INSURICA Employee Benefits Insights
Keeping you ahead of the risks and challenges unique to your industry.
January 2023
IN THIS ISSUE
“On October 18, the IRS announced that the annual contribution limit in 2023 for health flexible spending accounts (health FSAs) will be increased to $3,050 — double the $100 increase from 2021 to 2022.
FEATURED ARTICLE
Annual Health FSA Contribution Limit to Increase in 2023
On October 18, the IRS announced that the annual contribution limit in 2023 for health flexible spending accounts (health FSAs) will be increased to $3,050 — double the $100 increase from 2021 to 2022. The maximum carryover amount is also rising. If an employer’s plan allows unused health FSA amounts to be carried over to the following year, the amount will now be $610.
FEATURED ARTICLE
Healthcare Costs to Rise in 2023: Cancer Top Driver
According to professional services firm Aon, the average cost of healthcare for their own employees will increase by 6.5% next year. This is a significant increase from the 3.7% uptick seen in 2022. This cost increases similar to other cost increases mentioned here and likely due to the increased willingness of Americans to go in-person for testing and treatment now that the pandemic has subsided.
FEATURED ARTICLE
How Employers Can Use Benefits to Protect Employees from Inflation
As inflation continues to impact the economy, many employers are trying to help employees with their finances by developing inflation-resistant benefit packages. Offering student loan repayment programs helps employees pay down debt and improve their financial security. This benefit is especially appealing to younger workers whose salaries may not keep up with inflation.
FEATURED ARTICLE
How to Encourage Employees to Use Mental Health Resources
Stressors in the workplace can have a profound impact on mental health. The Deloitte Mental Health 2022 Report revealed that more than 80% of respondents experienced at least one adverse symptom. While these figures are alarming, business organizations have stepped up to provide employees with the support they need. Seven in 10 workers believe their employer is more concerned about employee mental health now than in the past, according to the results of APA’s 2022 Work and Well-being Survey.
FEATURED ARTICLE
Employers Can Help Employees Overcome Burnout with Sabbaticals
Burnout is a real issue for many employees today. According to the 2022 Deloitte Mental Health Report, 55% of employees reported experiencing burnout, which is not good news for employers. In addition, Mercer’s 2022 Inside Employees’ Minds study revealed that burnout due to a demanding workload is one of the top factors for employees considering leaving their job.
Related Articles
Open Enrollment Compliance: Don’t Overlook Required Employee Notices
For many employers, open enrollment is focused on benefit changes, employee elections, and preparing for the upcoming plan year. It is also an important time to review the notices and disclosures that must be provided to employees and other eligible individuals.
IRS Releases Early Signals on 2027 FSA, HSA, and HRA Limits
The IRS is beginning to release early indicators for 2027 inflation adjusted benefit limits, and benefits managers should prepare now. While final numbers will arrive later this fall, preliminary guidance suggests meaningful increases across FSAs, HSAs, and certain HRA structures
The Return of Dependent Eligibility Audits: Why Employers Are Doing Them Again
Dependent eligibility audits are making a comeback. After several years of relative quiet, employers are revisiting audits as a practical way to control costs and ensure plan integrity. The reason is simple: dependent claims are rising, and many employers are discovering that a meaningful percentage of dependents on their plans are not actually eligible. In a high trend environment, employers are looking for solutions that protect the plan without reducing employee benefits — and audits fit that need.