A provision in the spending bill package that was passed in Congress on December 23, 2022, extended the transition relief for high-deductible health plans to cover telehealth services without having to satisfy the plan’s deductible for an additional two years. This is a welcome relief for those with health savings accounts. Read more here.

The Departments of Labor, Health and Human Services, and Treasury collectively released FAQ 56, which provides a one-month non-enforcement period with respect to the prescription drug (Rx) reporting requirement for the 2020 and 2021 reporting years. A plan or health care issuer will not be considered out of compliance as long as a good faith submission is made on or before January 31, 2023. In addition to the extension, FAQ 56 provides some flexibility and clarification regarding reporting 2020 and 2021 data through the HIOS system. Read more here.

To assist employers with their compliance obligations for the new year, we have prepared a calendar of requirements for the year. Read more here.

The IRS has released its 2023 plan year limits for health care flexible spending account (FSA) contribution and related carryover amounts, as well as the limits for several other health and welfare benefits. Read more here.

The IRS has announced its cost-of-living adjustments for 2023 that affect the amounts employees can contribute to 401(k) and other retirement plans, as well as the increased compensation limits for determining who is a highly compensated employee. Read more here

The IRS has released the final 2022 forms for employer reporting under internal revenue code (code) sections 6055 and 6056. Employers who have not already done so should make plans to contract with a vendor to assist in upcoming reporting obligations. Read more here. 

For plan sponsors of self-insured medical plans, the patient-centered outcomes research institute (PCORI) fee amount for plan years ending on or after October 1, 2022, and before October 1, 2023, is $3.00 multiplied by the average number of lives covered under the plan. For plan years ending in 2022, the PCORI fee is due by July 31, 2023. Read more here. 

The IRS has clarified that Notice 2022-41, which expanded the IRS’ permitted list of mid-year election changes under Code Section 125 applies to both calendar year and non-calendar year group health plans (other than health care flexible spending accounts). Read more here.

The Treasury Department and the IRS have released their list of over 200 guidance projects reflecting their priorities for allocating IRS and Treasury Department resources during the current plan year ending June 30, 2023. Read more here.

A 2021 Colorado law permits individuals seeking to purchase health coverage on the ACA marketplace to choose public health benefit plan options, known as “Colorado Option” plans, beginning January 1, 2023. Read more here.

The Biden administration has said it can no longer afford to purchase additional doses of the COVID-19 vaccine unless Congress provides it with more funds. A Kaiser Family Foundation study indicates that this will significantly increase the price of the vaccine in the commercial market. Read more here.

The Department of Health and Human Services (HHS) has issued a proposed rule that intends to better align existing protections against unauthorized disclosures of substance use disorder patient records. HHS is seeking to address concerns about discrimination or prosecution resulting from individuals entering treatment for substance abuse, including in the workplace. Read more here.

In its October 2022 Cybersecurity Newsletter, the Office of Civil Rights (OCR) provides guidance to address the increasingly common incidents of cyberattacks targeting the healthcare sector, resulting in breaches of electronically protected health information (ePHI). Most of these breaches are the result of hacking incidents, which are currently viewed as the greatest threat to the privacy and security of PHI. The OCR also recently released guidance on the use of online tracking technology tools by HIPAA-regulated entities. Read more here.

Our “Question of the Month” concerns whether a summary plan description (SPD) posted to a company’s intranet satisfies ERISA’s requirement that SPDs be delivered to participants. Read more here.