Your top benefits regulatory questions, answered

Navigating the world of regulations can feel like solving a giant, ever-changing puzzle—especially for businesses striving to stay compliant. During our recent regulatory update webinar, we discussed several regulatory and legislative updates businesses need to know about to prepare for the year ahead. We were able to answer many of the questions benefits leaders are asking right now. Spoiler alert: you’re not alone in feeling overwhelmed by the complexity of regulatory compliance!

If you weren’t able to make it to the live webinar, we’ve rounded up the top questions and answers from the event. From deciphering new rules to understanding how changes might impact your organization, these are the insights you need to stay ahead of the curve.

1. What are the 2025 HSA contribution limits and how do employer HSA contributions impact the amount employees contribute?

For Health Saving Accounts (HSAs), the 2025 contribution limits increase to $4,300 for individuals and $8,550 for families. Those who have an HSA-qualified health plan can discover increased savings. The catch-up contribution for individuals aged 55 and above remains unchanged at $1,000.

Employer contributions also count toward contribution limits, so employees should monitor their total annual contributions to ensure they remain under the established limit.

2. What are HOPE accounts and how would they impact employers?

The Health Out-of-Pocket Expense (HOPE) Act is a bipartisan plan proposed to Congress that would create savings accounts designed to help employees manage their healthcare expenses. HR 9394 would create HOPE accounts, enabling all Americans with Affordable Care Act (ACA) qualified insurance—especially middle- and lower-income individuals—to save for out-of-pocket healthcare costs without a high-deductible health plan (HDHP). Overall, HOPE accounts would include the following features:

• Portable. Funds would follow employees if they change jobs.

• Accessible. Available to anyone with an ACA-qualified health plan and no requirement to enroll in an HDHP.

• Tax-free growth. Funds in the HOPE account (and any investments) would grow without incurring tax.

As a tax-advantaged account, HOPE accounts aim to encourage individuals to save for medical expenses, take proactive steps to maintain their health, and make informed decisions about their care. These accounts would be funded by both employers and employees, offering a tax-advantaged way to build a reserve for healthcare needs without the need to be enrolled in an HDHP.

For employers, HOPE accounts could have several impacts. They may serve as an attractive benefit to help recruit and retain top talent, as employees often prioritize comprehensive healthcare options. Additionally, by encouraging preventative care and healthier lifestyles, HOPE accounts could potentially reduce healthcare costs for both employers and employees.

However, implementing such accounts might require administrative adjustments and upfront investments to integrate them into existing benefits packages. Employers would also need to educate their workforce on how to use these accounts effectively to maximize the benefits for both parties.

3. Do you have suggestions for communicating HSA tips to employees when the benefit plan year is off cycle from the calendar year?

When communicating HSA tips to employees, it’s important to provide timely, clear, and practical guidance. Start by educating employees on how their benefit plan year impacts their HSA contributions and usage. Clarify any confusion about annual contribution limits, particularly since these limits are set at the calendar year level by the IRS. This ensures employees understand how to maximize their HSA potential without exceeding contribution limits.

To make communications more actionable, provide tips in a structured format. For example:

• Remind employees to review their HSA balances regularly and plan expenses accordingly.

• Share a timeline for submitting eligible expenses or making contributions based on IRS deadlines.

• Offer examples of qualified HSA expenses to encourage smarter usage.

Lastly, consider ongoing education with periodic reminders or workshops. For instance, mid-year updates can highlight any changes in HSA rules or provide a refresher on tax benefits. Providing resources like an FAQ or access to one-to-one support will also help employees feel confident in managing their HSA throughout the year, regardless of the plan’s cycle.

4. Does the expiration of the telehealth safe harbor relief only apply to programs associated with HDHPs?

The telehealth safe harbor relief was first included in the Coronavirus Aid Relief, and Economic Security Act (CARES Act). The telehealth measure was then extended through the Consolidated Appropriations Act of 2022 and the Consolidated Appropriations Act of 2023. The telehealth relief allowed HDHPs to cover telemedicine and other remote care service expenses before the deductible was met, with no effect on an individual’s ability to continue to contribute to their HSAs for plan years beginning on or before December 31, 2021 and ending before January 1, 2025.

The expiration of this safe harbor relief impacts HDHPs that provided telehealth services at low- or no-cost to participants who had not met the HDHP’s deductible. If you offered telehealth services outside of your HDHP offering, contact your plan sponsor to get the most accurate coverage information.

5. How will the expiration of telehealth provisions impact employees enrolled in HDHPs?

Since this relief expired, participants in an HDHP that includes no-cost sharing telehealth services will no longer be eligible to make contributions to an HSA for plan years beginning on or after January 1, 2025. Essentially, HDHPs compatible with HSAs can no longer cover telehealth services before the deductible is met. To preserve HSA-compatibility, plan sponsors should ensure that their HDHP plan design complies with current HSA eligibility rules.

6. Why are IRS limit increases released at different times throughout the year?

The subsequent year’s healthcare Flexible Spending Account (FSA) and transportation plan limits are indexed based on the 12-month period ending in August. These numbers are not available until later in the year after HSA limits have been announced; the limits must be calculated and reviewed before they can be published.

7. What are the preventive care expenses covered by an HDHP?

Preventive care expenses covered by an HDHP typically include annual check-ups, immunizations, screenings, and certain medications for chronic conditions. These are often covered without requiring employees to meet their deductible. As coverage details can vary, it’s essential for employees to check with their specific plan.

In 2025, the IRS expanded what is considered preventive care for HDHPs, including:

• Over-the-counter (OTC) oral contraceptives: Now covered, including emergency contraceptives and male condoms.

• Breast cancer screening: Extended to individuals not yet diagnosed with breast cancer, emphasizing early detection and prevention.

• Continuous glucose monitors: Available for those diagnosed with diabetes, highlighting ongoing care and management.

• Insulin products safe harbor: Provides coverage for certain insulin products regardless of whether insulin is prescribed for diabetes treatment or for prevention of complications, such as the exacerbation of diabetes or the development of a secondary condition.

8. Does the preventive care expansion begin January 1st or the company plan year?

The Preventive Care Expansion begins based on the company’s plan year, not January 1. This means the changes will take effect at the start of your organization’s next plan year, as outlined in your health benefits agreement.

If your company’s plan year aligns with the calendar year, the expansion will begin on January. However, if the plan year starts at a different time, such as July 1, the changes will take effect on that date instead. Be sure to review your specific plan details to confirm the timing.

9. How can I stay updated on benefits policy and regulatory changes?

A good place to get all the information you need about recent and upcoming regulatory changes is right here, on the Remark blog. Our Regulatory Updates section covers important legislative updates that could affect your benefits, so subscribe today to stay current on industry news.