The Washington Report
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May 24, 2023
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
IRS Publishes 2024 Inflation-Adjusted Amounts for HSAs and HRAs
On May 16, 2023, the Internal Revenue Service (IRS) released Revenue Procedure 2023-23, which provides the 2024 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 2024, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $4,150. For calendar year 2024, the annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $8,300.
- High-Deductible Health Plan: For calendar year 2024, a high-deductible health plan is defined as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) do not exceed $8,050 for self-only coverage or $16,100 for family coverage.
- HRA Inflation-Adjusted Item: For plan years beginning in 2024, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $2,100. Please refer to the IRS guidance for further explanation of this calculation.
Revenue Procedure 2023-23 is effective for HSAs for calendar year 2024 and for excepted benefit HRAs for plan years beginning in 2024.
For additional information, see the Aon bulletin titled IRS Issues 2024 HSA Limits in the Publications section of the newsletter.
IRS Revenue Procedure 2023-23 is available here.
Other HR/Employment
EEOC Releases Update to COVID-19 Technical Assistance; Addresses End of PHE
On May 15, 2023, the Equal Employment Opportunity Commission (EEOC) issued a number of updates to its COVID-19 technical assistance, What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws, including adding a new question and answer about the end of the federal declaration of the COVID-19 public health emergency (PHE). Key updates include:
- The end of the COVID-19 PHE does not mean employers can automatically terminate reasonable accommodations that were provided due to pandemic-related circumstances. However, employers may evaluate accommodations granted during the PHE, and, in consultation with the employee, assess whether there continues to be a need for reasonable accommodation based on individualized circumstances.
- For employees with Long COVID, the updates include common examples of possible reasonable accommodations, including a quiet workspace, use of noise cancelling devices, and uninterrupted worktime to address brain fog; alternative lighting and reducing glare to address headaches; rest breaks to address joint pain or shortness of breath; a flexible schedule or telework to address fatigue; and removal of “marginal functions” that involve physical exertion to address shortness of breath. Many of these are low or no-cost accommodations.
- For employers, the updates include tips about remaining alert for COVID-related harassment of applicants or employees with a disability-related need to continue wearing a face mask or take other COVID-19 precautions at work.
Please refer to the latest guidance for details.
The news release is available here.
The updated guidance, What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws, is available here.
Aon Publications
IRS Issues 2024 HSA Limits
On May 16, 2023, the Internal Revenue Service (IRS) issued Revenue Procedure 2023-23, inflation-adjusted limits for contributions to a health savings account (HSA) for the 2024 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 2022 through 2024.
The Aon bulletin is available here.
Fifth Circuit Puts USPSTF Preventive Care Ruling on Hold
On May 15, 2023, the Fifth Circuit Court of Appeals temporarily stayed a district court decision that prevented the U.S. Departments of Labor, Treasury, and Health and Human Services from enforcing certain preventive care requirements for group health plans under the Affordable Care Act (ACA). The Fifth Circuit’s decision means that employer group health plans must continue to comply with all of the ACA preventive care requirements until further court action.
This Aon bulletin discusses the following:
- Background and Decision
- Impact on Employers
- Next Steps
The Aon bulletin is available here.
DeSantis Signs Florida Prescription Drug Reform Act
Florida Governor Ron DeSantis signed into law the Prescription Drug Reform Act (the Act) regulating pharmacy benefit managers (PBMs), their contracts with pharmacies, and nearly all sponsors of health plans in Florida.
The Act will affect self-funded ERISA-governed, fully insured, and governmental health plans, as well as state-funded, Medicaid, Medicare Advantage, and Medicare Part D plans. Florida residents and plans with Florida employees, and participants receiving pharmacy benefits within Florida, will also be affected.
This Aon bulletin addresses the Act’s provisions regarding:
- Regulation of PBM contracts with group health plans;
- ERISA preemption and the Act;
- Regulation of PBM contracts with pharmacies;
- Price transparency reporting required for drug manufacturers;
- Florida licensing of PBMs; and
- Enforcement provisions.
The Aon bulletin is available here.