In the December Monthly Minute, we are wrapping up key benefits developments (including a SECURE 2.0 refresh, a look at HIPAA reproductive health care privacy, and the revised NQTL requirements) and offer action items for employers to consider to facilitate compliance.
Wrapping Up Key Benefits Developments
SECURE 2.0 Refresh: As reported previously in the November Monthly Minute, Secure 2.0 brought about many required and optional changes for qualified retirement plans. A few highlights to keep in mind as plans enter the new year include:
- Effective 2025, plans may allow participants age 60-63 to make larger catch-up contributions.
- High-income participants can only make Roth catch-up contributions (implementation delayed until 2026, but plans should prepare for compliance in 2025).
- Plans established after December 29, 2022, must provide auto-enrollment and auto-escalation features.
- Effective 2025, long-term part-time ( LTPT) employees (those with at least 500 hours for 2 consecutive years) must be permitted to make 401(k)/elective deferrals.
HIPAA Reproductive Health Privacy Compliance: The HIPAA Privacy rule was recently amended to provide for enhanced protections with respect to reproductive health care, as addressed in the September Monthly Minute. Operational compliance is required by December 23, 2024. Here are a few action items for group health plans to take to aid in compliance:
- Review HIPAA policies and procedures to include information about the new reproductive health care privacy rules.
- Include examples of reproductive health care, and what types of uses and disclosures are prohibited.
- Become familiar with HHS’ model attestation (available here).
- The attestation is generally required for health oversight requests, judicial/administrative proceedings, law enforcement purposes, and coroner/medical examiner requests that potentially related to reproductive health care.
- Confirm whether or not the plan’s business associates are prepared to comply with the new rules, and whether BAA updates are needed (updates to Notice of Privacy Practices are not required until Feb. 16, 2026).
New NQTL Rules: 2024 ushered in revised mental health parity rules that impact the nonquantitative treatment limitation (NQTL) requirements that apply to group health plans. The new rules included revised definitions for key terms that create the framework for NQTL comparative analyses, updated comparative analysis content requirements, and created new fiduciary responsibilities. What steps should plans be taking to comply?
- Find out if your TPA is complying with the new MHP rules.
- Prudently select a service provider to prepare and document a comparative analysis for each NQTL.
- Request a copy of the NQTL list and each comparative analysis.
- Monitor the service provider (ask questions, engage in dialogue, and document your process).
- Make sure the plan is ready to promptly provide the comparative analysis upon request.
- Complete a fiduciary certification.
KMK Comments: Before settling in for a long winter’s nap, be sure to work with your benefits team and legal advisers to confirm compliance with these (ever-evolving) benefits rules. See you next year!
