Compliance Bulletin | May 2024

Welcome to the May 2024 edition of the Baldwin Bulletin, a compliance newsletter by the Baldwin Regulatory Compliance Collaborative (BRCC).

The Baldwin Bulletin serves as a monthly guide to important regulatory developments, legal news, and employee benefits-related industry happenings designed to keep you abreast of the latest developments.

This month’s issue focuses on important upcoming compliance deadlines and includes our timeline of upcoming compliance requirements, in addition to providing information regarding certain hot-button compliance issues significantly impacting employers.

Upcoming Compliance Deadlines. For information regarding upcoming compliance deadlines for employer-sponsored group health plans, read more here.

2024 HIPAA Privacy and Security Rule Training Calendar. This year’s BRCC HIPAA training calendar is available here.

2024 BRCC Educational Webinar Calendar. The BRCC’s monthly educational webinar series calendar for 2024 is available here.

Form 5500 Deadline is July 31, 2024, for Calendar Year Plans. Employers that are subject to the Employee Retirement Income Security Act of 1974 (ERISA) must electronically file an annual report, known as the Form 5500, for each employee benefit plan they maintain unless a filing exemption applies. The due date is July 31, 2024.  Read more here.

Final Regulations Issued by the Departments Regarding Short-term, Limited-duration Insurance and Fixed Indemnity Coverage. On March 28, 2024, the Departments of Health and Human Services (HHS), Labor, and the Treasury (collectively, the Departments) released final rules regarding short-term, limited-duration insurance (STLDI) and hospital indemnity or other fixed indemnity insurance.  The regulations will be effective on June 17, 2024.  One of the main objectives of amending the current rules is to help consumers distinguish these plans from comprehensive medical coverage. Read more here.

Section 213(d): Overview and Applicability of Allowable Medical Expenses. Section 213(d) of the Internal Revenue Code is a crucial component of the U.S. tax system with which employers should be familiar. This code section relates to the regulation of medical expenses that employees can claim with respect to certain account-based and other employer sponsored arrangements. Understanding this section will help employers provide comprehensive benefits, optimize plan participation, and support their workforce effectively. Read more here.

Impact of the Religious Freedom Restoration Act (RFRA) on the ACA Sec. 1557 & Title VII of the Civil Rights Act (CRA). U.S. District Court Ruling in Christian Employers Alliance v. EEOC, et al. limits Federal Government enforcement of ACA Sec. 1557 and Title VII of CRA if they Interfere with the Religious Freedom Restoration Act. Read more here.

PCORI 2024 Fee Payment Amount Adjusted and Payment Reminder. The annual fee to fund the Patient-Centered Outcomes Research Institute (PCORI) ​is due on July 31, 2024. The fee is paid by filing IRS Form 720 (Quarterly Federal Excise Tax Return) and is based on the number of “covered lives” during the plan year. The payment amount was adjusted for the 2024 payment. Read more here.

Important Update on New Medicare Part D Creditable Coverage Determination. In the April 2023 Baldwin Bulletin, it was reported that the Inflation Reduction Act of 2022 (“IRA”) includes several cost-reduction provisions affecting Medicare Part D plans, which may impact the creditable coverage status of employer-sponsored prescription drug coverage beginning in 2025. However, according to the Final Part D Redesign Program Instructions, CMS will continue to permit the use of the simplified determination methodology, without modification, for calendar year 2025 for group health plan sponsors. Read more here.

U.S. Supreme Court Hears Arguments Related to Legality of Medication Abortion. On March 26, 2024, the Supreme Court heard the case of Alliance for Hippocratic Medicine, et al v FDA (5^th Circuit Court ruling, stayed and currently awaiting final adjudication from the U.S. Supreme Court), involving challenges to the FDA’s September 2000 approval of mifepristone for medication abortion.  Read more here.

Question of the Month. Our “Question of the Month” concerns a mid-year election change and whether a spouse who just moved to the U.S. can enroll in an employer sponsored qualified plan. Read more here.