Compliance Recap | May 2025
PCORI filing is due in July. The U.S. Departments of Labor, Health and Human Services, and the Treasury jointly announced a pause in enforcement of the 2024 Final Rule implementing the Mental Health Parity and Addiction Equity Act (MHPAEA). The IRS Released 2026 cost-of-living adjustments for HSAs, HDHPs, and EBHRAs.
Employers with self-insured health plans including health reimbursement arrangements (HRAs) must pay a fee to fund the Patient Centered Outcomes Research Institute (PCORI). HRAs offered with self-insured group medical plans are not subject to separate PCORI fees.
IRS Form 720 is used to report and pay the annual PCORI fees, which are due by July 31st of the year following the last day of the plan year.
For policy and plan years ending:
Note: If you have a level-funded, self-funded, or HRA plan, be on the lookout for an email from Morris & Garritano by early July.
The U.S. Departments of Labor, Health and Human Services, and the Treasury jointly announced a pause in enforcement of the 2024 Final Rule implementing the Mental Health Parity and Addiction Equity Act (MHPAEA). This action is tied to a legal challenge filed earlier this year and reflects a broader regulatory review currently underway.
The Departments will not enforce the new requirements from the 2024 Final Rule until at least 18 months after the litigation concludes. However, this pause does not eliminate existing compliance obligations under earlier rules.
Employers must continue complying with the original MHPAEA requirements, including performing and documenting comparative analyses of nonquantitative treatment limitations (NQTLs) as required by the Consolidated Appropriations Act, 2021.
Requirements from the 2024 Final Rule—such as fiduciary certifications and enhanced content standards for analyses—are temporarily suspended during this nonenforcement period.
The Departments are actively reviewing their MHPAEA enforcement strategies, though no specifics have been released yet regarding changes to current or future investigations.
For more information, refer to resources such as the 2013 MHPAEA final rules and the MHPAEA Implementation FAQs.
The IRS announced the 2026 inflation-adjusted amounts that apply to health savings accounts (HSAs), excepted benefit health reimbursement arrangements (EBHRAs), and high-deductible health plans (HDHPs).
The maximum permitted catch-up HSA contribution for eligible individuals who are 55 or older during 2026 is not inflation adjusted and remains unchanged for 2026.
| 2025 | 2026 | |||
| Applicable Limit | Self-Only | Family | Self-Only | Family |
| HSA maximum contribution | $4,300 | $8,550 | $4,400 | $8,750 |
| HSA maximum catch-up contribution | $1,000 | $1,000 | $1,000 | $1,000 |
| HDHP minimum deductible | $1,650 | $3,300 | $1,700 | $3,400 |
| HDHP maximum out-of-pocket expense (in network) | $8,300 | $16,600 | $8,500 | $17,000 |
The higher HSA contribution limit and HDHP out-of-pocket maximum will take effect January 1, 2026. The higher HDHP deductible limits will increase for plan years that begin on or after January 1, 2026.
| 2025 | 2026 | |
| EBHRA maximum employer contribution | $2,150 | $2,200 |
Q:If a father and adult daughter work for the same company, but the daughter is enrolled in the father’s family HDHP, would the daughter be allowed to contribute to their own HSA account? Is the daughter considered to be a dependent?
A: Yes, if the father and child are both enrolled in a family HDHP, both the father and the child can independently contribute up to the family HSA limit to their own HSA. This is a different rule than the one that applies to a husband and wife in a family HDHP. In that case, the family contribution applies to both spouses together. But in this situation, both the father and child can each contribute the family HSA limit to their own HSA.
Resources
Overview of ACA affordability requirements for employer-sponsored health coverage, including annual percentage thresholds, IRS safe harbors (FPL, Rate of Pay, Form W-2), and key factors affecting employee contributions such as flex credits, opt-out incentives, and wellness programs.
The IRS released the 2027 health savings account (HSA) annual contribution limits and high deductible health plan (HDHP) requirements in IRS Rev. Proc. 2026-24.
Each year, employers may be responsible for reporting and paying the Patient-Centered Outcomes Research Institute (PCORI) fee. Here’s a high-level overview of what to expect for the 2026 filing cycle.
What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
What "covered" should feel like.
