to other operating expenses.... Over a third of CFOs are not confident that long-term health benefit cost management strategies that require investment are saving money -- and 19% don't have enough information to say.... One third of respondents with fully insured plans are at least considering converting to a different funding mechanism."   MORE >>

Mercer

Paid Sick Leave Sticks After Many Pandemic Protections Vanish

"Before the pandemic, 10 states and the District of Columbia had laws requiring employers to provide paid sick leave. Since then, [5 more states] have passed laws offering some kind of paid time off for illness.... In [3 more states], advocates are pushing to put the issue on the ballot this fall.... According to a report by the National Bureau of Economic Research, once these mandates go into effect, employees take, on average, two more sick days a year than before a law took effect."   MORE >>

KFF Health News

Benefits in General

[Guidance Overview]

FTC Publishes Final Rule Banning Non-Competes

"Though the FTC argues [that] the agency charged with regulating 'competition' can regulate 'non-competition' agreements, the legal challenge will be more complicated. The Commission will be pressed to defend the lack of specific delegation of authority under Section 5 of the FTC Act by Congress to regulate contracts historically governed by state law. Indeed, two of the commissioners voted against adopting the final rule for this reason."   MORE >>

Davis Wright Tremaine LLP

Employee Benefits Jobs

Press Releases

Webcasts and Conferences(Health & Welfare Plans)

GLP-1 Class Drugs: To Cover or Not

May 9, 2024 WEBINAR

OneDigital

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BenefitsLink ® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.

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