Employee Benefits News
The "One Big Beautiful Bill Act" Includes Employee Benefits Changes
The "One Big Beautiful Bill Act" (OBBB Act) signed on July 4, 2025 includes changes for employee benefit plans, including provisions that:
- Expand the availability of health savings accounts (HSAs);
- Permanently extend the telehealth exception for high-deductible health plans (HDHPs);
- Increase the maximum annual limit for dependent care flexible spending accounts (FSAs);
- Allow employers to help pay employees’ student loans beyond 2025 and make cost-of-living adjustments to the tax exclusion for educational assistance programs; and
- Allow employers to contribute up to $2,500 per year to a new type of tax-advantaged account for children, called a “Trump Account.”
Our team recently held an informative webinar on the "OBBB Act." View the webinar recording here.
HSA/HDHP Limits Will Increase for 2026
On May 1, 2025, the IRS released Revenue Procedure 2025-19 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2026. The IRS is required to publish these limits by June 1 of each year.
Additional Resources:
HSA/HDHP Limits Will Increase for 2026
Navigating Health Plan Notice Changes in 2025 and Beyond
Employers should review updated federal model notices from 2024 and 2025 to ensure their group health plan disclosures remain compliant. They should also stay informed about recent court rulings that have altered or paused certain notice obligations and adjust their compliance practices accordingly.
Ongoing monitoring of legal and regulatory developments is essential, as future updates may further impact notice requirements.
Medical Loss Ratio (MLR) Rules
The Affordable Care Act (ACA) established medical loss ratio (MLR) rules to help control health care coverage costs and ensure that enrollees receive value for their premium dollars. Under the MLR rules, health insurance companies must disclose how much they spend on health care and how much they spend on administrative costs, such as salaries and marketing.
The MLR rules require health insurance issuers to spend 80—85% of premium dollars on medical care and health care quality improvement, rather than administrative costs. Issuers that do not meet these requirements must provide rebates to consumers.
Medicare Part D Notices Are Due Before October 15
Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable.
Plan sponsors must provide the annual disclosure notice to Medicare-eligible individuals before October 15, 2025—the start date of the annual enrollment period for Medicare Part D. CMS has provided model disclosure notices for employers to use.
Click here for more information and action steps employers should take.
HR on Mic - Improving a Toxic Workplace Culture
Company cultures can go bad over time. Join HR on Mic hosts Corbin and Barbara as they discuss how to recognize a toxic culture and practical steps you can take to turn things around.