On May 2, 2024, the IRS published the revised 2024 IRS Publication 15-B, the Employer's Tax Guide to Fringe Benefits, to correct the figures for HSA eligibility and employer contribution limits. The 2024 IRS Publication 15-B was originally published in January 2024 and was covered in the January 17, 2024, edition of Compliance Corner. This publication provides an overview of the taxation of fringe benefits and applicable exclusion, valuation, withholding, and reporting rules.

On April 26, 2024, the HHS Office for Civil Rights (OCR) announced that it published a final rule strengthening privacy protections for information relating to reproductive healthcare. The agency proposed the rule on April 23, 2023, which we covered in the April 27, 2023, edition of Compliance Corner.

On May 1, 2024, the DOL, HHS, and Treasury (the departments) issued an FAQ regarding implementation of the No Surprises Act in light of the August 24, 2023, decision in Texas Medical Association, et al. v. U.S. HHS, et al. (TMA III) (see our August 17, 2023, and October 26, 2023, editions of Compliance Corner for coverage of this case). Specifically, the FAQ extends enforcement relief related to calculating equivalent in-network rates for out-of-network services covered under No Surprises Act protections until November 1, 2024.

On April 29, 2024, the DOL announced a final rule to rescind the 2018 Association Health Plan (AHP) rule that created alternative criteria that could be used to determine whether a group or association of employers without a commonality of interest could establish an AHP for the primary purpose of providing benefits. We covered the DOL’s proposed rule in our January 3, 2024, edition of Compliance Corner.

HHS has published a final rule expanding protections under Section 1557 of the ACA, which prohibits discrimination in certain health programs and activities on the basis of race, color, national origin, sex, age, or disability in any health program activity that receives federal financial assistance and other covered entities. The Section 1557 regulations that took effect in 2016 under the Obama administration expanded the scope of Section 1557 prohibitions by including discrimination based upon gender identity. The 2016 regulations also required entities covered by the rule to...

On April 11, 2024, in Ryan S. v UnitedHealth Group, Inc., et al., the Ninth Circuit Court of Appeals (Ninth Circuit) filed a decision reversing a Middle District of California District Court dismissal of a class action suit brought under ERISA by a beneficiary (Ryan S.) of a group health plan insured, managed, and administered by UnitedHealthcare (UHC). The lawsuit, which alleged a MHPAEA violation and breach of an ERISA fiduciary duty, was remanded for further proceedings.

On April 13, 2024, the IRS released a set of FAQs concerning the tax treatment of work-life referral (WLR) services that employers may provide to employees. The FAQs establish that WLR services are a de minimis fringe benefit excluded from an employee’s gross income and from the employer’s employment taxes.

In response to a request by Congress, the Government Accountability Office (GAO) recently released a report focusing on state regulation of PBMs serving private health plans. Among other things, the report describes actions selected states have taken to regulate PBMs and the views of various stakeholders regarding such state regulation.

The final rules follow several Biden Administration Executive Orders, which direct the departments to review policies for consistency with the goals of strengthening ACA protections and providing access to affordable, comprehensive healthcare. The Biden Administration also seeks to ensure individuals understand their coverage options so they do not unknowingly purchase low-quality coverage (referred to as “junk insurance”) that may result in burdensome household medical debts. Accordingly, the final rules impose new restrictions on coverage not fully subject to the ACA...

On April 2, 2024, the HHS, CMS, and IRS released the 2025 Notice of Final Benefit and Payment Parameters (the 2025 final rule), an accompanying fact sheet, and, in coordination with the DOL, a related FAQ. The 2025 final rule, which follows a proposed rule issued on November 15, 2023, is primarily directed at health insurers and the ACA marketplace but includes certain information that directly or indirectly impacts group health plans.