News from Ollis/Akers/Arney Human Resources Consulting

5 Employee Benefits Trends Shaping 2025

Employee benefits are transforming, and employers can get ahead of these changes as they strive to attract and retain top talent. The modern workforce is multigenerational, with evolving expectations around work-life balance, mental health and personalized benefits. In this dynamic environment, understanding and implementing the latest trends in employee benefits can set an organization apart as an employer of choice.

This article explores five key trends that will shape employee benefits in 2025:

New Administration's Benefits Changes - Following the 2024 election and the return of the Trump administration to the White House, employers are keeping their eyes out for imminent changes to the health care system.
Health Plan Design Modifications - This year, employers may struggle to mitigate skyrocketing health care costs while keeping benefits affordable for employees. As a result, many employers will plan and implement multiple cost-saving strategies to mitigate rising health care costs. One such popular strategy is modifying health plan designs.
Supportive Family-building Benefits - Reproductive health care benefits remain a key issue for employers as they strive to meet employee needs and remain competitive. Additionally, more employers are offering family-building benefits because they have proven highly valued among employees looking to start or build their families.
Growing Popularity of GLP-1s - Americans’ heightened interest in and spending on GLP-1 drugs is a major driver of rising health care costs. While GLP-1 drugs were traditionally used to treat diabetes, they are now in demand for weight loss.
The Rise of Biosimilars - Specialty drugs, including biological drugs, are one the fastest-growing categories of pharmacy spending. Biologics are medications that come from living organisms, such as sugars, proteins and DNA. Biologics treat a range of conditions, such as cancer, psoriasis, rheumatoid arthritis and inflammatory bowel diseases.

As the workforce’s needs continue to evolve, so must the benefits that companies offer to remain relevant and meaningful to employees. Every workplace is different, but employers can strive to monitor and understand the latest benefits trends to better attract and retain workers.

Read the entire article HERE

ACA Deadline - March 31st

The Affordable Care Act (ACA) created reporting requirements under Internal Revenue Code (Code) Sections 6055 and 6056. Under these rules, certain employers must provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees.

Under the original rules, any reporting entity that was required to file at least 250 individual statements under Sections 6055 or6056 had to file electronically. However, on Feb. 23, 2023, the IRS released a

final rule which lowers the 250-return threshold for mandatory electronic reporting to 10 returns.

As a result, most reporting entities are now required to complete their ACA reporting electronically.

NLRB Rescinds Several

Biden-era Memorandums

On Feb. 14, 2025, the Acting General Counsel (GC) of the National Labor Relations Board (NLRB) issued a memorandum rescinding several policies issued by the previous NLRB GC, including memorandums addressing severance and noncompete agreements, captive audience bans and the rights of student-athletes under the National Labor Relations Act (NLRA).

Although the GC memorandum is not binding, it provides a framework for several potential major policy changes at the NLRB. However, any changes will likely occur slowly since the board currently does not have a quorum. Therefore, while employers can take steps now to comply with the memorandum (including evaluating any existing stay-or-play provisions and noncompete agreements), they should continue to monitor for updates.

Read the entire article HERE

Missouri Supreme Court Hears Prop A Arguments

Last week, the Missouri Supreme Court heard oral arguments in the legal challenge to Proposition A. Prop A mandates businesses provide paid sick leave to employees. It also raises Missouri’s minimum wage to $15 an hour by 2026 and requires future increases based on the rate of inflation.

The Missouri House lawmakers passed HB 567 which would remove paid sick leave requirements. It maintains the $15 minimum wage but eliminates the annual increases based on the Consumer Price Index. The bill now heads to the Missouri Senate for consideration.

We’ll have more information as it becomes available on Proposition A and HB 567.

IRA Changes to

Medicare Part D

The Inflation Reduction Act of 2022 (IRA) includes several cost-reduction provisions to Medicare Part D plans that are designed to help beneficiaries but may also impact employer-sponsored health plans.

Key benefits include the following:

Insulin is available at $35 per month per covered prescription, and recommended adult vaccines are available without cost sharing;
There is a yearly cap of $2,000 on out-of-pocket Medicare Part D prescription drug costs; and
All Medicare Part D plans are required to offer enrollees the option to pay out-of-pocket prescription drug costs in the form of capped monthly installments through the Medicare Prescription Payment Plan instead of all at once at the pharmacy.

Lower Medicare costs could mean higher costs for employers that provide prescription drug coverage as pharmacies and providers seek to make up for lost revenue by increasing costs in the private sector.

Read article HERE

Protecting Employees' Medical Information

Employers obtain employees' medical information for various reasons, such as verifying a reasonable accommodation request, certifying leave or confirming eligibility for disability benefits. At the federal level, there are several laws restricting when employers can ask for employees' medical information and requiring employers to keep such information confidential. These laws include the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), the Genetic Information Nondiscrimination Act of 2008 (GINA), and the Health Insurance Portability and Accountability Act (HIPAA).

When an employer has access to protected health information (PHI) for health plan administrative functions, the employer must comply with certain requirements of the HIPAA Rules. For example, the employer must implement appropriate administrative, physical and technical safeguards to protect the privacy and security of PHI and train its workforce on its privacy and security policies. Also, the employer cannot use PHI from the health plan in any employment-related action or decision or in connection with any other benefit plan.

Details are HERE

Best Practices for Rescinding a Job Offer

In most cases, the transition from hiring to onboarding an employee is straightforward. However, in some instances, employers may find themselves in a position where they must rescind a job offer. This is a difficult situation for both the employer and the newly hired candidate. In particular, rescinding a job offer can expose an employer to legal claims and reputational damage. Therefore, it is important for employers to understand the potential ramifications of rescinding a job offer and the measures they can take to mitigate their risks.

Important consideration for employers when rescinding a job offer include:

Establishing a valid, lawful reason for rescission;
Reviewing all relevant documentation, including offer letters and employee policies;
Considering alternatives to rescission;
Effectively communicating the decision to the candidate; and
Determining appropriate next steps, including selecting an alternative candidate and reviewing hiring practices.

Prior to rescinding a job offer, employers should carefully consider their obligations and any potential legal or business risks. This Compliance Overview provides employers with best practices to minimize the risk of litigation or reputational harm to their organization.

Read the Overview HERE