Compliance Stuff

On July 4, 2025, President Donald Trump signed a comprehensive  budget reconciliation bill  into law, loosening rules around health savings accounts (HSAs), extending telehealth relief, and providing additional income tax relief for tips, overtime pay, and some popular employee fringe benefits. Quick Hits The budget reconciliation bill makes important changes to health savings account (HSA) eligibility and reimbursements, including retroactively restoring the telehealth relief provided by the CARES Act. It also addresses tax relief provided to several fringe benefits. The law also eliminates income taxes on tips and overtime pay. Coverage for Telehealth Services The law makes permanent the  telehealth provisions from the CARES Act in 2020  and subsequent guidance that allow high-deductible health plans (HDHPs) to cover telehealth and other remote medical services before the deductible and still qualify as an HSA-eligible plan . This provision had expired at the end o...

Takeaways Republicans in the U.S. House of Representatives attempt to deliver on President Trump’s campaign promises in the One Big Beautiful Bill Act (BBB or the Act), which passed the House by a razor-thin margin of 215 in favor and 214 opposed on May 22, 2025 .  BBB shows favoritism of Health Savings Accounts and Health Reimbursement Account benefits , making changes to broaden their scope, increase utilization, and bolster savings.   The Act also provides a glimpse into legislative or regulatory changes that may be on the horizon for ERISA-governed plans, including standards for Pharmacy Benefit Manager compensation, contractual requirements, and disclosures applicable to government-subsidized plans.  Related Links One Big Beautiful Bill Act (H.R. 1) Executive Order:  Lowering Drug Prices by Once Again Putting Americans First Executive Order:  Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients Fact Sheet: President Donald J. T...

  The Internal Revenue Service (IRS) has taken the position that employers may incorporate health savings accounts (HSAs) and student loan payments among the allocation options for employer contributions offered outside of cafeteria plans. Quick Hits Employers may include HSAs and student loan payments among their employees’ allocation choices for employer contributions to benefit plan s. Some employers provide flexibility with regard to the allocation of their employer contributions among benefit plans as a way to enhance recruiting and retention. New contribution limits will kick in for HSAs and health reimbursement arrangements (HRAs) for 2025. Many employers and HR professionals have finished the open enrollment period for the 2025 plan year and are beginning t o make the next strategic decisions about their benefit plans for the future. A recent clarification in IRS policy permits employers to offer a broader range of options for allocations of employer contributions among ben...

  Employees will be able to sock away more money in their health savings accounts (HSAs) next year, thanks to rising inflation. The annual limit on HSA contributions for self-only coverage in 2025 will be $4,300, a 3.6 percent increase from the $4,150 limit in 2024, the IRS announced May 9. For family coverage, the HSA contribution limit will jump to $8,550, up 3 percent from $8,300 in 2024. IRS Announces 2025 HSA, HDHP Limits SHRM | May 2024 Effective date: 1/1/25 IRS Revenue Procedure 2024-25 Additional Articles IRS announces 2025 HSA/HDHP and excepted benefit HRA limits Buck | May 2024 IRS Announces 2025 Limits for Health Savings Accounts, High-Deductible Health Plans and Excepted Benefit HRAs McDermott | May 2024 IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits Woodruff | May 2024 2023 Health Savings Account (HSA) Limits IRS Gives Big Boost to HSA, HDHP Limits in 2024 SHRM | May 2023 IRS Revenue Procedure 2023-23 Source(s): SHRM, (originall...