Many important HR compliance deadlines are approaching quickly. Your immediate attention is required to ensure compliance and avoid costly penalties. Act now to ensure your organization stays ahead of these regulatory obligations.

Major Medicare Part D Changes Coming in 2025

Starting in 2025, Medicare Part D will introduce a new, enhanced benefit design that could change the creditable status of employer-sponsored prescription drug coverage. Employers must evaluate their plans to determine if the coverage remains creditable or becomes non-creditable for the upcoming plan year. This process involves reviewing whether your plan meets Medicare’s standards and communicating with your employees accordingly. By addressing these changes now, you can ensure a smooth transition and avoid any compliance pitfalls down the line.

Nondiscrimination Testing for Cafeteria and Self-Insured Plans

Employers offering §125 cafeteria plans, health and dependent care FSAs, HRAs, and other self-insured plans must complete nondiscrimination testing by year-end. Failing to do so could result in imputed income issues and strained employee relations. These tests ensure that highly compensated employees do not receive disproportionately favorable benefits. Since corrections cannot be made after the close of the year, acting now is crucial to avoiding future tax liabilities and maintaining internal equity.

HIPAA Privacy Manual Updates by the End of 2024

HIPAA compliance is essential for any employer that sponsors health plans, including self-funded medical plans, FSAs, and HRAs. New rules surrounding the privacy of reproductive healthcare information must be reflected in your HIPAA Privacy Manual by the end of 2024. Employers must review and update their manuals to incorporate these changes, ensuring they protect employees’ personal health information and avoid potential penalties.

ACA Reporting: One of the Most Enforced Provisions

The Affordable Care Act (ACA) requires strict reporting for applicable large employers (ALEs), defined as those with an average of 50 or more full-time equivalent employees. ACA reporting remains one of the most enforced compliance requirements, with Forms 1094-C and 1095-C due electronically in the first quarter of 2025 for the 2024 plan year. Start preparing now to e-file your forms and avoid fines for late or incorrect submissions.

Form 5500 Filing for Large Health & Welfare Plans

Employers with 100 or more employees participating in their health and welfare plans as of the first day of the plan year must file Form 5500. While smaller plans may be exempt, large plans need to meet this requirement, with the filing deadline falling on the last day of the seventh month following the plan year’s end. To stay compliant, ensure you’re prepared for this filing, which applies to all ERISA plans.

Take Action Now—Avoid Penalties Later!

Navigating employee benefits compliance can be complicated, but staying on top of the latest updates is crucial for avoiding penalties. Whether you’re preparing for Medicare Part D changes, ACA reporting, or updating your HIPAA privacy manuals, proactive planning will help ensure a seamless transition into 2025.

Our team is here to help guide you through these important compliance updates. Don’t wait—reach out to us for advice and support.

Together, we can help ensure your benefits programs remain compliant and competitive, keeping you ahead of the regulatory curve.