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.
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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.
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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.
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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.
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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.
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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
Using HSAs, Health FSAs and HRAs for Over-the-Counter Items
Health savings accounts (HSAs), health flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) may provide tax-free reimbursements of certain over-the-counter (OTC) items. OTC items are generally available to consumers without a prescription.
Inflation Drives 2025 HSA Contribution Limits Up Again
As inflation continues, the IRS has announced higher health savings account (HSA) contribution limits for 2025. The boosted limits give employees more room to save and invest money for medical expenses tax-free.
Everything Employers Need to Know About Overtime Pay Rule Changes
The U.S. Department of Labor (DOL) recently implemented the first phase of a two-step update to overtime pay regulations under the Fair Labor Standards Act (FLSA) that will substantially impact American workplaces.