Health FSA Limit Increases for 2024
The IRS has increased the annual pre-tax contribution limit for the year ahead for out-of-pocket expenses.
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Deadline for Submitting Gag Clause Attestation is 12/31/23
Group health plans and health insurance issuers are required to annually attest that they are complying with the federal prohibition on gag clauses. The first gag clause attestation is due by December. 31, 2023, covering the period beginning December 27, 2020, through the date of attestation. Subsequent attestations, covering the period since the last attestation, are due by December 31 of each following year.
Employers should ensure their plan-related agreements do not contain prohibited gag clauses. Also, employers should reach out to their health plan service providers and determine what action they may need to take to comply with the gag clause attestation requirement.
- If the issuer for a fully insured health plan provides the attestation, an employer does not also need to provide an attestation for the plan.
- Employers with self-insured health plans can enter into written agreements with their third-party administrator (TPA) or other plan service provider to provide the attestation, but the legal responsibility remains with the health plan. While some TPAs are willing to submit attestations on behalf of their self-insured groups, other TPAs have indicated they are unwilling to do so. In this case, employers may need to submit the attestations for their health plans.
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Affordable Care Act: 2024 Compliance Checklist
The Affordable Care Act (ACA) made a number of reforms to group health plan coverage when it was enacted in 2010. Since then, changes have been made to various ACA requirements of which employers should be aware. These changes include annual cost-of-living increases to certain ACA dollar limits, extensions to ACA reporting deadlines, and updates to preventive care coverage guidelines.
Changes to some ACA requirements will take effect in 2024 for employers sponsoring group health plans. Significantly, the affordability percentage under the ACA’s employer mandate rules for applicable large employers (ALEs) will be at its lowest point for plan years beginning in 2024, which may require many ALEs to lower their employee contribution rates.
