The Washington Report

January 15, 2025

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Health

 

Departments Withdraw Proposed Rules: Coverage of Certain Preventive Services Under ACA
On December 30, 2024, the Departments of Health and Human Services, the Treasury, and Labor (Departments) issued a document withdrawing proposed rules that originally appeared in the Federal Register on February 2, 2023, regarding coverage of certain preventive services under the Affordable Care Act (ACA). In February 2023, the Departments released proposed rules that sought to resolve long-running litigation with regard to religious objections to providing contraceptive coverage, by respecting the objecting entities' religious objections while also ensuring that women enrolled in plans or coverage sponsored, arranged, or offered by objecting entities could independently obtain contraceptive services at no cost. The proposed rules would have rescinded the regulation providing for an exemption based on non-religious moral objections. The proposed rules would also have established a new individual contraceptive arrangement that individuals in plans or coverage subject to a religious exemption could use to obtain contraceptive services at no cost directly from a provider or facility that furnishes contraceptive services, without any involvement on the part of an objecting entity. The Departments received comments on specific proposals in the proposed rules, as well as general comments on the proposals.

With the latest announcement, the Departments have determined it “appropriate to withdraw the proposed rules…and in light of the volume and breadth of scope of the comments received, the Departments want to further consider the proposals made in the proposed rules.” The Departments also note that they could propose new rules in the future.

The document withdrawing the proposed rules is available here.

HHS Issues Proposed Rule Strengthening Cybersecurity Under HIPAA
On December 27, 2024, the Department of Health and Human Services (HHS), through its Office for Civil Rights (OCR), issued a proposed rule to improve cybersecurity and better protect the U.S health care system from a growing number of cyberattacks. The proposed rule would “modify the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Security Rule to require health plans, health care clearinghouses (an organization that enables the exchange of health care data between a provider and a payer (insurance company)), and most health care providers, and their business associates, to strengthen cybersecurity protections for individuals’ protected health information.” Among other provisions, the proposed rule would modify the HIPAA Security Rule to require health plans, health care clearinghouses, and most health care providers, and their business associates to better protect individuals’ electronic protected health information against both external and internal threats. It would clarify and provide more specific instruction about what covered entities and their business associates must do to protect the security of electronic protected health information. The proposed rule also would require that policies and procedures be in writing, reviewed, tested, and updated on a regular basis. Comments on the proposed rule must be received by March 7, 2025. 

The news release is available here.

The proposed rule is available here.

A Fact Sheet is available here.

Retirement

 

PBGC Issues Guidance on Premium Filing Due Dates for 2025
On January 6, 2025, the Pension Benefit Guaranty Corporation (PBGC) issued Technical Update 25-1 providing guidance on the effect of Section 502 of the Bipartisan Budget Act of 2015 on premium due dates for plan years beginning in 2025. Because of that provision, premiums for 2025 are generally due a month earlier than usual. 

PBGC Technical Update 25-1 is available here.

IRS Releases Covered Compensation Tables
On December 20, 2024, the Internal Revenue Service (IRS) released Revenue Ruling 2025-2, which provides tables of covered compensation under Section 401(l)(5)(E) of the Internal Revenue Code and Treasury regulations for the 2025 plan year. 

IRS Revenue Ruling 2025-2 is available here.

Aon Publications

 

Two New Laws Provide ACA Reporting and Disclosure Relief
On December 23, 2024, President Biden signed two bills into law (the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act) that provide employers some relief from certain Affordable Care Act (ACA) reporting and disclosure obligations and ACA-related penalties, including a new alternative option to furnish Form 1095s. The new laws and the associated relief apply starting in 2025 for reporting for health care coverage in the 2024 calendar year. 

The Aon bulletin is available here.

Now Available: Aon 2025 Compliance Calendar
Aon is pleased to present its 2025 Compliance Calendar to assist plan sponsors and fiduciaries with identifying significant compensation and benefit due dates for their retirement and health and welfare plans. This Calendar is based on a January 1 through December 31 calendar plan year and includes due dates for notice distributions, plan disclosures, and various plan-related federal regulatory filings, along with certain plan/benefit-related items that are date-specific. While some compliance dates may be subject to change due to the ongoing release of additional or clarifying legislative or regulatory guidance by the Internal Revenue Service (IRS), Department of Labor (DOL), or other federal regulatory agencies throughout the year, this Compliance Calendar should serve as a very useful tool to ensure timely compliance during 2025. 

Some topics addressed in the 2025 Compliance Calendar include:

• Timing of participant communications and notices (e.g., summaries of material modifications, pension benefit statements, and summaries of benefits and coverage);
• Changes to health plan reporting obligations;
• Plan contribution due dates; and
• Filing dates for certain IRS and DOL forms (e.g., Forms 5500, W-2, 1094-B, 1095-B, and 1099-R).

While the Calendar does address the prior SECURE 2.0 change to increase the age for required minimum distributions from age 72 to age 73 and subsequently to age 75 in 2033, we did not otherwise modify other compliance dates for SECURE 2.0 going forward. 

The 2025 Aon Compliance Calendar: Significant Retirement and Health & Welfare Plan Compliance Dates is available here.