Legislative Updates

The IRS will be increasing the Patient-Centered Outcomes Research Institute (PCORI) Fee from $2.79 to $3.00 per covered member for all plans with plan years that end on or after October 1, 2022 and before October 1, 2023.  

Self-Insured employers pay the fee directly to the IRS and report the number of covered members on Form 720 by July 31, 2023.  For fully insured employers, the fee is paid by the insurance provider.  

The IRS announced 401(k) and other tax deferred retirement plan limits for 2023.  Limits will rise to $22,500 up from $20,500.  Participants age 50 and older will be able to contribute an additional $7,500 up from $6,500 in 2022.  

N-2022-55 (irs.gov)

On October 19th, the Equal Employment Opportunity Commission (EEOC) released an updated "Know Your Rights" poster which replaces the "EEOC is the Law" poster.  The "Know Your Rights" poster informs employees of their rights to be free from workplace harassment and discrimination.  Covered employers must display the new poster in the workplace.

“Know Your Rights: Workplace Discrimination is Illegal” Poster | U.S. Equal Employment Opportunity Commission (eeoc.gov)

The Department of Homeland Security and U.S. Immigration and Customs Enforcement announced an extension of the flexibility in complying with requirements related to Form I‑9, Employment Eligibility Verification, due to COVID‑19.  Flexibility rules were set to expire on October 31, 2022 but has now been extended to July 31, 2023.  

Starting April 1, 2021, if an employee works exclusively in a remote setting due to COVID-19 related precautions, they are temporarily exempt from the physical inspection requirements associated with the Form I-9.

ICE announces extension to I-9 compliance flexibility | ICE

The Biden administration extended the COVID-19 public health emergency for 90 days through January 11, 2023. 

The extension of the public health emergency means that group health plans and insurers must pay for COVID-19 tests and related services without cost-sharing.  Group health plans and insurers may also need to cover expenses for COVID-19 vaccines without cost-sharing based on grandfathered or non-grandfathered status.  

COVID-19: RENEWAL OF DETERMINATION THAT A PUBLIC HEALTH EMERGENCY EXISTS (hhs.gov)

On October 18, 2022, the IRS announced an increase to the medical flexible spending limit from $2,850 to $3,050 for 2023.  If an employer allows the carryover of unused health FSA amounts, the maximum carryover amount will increase from $570 to $610.

The US Department of Labor announced that they are expanding the criteria for placement in the Occupational Safety and Health Administration's Severe Violator Enforcement Program in order to strengthen and improve compliance for safety standards.  

Per OSHA's news release, the updated criteria will now include the following:

• Program placement for employers with citations for at least two willful or repeated violations or who receive failure-to-abate notices based on the presence of high-gravity serious violations.
• Follow-up or referral inspections made one year – but not longer than two years – after the final order.
• Potential removal from the Severe Violator Enforcement Program three years after the date of receiving verification that the employer has abated all program-related hazards. In the past, removal could occur three years after the final order date.
• Employers' ability to reduce time spent in the program to two years, if they consent to an enhanced settlement agreement that includes use of a safety and health management system with seven basic elements in OSHA's Recommended Practices for Safety and Health Programs.

You can find the news release at US Department of Labor announces changes to OSHA’s Severe Violator Enforcement Program to strengthen enforcement, improve compliance | Occupational Safety and Health Administration.  

On September 15th, Safer Federal Workforce Task Force clarified that they will not implement or enforce the COVID-19 vaccination requirement pursuant to Executive Order (E.O.) 14043 on Requiring Coronavirus Disease 2019 Vaccination for Federal Employees. 

SFWTF_model agency safety principles_20220915.pdf (saferfederalworkforce.gov)

Employers that offer prescription drug coverage in 2023 must provide notices of coverage to Medicare eligible employees or covered dependents by October 14, 2022.  This is before the annual Medicare Part D enrollment period begins which is from October 15th to December 7.    The notice requirement applies to both fully insured and self-funded plans.

Model Notices are available at: 

Credible: Important Notice to those Covered under Sponsor Plans (cms.gov)

Non-Credible: Important Notice to those Covered under Sponsor Plans (cms.gov)

Following President Biden's executive order on ensuring access to reproductive health care, the Department of Health and Human Services and the Department of Labor issued guidance for birth control coverage protections under the Affordable Care Act (ACA).  Most non-grandfathered health plans are required to provide contraceptives at no cost to members. 

Read the new guidance at: FAQS ABOUT AFFORDABLE CARE ACT IMPLEMENTATION PART 54 (cms.gov)