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May HR News Worth Review

HSA/HDHP Limits, ACA Maximum Out of Pocket Increase for 2023

On April 29, 2022, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of each year.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals age 55 or older may make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022).

HSA/HDHP Limits
The following chart shows the HSA and HDHP limits for 2023 as compared to 2022. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.
Employer Takeaway
Most carriers will address these requirements for their clients (see, for example, information from UHC and Cigna). Employers with self-funded plans should work with their carrier/TP to ensure compliance.

ACA Maximum Out-of-Pocket Limits
On April 28, 2022, the Department of Health and Human Services (HHS) filed its final Notice of Benefit and Payment Parameters for 2023. This final rule describes benefit and payment parameters under the Affordable Care Act (ACA) that apply for the 2023 benefit year.

Included in this release is the updated annual limitations on cost sharing for health plans. 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. Employers should take note that these ACA maximum out-of-pocket limits are significantly lower than what is allowed under HDHPs as noted above. 

Employer Takeaway
Employers should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for their plan year beginning in 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.


EEOC Reporting for 2021 Workforce Data Due by May 17th

The portal for private sector employers to submit equal employment opportunity (EEO-1) workforce data from 2021 to the U.S. Equal Employment Opportunity Commission (EEOC) has opened as of April 12, 2022. The deadline for submissions is May 17, 2022. This data collection was previously delayed due to the COVID-19 pandemic.

EEO-1 Reporting Background
Mandated under Title VII of the Civil Rights Act, the EEO-1 Report is an annual survey that requires certain employers to submit information about their workforces by race or ethnicity, gender and job categories by March 31 every year. The EEOC uses the collected data to enforce Title VII’s prohibitions against employment discrimination based on race, color, religion, national origin or sex.

Employers Subject to EEO-1 Reporting
In general, a private sector employer is subject to EEO-1 reporting if it:

  • Has 100 or more employees;
  • Has 15-99 employees and is part of a group of employers with 100 or more employees; or
  • Is a federal contractor with 50 or more employees and a contract of $50,000 or more.

Employer Takeaway
Employers subject to EEO-1 reporting requirements should begin submitting 2021 EEO-1 data in the EEO-1 portal and ensure they complete these submissions by May 17, 2022. These employers should also review the EEOC’s home page and website dedicated to EEO data collections for additional information.


Which Federal Employment Laws Apply to My Company?

There are a number of different federal employment laws that have their own rules for covered employers. Employers should be aware of the federal employment laws that may apply to their company.

An employer’s size, or number of employees, is a key factor in determining which federal employment laws the employer must comply with. Some federal laws, such as the Equal Pay Act (EPA), apply to all employers, regardless of size. However, other laws, such as the Family and Medical Leave Act (FMLA), only apply to employers that reach a certain employee count. Also, some federal laws, such as COBRA, include exclusions for certain types of employers (for example, churches).

Here is a high-level overview of key federal employment laws with explanation of employers they apply to.

Employer Takeaway
With consideration to the link above, most states also have their own labor and employment laws. The overview does not address state labor laws, and it also does not address additional compliance requirements for companies that contract with the federal government or businesses in specific industries.

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