On May 16, 2023, the IRS released Revenue Procedure 2023-23 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2024. The IRS is required to publish these limits by June 1 of each year.
These limits include:
When a plan participant or beneficiary has Medicare and other health insurance, such as employer group health plan insurance, retiree coverage, or Medicaid, there can often be confusion as to which insurance pays first on claims.
Coordination of benefits (COB) rules, which are specified in plan documents or insurance policies, decide which insurance pays first. One plan is considered the primary payer that covers most expenses, while the secondary plan covers any remaining allowable expenses not covered by the primary plan.
The COB allows health plans to provide health or prescription drug coverage to individuals receiving Medicare to determine their payment responsibilities. This helps ensure that the total amount paid by all insurance plans does not exceed the total costs of the health care expenses for Medicare-covered services and items.
Today's blog post provides a general overview of COB rules under Medicare.
Employee handbooks are important tools for establishing employee expectations, addressing workplace issues, and defending against potential lawsuits.
Failing to update employee handbooks regularly can make employers vulnerable to legal risks and liabilities, resulting in costly fines, penalties, and attorneys’ fees.
Employment laws are often complicated, and employers need to be aware of any new regulatory developments that may impact their organizations and workforce. Each new calendar year provides employers with an excellent opportunity to review and update the policies in their employee handbooks.
Here are five employment policies employers should consider reviewing in 2023.
A growing number of employers are currently experiencing a rise in catastrophic health claims, largely due to medical and pharmaceutical advances (e.g., specialty drugs and cell and gene therapies).
In the past, employers have expanded cost-sharing methods to reign in rising health expenses, such as offering high deductible health plans, but today’s employers are hesitant to shift costs onto employees amid the tight labor market.
As a result, many employers with self-funded health plans are actively looking for impactful mitigation strategies. One of the most common strategies is purchasing aggregate stop-loss insurance to help cover catastrophic health claims.
As businesses expand beyond their borders, it can be a significant management challenge to structure an employee benefits program.
There’s the risk of failing to meet regulatory requirements or offering packages that are competitive in the United States, but aren’t appealing elsewhere, or are unnecessarily expensive.
In addition, acquired rights rules in most countries outside the U.S. make it difficult to rescind benefits after they’ve been offered, making it essential to get it right the first time.
What’s more, multinational employers need to devote sufficient management time and due diligence efforts to ensure that benefits are appropriately designed and cost-effectively delivered.
As companies continue to rebound from the pandemic, ongoing challenges — including staffing shortages, unpredictable demand, and rising supply costs — have businesses on the hunt for any advantage. Evaluating funding strategies for medical benefits programs may be a good place to start.
With employers offering richer benefits to employees as a recruitment and retention incentive, organizations are taking a hard look at the options available. Captive insurance can be an ideal solution for medical benefits, offering mid-sized companies across most industries the opportunity to control medical and pharmaceutical costs and design a more customized health plan.
Compared to companies offering traditional, fully insured plans, companies retain more control and transparency through participation in a medical captive. Employers may also save as much as 30% to 50% in total prescription costs through an actively managed pharmacy program. Overall healthcare expenses may also trend lower over time, creating a cost advantage over competitors and a benefit to the bottom line. However, participating in a benefits captive involves more work and oversight in exchange for plan flexibility and the chance to create healthcare savings.
Just as HR professionals quickly adapted to changes at the height of the pandemic, they must now adapt and respond to today’s evolving expectations of organizations and employees alike.
As such, savvy HR leaders and professionals will approach 2023 with human-centric strategies that holistically support and benefit workers. Organizations will benefit from putting people first and listening to what their people need.
Today we'll highlight six HR trends to follow in 2023.
Deciding how many HR professionals an organization needs to operate effectively is a hotly debated topic. Some organizations rely on metrics to guide them in making this decision.
One of the most common metrics organizations use when deciding whether to hire HR professionals is the HR-to-employee ratio. When properly analyzed, this ratio can aid employers in meeting their HR needs and benchmarking their organizations against others.
It can help employers determine not only how to fill their HR staffing needs, but also analyze how well their HR professionals are delivering on organizational goals.
Today we'll explain the HR-to-employee ratio, how organizations can use it, and what employers should consider when deciding whether to hire HR professionals.
Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare now to comply with reporting deadlines
in early 2023.
For the 2022 calendar year, covered employers must: a) furnish statements to individuals by March 2, 2023; and b) file returns with the IRS by Feb. 28, 2023 (or March 31, 2023, if filing electronically).
Penalties may apply if employers are subject to ACA reporting and fail to file returns and furnish statements by the applicable deadlines.
Note that while the annual deadline for furnishing statements to individuals is Jan. 31, the IRS finalized a 30-day automatic extension to the annual furnishing deadline. Thus, the deadline for furnishing statements to individuals for the 2022 calendar year is extended from Jan. 31, 2023, to March 2, 2023.
In addition, the IRS has provided an alternative to automatically furnishing statements to covered individuals in certain situations.
Emboldened by a strong labor market, employees find themselves in the driver's seat these days when it comes to demanding pay transparency. And with a growing list of jurisdictions now requiring employers to share compensation information, this trend shows no signs of slowing down.
In this post we will address the rules surrounding pay transparency across the country and workers’ growing demand for it. We will also discuss employer pros and cons, as well as strategies to implement pay transparency practices in an organization.
Pay transparency is when an employer openly communicates pay-related information through established practices to current or prospective employees. Employers can provide this information through various channels, such as online job sites, job postings, or during an interview.
