Your Monthly
Newsletter from Integrated Benefit Solutions
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December 2020
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Employee Benefits Plan Limits for 2021
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Many employee benefits are subject to annual
dollar limits that are periodically updated for inflation by the
IRS.
The IRS typically announces the dollar limits that will apply for
the next calendar year well in advance of the beginning of that
year. This gives employers time to update their plan designs and
make sure their plan administration will be consistent with the
new limits. Although some of the limits will increase for 2021,
most of the limits remain the same.
Increased
Limits
For plan years beginning on or after Jan. 1, 2021, the following
limits have increased:
- Health
savings account contributions:
- Single
coverage—$3,600 (up $50)
- Family
coverage—$7,200 (up $100)
- High
deductible health plan (HDHP) out-of-pocket maximum limit:
- Single
coverage—$7,000 (up $100)
- Family
coverage—$14,000 (up $200)
- Tax
exclusion for adoption assistance benefits—$14,440 (up $140)
Unchanged Limits
Certain limits will not change for 2021, including the flexible
spending account salary reduction contribution limit, HDHP
minimum deductible, 401(k) contribution limit and transportation
fringe benefits monthly limits.
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Virtual Workplace Holiday Parties
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At the end of the calendar year, workplace holiday
celebrations are experiences that many employees look forward to.
However, in response to the COVID-19 pandemic, many organizations
are evaluating how to engage employees safely this holiday
season. Leaders find themselves tasked with deciding whether they
should cancel or postpone celebrations, or offer an amended
version that prioritizes safety—with many choosing to offer a
virtual holiday party.
Considerations
for Employers
Holiday celebrations can positively impact employee engagement,
but benefits should be weighed against other factors such as
financial costs and concerns over safety. For employers choosing
to offer a celebration, an event can be comprised of a variety of
activities—with many options that can take place virtually. These
include a:
- Secret Santa gift exchange
- Virtual mixer
- Gingerbread house contest
- Ugly sweater contest
- Holiday karaoke
- Online escape room
- Trivia contest
When hosting a holiday event, employers should
make sure to follow best practices, such as:
- Keeping attendance optional
- Keeping events general
rather than religious celebrations
- Ensuring employees are aware
of policies and expected behaviors
There are a variety of ways that leaders can
recognize employees this holiday season, and employers should
consider which initiatives are appropriate for their workplace.
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Final Rule on Health Care Transparency Issued
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The Departments of Labor (DOL), Health and Human
Services (HHS) and the Treasury (Departments) issued a final rule
that imposes new transparency requirements on group health plans
and health insurers in the individual and group markets.
Specifically, the final rule requires plans and issuers to
disclose:
- Price and cost-sharing
information to participants, beneficiaries
and enrollees upon request:
- A list of 500 shoppable services
must be available via the internet for plan years beginning
or after Jan. 1, 2023.
- The remainder of all items
and services is required to be available for plan years
beginning on or after Jan. 1, 2024.
- In-network
provider-negotiated rates and historical out-of-network
allowed amounts on their website:
- Detailed pricing
information must be made public for plan years beginning on
or after Jan. 1, 2022.
The final rule also allows issuers that share
savings with consumers—resulting from consumers shopping for
lower-cost, higher-value services—to take credit for those
“shared savings” payments in their medical loss ratio
calculations.
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How to Conduct 1-on-1 Benefits Meetings
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Employee
benefits programs are a big part of attracting and retaining top
talent. You’ve likely worked hard to
develop a competitive benefits package, but you may be
undermining your hard work by not communicating effectively.
Learn some tips for holding 1-on-1 benefits meetings in the video
below.
For additional HR guidance, visit our Human
Resources section.
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