The Washington Report
May 15, 2024
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
HHS Releases FAQ on Risk Adjustment Telehealth and Audio-Only Services
On May 13, 2024, the Department of Health and Human Services (HHS) released the
following frequently asked question (FAQ) on risk adjustment telehealth and audio-only
services:
“Question: Can HHS clarify what the telehealth policy is for the HHS-operated risk
adjustment program for the 2024 benefit year and beyond?”
“Response: HHS is extending policies related to the treatment of telehealth and
audio-only services that were put in place in response to the increased need to expand
the use of telehealth services during the COVID-19 public health emergency for the
2020 through 2023 benefit years to the 2024 benefit year and beyond. HHS is
extending these policies for purposes of the HHS-operated risk adjustment program
under Section 1343 of the Affordable Care Act (ACA) due to changes in patterns of
care and higher levels of use of telehealth and audio-only services that can be
expected to continue into future benefit years.”
Please refer to the FAQ for additional information.
The FAQ is available here.
IRS Publishes 2025 Inflation-Adjusted Amounts for HSAs and HRAs
On May 9, 2024, the Internal Revenue Service (IRS) released Revenue Procedure
2024-25, which provides the 2025 inflation-adjusted amounts for health savings
accounts (HSAs) and the maximum amount that may be made newly available for
excepted benefit health reimbursement arrangements (HRAs).
Annual Contribution Limitation: For calendar year 2025, the annual limitation on
deductions for an individual with self-only coverage under a high-deductible health plan
is $4,300. For calendar year 2025, the annual limitation on deductions for an individual
with family coverage under a high-deductible health plan is $8,550.
High-Deductible Health Plan: For calendar year 2025, a high-deductible health plan
is defined 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, copayments, and other amounts, but not premiums) do
not exceed $8,300 for self-only coverage or $16,600 for family coverage.
HRA Inflation-Adjusted Item: For plan years beginning in 2025, the maximum
amount that may be made newly available for the plan year for an excepted benefit
HRA is $2,150. Please refer to the IRS guidance for further explanation of this
calculation.
Revenue Procedure 2024-25 is effective for HSAs for calendar year 2025 and for
excepted benefit HRAs for plan years beginning in 2025.
For additional information, see the Aon bulletin titled IRS Issues 2025 HSA Limits in the
Publications section of the newsletter.
IRS Revenue Procedure 2024-25 is available here.
HHS, OCR Publish ACA Final Rule on Nondiscrimination in Health Programs and Activities
On May 6, 2024, HHS and the Office for Civil Rights (OCR) published a final rule regarding Section 1557 of the ACA (Section 1557). Section 1557 prohibits discrimination on the basis of race, color, national origin, sex, age, or disability in certain health programs and activities. HHS is also revising its interpretation regarding whether Medicare Part B constitutes federal financial assistance for purposes of civil rights enforcement. Additionally, HHS is revising provisions prohibiting discrimination on the basis of sex in regulations issued by the Centers for Medicare & Medicaid Services governing Medicaid and the Children’s Health Insurance Program; Programs of All-Inclusive Care for the Elderly; health insurance issuers and their officials, employees, agents, and representatives; states and the Exchanges carrying out Exchange requirements; agents, brokers, or web-brokers that assist with or facilitate enrollment of qualified individuals, qualified employers, or qualified employees; issuers providing essential health benefits; and qualified health plan issuers. The final rule becomes effective July 5, 2024.
The press release is available here.
The final rule is available here.
The Section 1557 of the Patient Protection and Affordable Care Act resource web page, which includes FAQs, a Fact Sheet, etc., is available here.
Aon Publications
IRS Issues 2025 HSA Limits
On May 9, 2024, the Internal Revenue Service (IRS) issued Revenue Procedure 2024-25, inflation-adjusted limits for contributions to a health savings account (HSA) for the 2025 calendar year. The IRS also issued updated minimum deductible amounts and maximum out-of-pocket limits. This Aon bulletin contains a chart providing the limits for calendar years 2023 through 2025.
The Aon bulletin is available here.