Year-End Employee Benefits Legislation: Key Updates for 2024
With 2025 right around the corner, Congress has passed key updates for employee benefits in the year-end government funding bill. Here are the most important updates:
The HSA Telehealth Relief Extended Through 2026
Earlier, one of the key requirements for HSA Telehealth Relief required the individuals to meet the deductible of their high-deductible health plan (HDHP), but now, this deductible has been waived temporarily for telehealth services – up until 2026; allowing ease for individuals using telehealth. Even though the majority had hoped for a permanent relief, a little goes a long way for many.
ACA Reporting Simplified
According to the Paperwork Burden Reduction Act, Form 1095-C for full-time employees is no longer required by Applicable Large Employers (ALEs). Instead, starting with the 2024 reporting period, ALEs only need to provide it once requested, significantly reducing administrative work for employers and employees.
ACA Penalties – You’ve Got Time!
As per the Employer Reporting Improvement Act, employers now have extended time to respond to IRS penalty notices such as letter 226J. This time frame has been extended from 30 days to 90 days. Furthermore, to provide employers with more time to address potential issues, a six-year statute of limitations for ACA employer mandate penalties has also been established.
PBM Oversight Delayed Until 2028
Additionally, the new bill includes provisions for enhanced oversight of Pharmacy Benefit Managers, going into effect in 2028 – with the main aim to improve transparency in the prescription drug market.
It seems that 2025 is a favorable year for employers, given the ease of administrative burdens and more time to comply with regulations. These changes are moving the complex world of employee benefits towards simplicity and ease for both, employees and employers.
Disclaimer: This post provides general information and is not legal advice. Employers should consult benefits professionals for specific guidance.
