The Washington Report

October 23, 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

 

IRS Releases Notices on Expenses Treated as Amounts Paid for Medical Care and Preventive Care for Purposes of Qualifying as an HDHP Under Section 223
On October 17, 2024, the Internal Revenue Service (IRS) released Notice 2024-71 (Expenses Treated as Amounts Paid for Medical Care) and Notice 2024-75 (Preventive Care for Purposes of Qualifying as a High Deductible Health Plan (HDHP) under Section 223).

Notice 2024-71 provides a safe harbor under Section 213 of the Internal Revenue Code (Code) for amounts paid for condoms. 

Notice 2024-75 expands the list of preventive care benefits permitted to be provided by an HDHP under Section 223(c)(2)(C) of the Code without a deductible, or with a deductible below the applicable minimum deductible for the HDHP, to include over-the-counter oral contraceptives (including emergency contraceptives) and male condoms. The Notice also clarifies that: 1) all types of breast cancer screening for individuals who have not been diagnosed with breast cancer are treated as preventive care under Section 223(c)(2)(C); 2) continuous glucose monitors for individuals diagnosed with diabetes are generally treated as preventive care under Section 223(c)(2)(C); and 3) the new safe harbor for absence of a deductible for certain insulin products in Section 223(c)(2)(G) applies without regard to whether the insulin product is prescribed to treat an individual diagnosed with diabetes or prescribed for the purpose of preventing the exacerbation of diabetes or the development of a secondary condition. 

IRS Notice 2024-71 is available here.

IRS Notice 2024-75 is available here.

Retirement

 

PBGC Announces 2025 Premium Rates for Single-Employer and Multiemployer Plans
On October 11, 2024, the Pension Benefit Guaranty Corporation (PBGC) announced the 2025 flat-rate premiums for single-employer and multiemployer plans. For the 2025 plan year, the per-participant flat-rate premium for single-employer plans is $106.00 (up from $101.00 in 2024) and $39.00 for multiemployer plans (up from $37.00 in 2024). For plan years beginning in 2025, the variable-rate premium (VRP) for single-employer plans is $52.00 per $1,000 of unfunded vested benefits, which has remained unchanged from 2024. For 2025, the VRP is capped at $717 times the number of participants (up from a 2024 cap of $686). For additional information on VRPs, as well as other current and historical data, please refer to the Premium Rate website.

The 2025 PBGC premium rates are available here.