IRS Decreases ACA Penalties in 2025

The Internal Revenue Service (IRS) released Revenue Procedure 2024-14 (PDF) on February 12, 2024. It provides adjustments to applicable dollar amounts used to calculate employer shared responsibility penalties (ESRPs) under the Affordable Care Act (ACA). This is the first time since the establishment of the ACA that the IRS is decreasing applicable penalties. The adjusted penalty amount for failures occurring in the 2025 calendar year will decrease $70 from 2024 to $2,900 per full-time employee (less the 30-employee reduction) for Penalty A, and Penalty B will drop $110 to $4,350 per full-time employee that receives subsidized coverage through an Exchange.

Contractor Classification Under the Fair Labor Standards Act

The U.S. Department of Labor (DOL) issued a final rule that went into effect on March 11, 2024, modifying rules for determining the classification of employee or independent contractor under the Fair Labor Standards Act (FLSA). The updated definition of “employee” may cause more employers to be considered Applicable Large Employers (ALEs), thereby subjecting them to the Affordable Care Act (ACA) and potentially to penalties for not offering minimum essential coverage that is also affordable and meets minimum value standards.

Updated CHIP Notice Available

the Department of Labor (DOL) recently posted an updated version of the Children’s Health Insurance Program (CHIP) notice (PDF) to their website that includes minor changes from past notices.

Arkansas and other states offering premium assistance are required to distribute the CHIP notice to all eligible employees each year prior to the beginning of the plan year. Although the updated notice does not need to be distributed immediately, it should be included the next time an employer distributes required information to employees (for example, with open enrollment materials).

March is National Kidney Month

The National Kidney Foundation (NKF) estimates that over 37 million adults in the United States have kidney disease, also known as chronic kidney disease (CKD), and approximately 1 in 3 adults in the U.S. are at risk for kidney disease. These risk factors include diabetes, high blood pressure, heart disease, obesity, and family history. The NKF established National Kidney Month to raise awareness about kidney health and CKD.

According to the Centers for Disease Control and Prevention (CDC), chronic kidney disease often develops slowly and with few symptoms. As a result, many people aren’t aware they have CKD until it’s advanced and they need dialysis or a kidney transplant to survive.

If you have diabetes, it is important to visit your doctor and check your kidneys regularly with simple blood and urine tests. Regular testing is your best chance for identifying CKD early if you do develop it. Early treatment is most effective and can help prevent additional health problems.

The QualChoice QCARE program provides extra care for members living with diabetes. Eligible members and dependents can take part at no added cost as part of their QualChoice benefits.* Our registered nurse health coaches provide personal support to help members manage their diabetes. This helps improve their quality of life and reduce related problems, including CKD.

Diabetes Management Program Overview (PDF)

NOTE: Programs vary by employer group and benefit plan. Members should check with their benefits administrator.

National Prescription Drug Take Back Day is April 27, 2024, 10 a.m.–2 p.m.

The National Prescription Drug Take Back Day provides a safe, convenient, and responsible means of disposing of prescription drugs, while also raising awareness about the potential for abuse of medications.

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