The Washington Report
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November 15, 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
CMS Releases Proposed Rule on Medicare Program; Contract Year 2025 Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, Medicare Cost Plan Program, and Programs of All-Inclusive Care for the Elderly; Health Information Technology Standards and Implementation
On November 6, 2023, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that would revise the Medicare Advantage (Part C), Medicare Prescription Drug Benefit (Part D), Medicare cost plan, and Programs of All-Inclusive Care for the Elderly regulations to implement changes related to Star Ratings, marketing and communications, agent/broker compensation, health equity, dual eligible special needs plans, utilization management, network adequacy, and other programmatic areas. The proposed rule also includes proposals to codify existing sub-regulatory guidance in the Part C and Part D programs. Comments on the proposed rule are due by January 5, 2024. Please refer to the resources below for more information.
The news release is available here.
A Fact Sheet is available here.
The proposed rule is available here.
Retirement
PBGC Updates ERISA Section 4044 Mortality Table for 2024 Valuations
On November 9, 2023, the Pension Benefit Guaranty Corporation (PBGC) updated the ERISA Section 4044 Mortality Tables for 2024 valuations. Under the current regulation, these tables are used to determine liabilities when a single-employer plan terminates in an involuntary or distress termination. They are also used when a multiemployer plan incurs a mass withdrawal. Also, a unisex version of the healthy mortality tables is used in specified situations to determine the benefit transfer amount under the Missing Participants Program. HTML and Excel versions of these mortality tables are available on the PBGC’s ERISA Section 4044/4050 Mortality Table webpage.
The ERISA Section 4044/4050 Mortality Table webpage is available here.
Other HR/Employment
IRS Provides Tax Inflation Adjustments for 2024
On November 9, 2023, the Internal Revenue Service (IRS) announced in Revenue Procedure 2023-34 the tax year 2024 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2023-34 provides details about all these annual adjustments. Items that may be of interest to employers are provided below. Please refer to the actual Revenue Procedure for all tax information.
Qualified Transportation Fringe Benefit: For tax year 2024, the monthly limitation for the qualified transportation fringe benefit is $315, as is the monthly limitation for qualified parking. This amount increased $15 from the tax year 2023 benefit of $300.
Health Flexible Spending Arrangements: For the taxable years beginning in 2024, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements is $3,200, an increase of $150 from the 2023 tax benefit of $3,050. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $640, an increase of $30 from taxable years beginning in 2023.
Medical Savings Accounts: For tax year 2024, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,800, up $150 from tax year 2023; but not more than $4,150, an increase of $200 from tax year 2023. For self-only coverage, the maximum out-of-pocket expense amount is $5,550 up $250 from 2023. For tax year 2024, participants with family coverage, the floor for the annual deductible is $5,550, up from $5,300 in 2023; however, the deductible cannot be more than $8,350, up $450 from the limit for tax year 2023. For family coverage, the out-of-pocket expense limit is $10,200 for tax year 2024, an increase of $550 from tax year 2023.
Qualified Adoption Expenses: The maximum credit allowed for adoptions is the amount of qualified adoption expenses up to $16,810 for taxable years beginning in 2024, up from $15,950 for 2023.
IRS Information Release IR-2023-208 is available here.
IRS Revenue Procedure 2023-34 is available here.