🗓️ February 2025
Keeping HR pros updated with important compliance, benefits, and human resources information.
Upcoming Deadlines
As we approach the end of February, it’s important to stay on top of several key deadlines that may affect your business. Below are some critical dates to keep in mind for compliance with various regulations. Be sure to mark your calendar and plan accordingly to avoid any potential penalties. As always, we are here to support you when you have questions. Reach out to us at .
Mental Health Parity Remains a Top Compliance Priority
The Mental Health Parity and Addiction Equity Act (MHPAEA) is a law that ensures mental health and substance use disorder benefits are covered the same way as medical and surgical benefits. This means health plans can’t have extra rules, costs, or restrictions that make it harder for employees to access mental health care.
The Employee Benefits Security Administration (EBSA), which oversees health plan compliance, has made enforcing this law a top priority.
Why This Matters for Employers & HR Teams
- Mental Health Coverage Rules Are Under Scrutiny – EBSA is focusing on certain plan rules called nonquantitative treatment limitations (NQTLs). These include prior authorization, network restrictions, and visit limits, which may unintentionally create barriers to mental health care compared to medical benefits.
- What You Should Do – Work with your insurance carrier or third-part administrator to check if your health plan follows MHPAEA rules. This means making sure mental health benefits are covered fairly and not subject to extra approvals or higher costs.
- Changes to Be Aware Of – A new final rule was introduced in September 2024, updating some MHPAEA requirements. These changes began January 1, 2025, with additional updates in 2026. However, there is a lawsuit challenging these changes, so some parts of the rule may be delayed or changed.
HR’s Responsibility
For Fully Insured Plans: Most insurance carriers already comply with MHPAEA regulations and are responsible for conducting Nonquantitative Treatment Limitation (NQTL) analyses. They also typically offer resources and support to help employers stay compliant.
For Self-Funded Plans: The responsibility for MHPAEA compliance, benefit design, and plan decisions falls on the employer, not the insurance carrier. Self-funded employers should work with their legal counsel to review:
- Plan Design and how it aligns with MHPAEA requirements.
- NQTL Comparative Analysis to ensure mental health benefits are not more restrictive than medical benefits.
- Fiduciary Attestation Responsibilities to confirm compliance.
Nulty Clients
Your Account Executive will reach out directly with details on how your specific insurance carrier is handling MHPAEA compliance.
For more information, visit the Department of Labor’s MHPAEA page.
Keeping Your Health Plan Compliant: Simple Steps for Success
Managing a health plan might feel overwhelming, but staying compliant doesn’t have to be complicated. By following a few key steps, you can protect your employees, streamline your processes, and ensure your plan meets federal requirements. Here are some practical ways to stay on top of health plan compliance:
- Make sure you have an official plan document and SPD – having a formal plan document and providing employees with a Summary Plan Description (SPD) ensures that everyone understands their benefits and rights. If you’re unsure whether your plan has these documents, checking in with your insurance provider or benefit agent is a great first step.
- Check your pre-tax benefits setup – if your employees pay for health benefits with pre-tax dollars, a section 125 Plan Document is required. This ensures your company is set up correctly and employees can continue saving on taxes while contributing to their benefits.
- Review your plan for fairness – if your health plan treats certain employees differently – such as offering different coverage to leadership teams or salaried staff – it’s important to confirm that your plan meets nondiscrimination rules. This helps ensure that all employees have access to benefits on fair terms.
- Keep COBRA notices up to date – if you offer COBRA coverage, making sure notices go to the right people, including spouses or dependents living at a different address, is a simple way to ensure everyone has the information they need about their coverage options.
- Send the Medicare Part D Coverage Notice – each year, employers must let Medicare-eligible employees know whether their prescription drug plan is creditable (meaning it’s as good as Medicare Part D). This helps employees make informed decisions about their coverage.
By keeping these simple steps in mind, you can feel more confident that your health plan is supporting your employees while staying compliant. If you need assistance, the Nulty team is always here to help!
Review Your Tobacco Surcharge Program to Ensure Compliance
Many employers use a tobacco surcharge to encourage healthier habits, charging tobacco users higher health insurance premiums—unless they complete a smoking cessation program. But lately, these programs have faced legal challenges. Bass Pro Shops recently settled a $4.95 million lawsuit over its surcharge, raising concerns for other employers. Now is a good time to review your program and make sure it meets compliance standards.
Under HIPAA, employers can only charge higher premiums for tobacco users if the surcharge is part of a compliant wellness program. To stay compliant, your program must:
- Limit the Surcharge – Cannot exceed 50% of total coverage costs (employer + employee contributions).
- Offer an Alternative – Employees must have a way to avoid the surcharge, like completing a smoking cessation program.
- Give an Annual Opportunity – Employees must be able to qualify at least once a year, usually during open enrollment.
- Clearly Communicate Options – Plan materials must explain the alternative and note that physician recommendations will be accommodated.
A well-structured program reduces legal risk and keeps you compliant. Need help reviewing yours? We are your Nulty Compliance Team and we’re here to help!
Heart Health Month – Take Charge of Your Heart!
February is Heart Health Month, a time to raise awareness about cardiovascular health and take proactive steps towards a stronger heart. Heart disease remained the leading cause of death in the U.S., but the good news is that small, daily habits can significantly impact your health.
Here are a few simple ways to show your heart some love:
- Move More: Aim for at least 30 minutes of moderate exercise most days of the week. Walking, stretching, and even dancing count!
- Eat Heart-Health Foods: Incorporate more fruits, vegetables, whole grains, and healthy fats (like avocados and nuts) into your meals. Reduce processed foods and added sugars where possible.
- Know Your Numbers: Keep track of key health indicators like blood pressure, cholesterol, and blood sugar levels to stay ahead of potential risks.
- Prioritize Sleep & Stress Management: Lack of sleep and high stress levels can take a toll on your heart. Aim for 7-9 hours of quality sleep and practice mindfulness or relaxation techniques.
- Quit Smoking and Limit Alcohol: If you smoke, consider quitting, and be mindful of alcohol intake, as both can impact heart health.
This month, we encourage you to take one small step towards a healthier heart – whether that’s going for an extra walk, scheduling a check-up, or cooking up some heart-healthy meals. Every effort counts!
Question of the Month
Q: An employer group is changing its lookback method for Family and Medical Leave Act (FMLA) eligibility. Are they required to give employees 60 days’ notice of this change, and is there sample language that must be used for the notice?
A: If an employer changes methods for determining FMLA eligibility, the employer must give all employees at least 60 days’ advance notice of the proposed change. During this 60-day transition period, employees get the benefit of the eligibility method that provides the greatest benefit to the employee. For more information, see the Department of Labor FAQ on the issue. There is no template notice at this time. The employer can simply explain the change and provide contact information for employee questions.
Answers to the Question of the Month are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.
