December 2, 2020

Benefits Update: December 2020

Final Rule on Health Care Transparency Issued

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.

Employee Benefits Plan Limits for 2021

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.

Contact an Acrisure Agency Partner today to learn more.

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Important Information:

For additional information, please visit our website at Acrisure.com. Products or services identified herein may not be available in all jurisdictions. The information and descriptions contained herein (a) are not necessarily intended to be complete descriptions of all applicable terms, conditions, and exclusions of the policies referenced, (b) are provided solely for general informational purposes, and (c) should not be viewed as a substitute for legal, regulatory, or other advice on any particular issue or for any particular reason. The advice of a professional should always be obtained before purchasing any insurance product or service, and you should not rely on the information provided herein for the prevention or mitigation of risks or as a full and complete explanation of coverage under any insurance policy. While the information contained herein has been compiled from sources believed to be reliable, no warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein.

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