Capitol Benefits Group News & Updates
Inflation-Adjusted Contribution Limits and HDHP Amounts to Increase
The IRS has announced the 2023 inflation-adjusted amounts for health savings accounts (HSAs) as determined under the Internal Revenue Code.
Annual Contribution Limits
For calendar year 2023, the annual limit on HSA contributions for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,850 (up from $3,650 for 2022). The annual limit on HSA contributions for an individual with family coverage under an HDHP is $7,750 (up from $7,300 for 2022).
HDHP Amounts
For plan years beginning in 2023, an HDHP is defined as a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $7,500 for self-only coverage or $15,000 for family coverage.
Click here to read the IRS announcement.
School Principals to Authorize Youth Employment Certificates for Nebraska
On April 20, 2022, Nebraska amended its child labor laws to streamline the process for approving youth employment certificates. The amended provisions become effective on July 19, 2022.
Youth Employment Certificates
In Nebraska, employers must obtain youth employment certificates before employing any minors under the age of 16. These certificates must be accessible to the Nebraska Department of Labor (NDOL).
Employers must also keep at least two complete lists of minors under the age of 16 who work under these certificates. One of these lists must be on file, while the other must be conspicuously displayed near the principal entrance to the building where the minors are employed.
Amended Certificate Issuance Process
Until July 18, 2022, Nebraska requires the superintendent of the school district where the child resides to approve each youth employment certificate.
Beginning July 19, 2022, each youth employment certificate will be authorized by the principal of the school the child attends. When the school principal is not available, the certificate may be approved by someone authorized by the chief administrative officer of the school or the superintendent of the school district in which the child resides.
For the protection and best interests of youth workers, an already existing child labor provision indicates that no individual is allowed to approve a certificate for a minor to work for the authorizer, as well as for the authorizer's affiliated firm or business (affiliation can be as an employee, member or officer).
Increased Penalty Amounts for SBC, MSP and HIPAA Violations Issued
Effective March 17, 2022, the U.S. Department of Health and Human Services (HHS) has increased the following key penalties affecting group health plans:
Summary of Benefits and Coverage (SBC): Failure to provide group health plan participants and beneficiaries with an SBC may now result in a penalty of up to $1,264 per participant or beneficiary.
Medicare Secondary Payer (MSP): Violating the prohibition of offering Medicare beneficiaries financial or other benefits as incentives not to enroll in or to terminate enrollment in a group health plan that would otherwise be primary to Medicare will now trigger penalties of up to $10,360.
HIPAA privacy and security rules: Penalties for a covered entity or business associate violating Health Insurance Portability and Accountability Act's (HIPAA) privacy and security rules will depend on the type of violation involved. Penalties are broken down into tiers that reflect increasing levels of knowledge about the violation. Each tier carries a minimum and maximum penalty with an annual cap, all of which have increased as follows:
Tier one: Minimum penalty $127, maximum penalty $63,973, annual cap $1,919,173
Tier two: Minimum penalty $1,280, maximum penalty $63,973, annual cap $1,919,173
Tier three: Minimum penalty $12,794, maximum penalty $63,973, annual cap $1,919,173
Tier four: Minimum penalty $63,973, maximum penalty and annual cap $1,919,173
Employers should become familiar with the new penalty amounts and review their benefit plan administration protocols to ensure full compliance.
Bill Passes With Bipartisan Support
On March 29, 2022, the U.S. House of Representatives passed the Securing a Strong Retirement Act of 2022 with a bipartisan vote of 414-5. The act is often referred to as "SECURE 2.0" because it builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.
Key SECURE 2.0 proposals include:
Expanding automatic enrollment in 401(k) and 403(b) retirement plans (for plan years beginning after Dec. 31, 2023);
Increasing the age for required minimum distributions (the SECURE Act increased this to age 72, while SECURE 2.0 would raise the age further to 73 starting on Jan. 1, 2023, to age 74 on Jan. 1, 2030, and to age 75 on Jan. 1, 2033);
Improving coverage for part-time workers in 401(k) plans by reducing the years of service requirements for long-term, part-time workers to participate (for plan years beginning after Dec. 31, 2022);
Increasing catch-up contributions for people aged 50 and over (for taxable years beginning after Dec. 31, 2023);
Allowing SIMPLE IRAs to accept Roth contributions (for tax years beginning after Dec. 31, 2022);
Treating student loan payments as elective deferrals for purposes of matching contributions (for plan years beginning after Dec. 31, 2022);
Modifying the credit for small employer pension plan startup costs (for taxable years beginning after Dec. 31, 2022); and
Establishing a national, online Retirement Savings Lost & Found Database for workers and retirees to find their lost retirement accounts (no later than two years after the date of enactment).
More information can be found here.
The Notice Includes Benefit and Payment Standards for 2023
On April 28, 2022, the Department of Health and Human Services (HHS) issued a final Notice of Benefit and Payment Parameters (NBPP) for 2023. This final rule describes benefit and payment parameters under the Affordable Care Act (ACA) that apply for the 2023 benefit year. Finalized standards in the rule include:
Updated annual limitations on cost sharing-The finalized 2023 maximum annual limit on cost sharing is $9,100 for self-only coverage and $18,200 for other-than-self-only coverage.
The individual mandate's affordability exemption-The finalized 2023 required contribution percentage is 8.17%.
Standardized plan options in the Exchanges-The final rule requires insurers in the federally facilitated Exchanges (FFEs) and state-based Exchanges using the federal platform (SBE-FPs) to offer certain standardized plan options beginning with the 2023 plan year.
HHS declined to adopt standards from the proposed rule prohibiting discrimination based on sexual orientation and gender identity in benefit design and insurer marketing practices, by qualified health plans, and by states and Exchanges. Instead, HHS deferred finalizing these provisions to future rulemaking on ACA Section 1557.
The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
Tracy Hitchcock and Marcie Strouse of Capitol Benefits Recognized by KHI Solutions for 2021 Production
Tracy Hitchcock and Marcie Strouse of Capitol Benefits Group were recently recognized by KHI Solutions and received the Partners in Excellence Grow your Business and Diamond Achieve awards.
KHI is a General Agency serving nearly 500 agents across the state of Iowa and presented these awards to the top 10% and 5% of their agents based on 2021 sales production and retention at a dinner reception held in late March 2022. These awards acknowledge the expertise and sales experience that Tracy and Marcie use to find the right benefit solutions and strategies to fit the individual needs of their clients.
Capitol Benefits Group shares the same philosophy of KHI Solutions by focusing on the needs of clients by providing the right product at the right price to deliver unsurpassed confidence and peace of mind to clients.
Webinar Archive
Employers often find it challenging to keep track of their obligations under the FMLA. Employers can avoid common problems by understanding the FMLA's leave requirements and implementing the correct administrative procedures.
During this webinar, we will provide a step-by-step overview of the FMLA's requirements to help employers stay in compliance with the law.
Watch Last Month’s Webinar HERE