Compliance News Week Ending November 22, 2024

Compliance News Week Ending November 22, 2024 

In this Article

1. Updated HIPAA Security Tool 
2. IRS – Health FSA Reminder 

Updated HIPAA Security Tool 

As the HHS Office for Civil Rights continues to enforce the security risk analysis requirement of the Security Rule under HIPAA, they have released a new version of their Security Risk Assessment (SRA) Tool. 

First created in 2014, the SRA Tool is geared towards small- and medium-sized HIPAA-regulated entities to help them identify risks and vulnerabilities in their security policies and procedures.  Regulated entities would include covered entities such as insurers, self-funded group health plans, level funded group health plans as well as business associates. 

The new version of the tool has been updated with the latest cybersecurity guidance, and with enhanced instructions and guidance based on user feedback, making the SRA Tool more user-friendly.

Security Risk Assessment Tool

Health FSA Reminder 

The Internal Revenue Service reminds taxpayers that during open enrollment season for flexible spending arrangements (FSAs) they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans. 

An employee who chooses to participate in an FSA can contribute up to $3,300 through payroll deductions during the 2025 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. 

If the plan allows, the employer may also contribute to an employee's FSA. If the employee's spouse has a plan through their employer, the spouse can also contribute up to $3,300 to that plan. In this situation, the couple could jointly contribute up to $6,600 for their household. 

For FSAs that permit the carryover of unused amounts, the maximum carryover amount to 2025 is $660, increasing from $640 in tax year 2024. The carryover doesn’t affect the maximum amount of salary reduction contributions that can be made.

IRS - Health FSA Reminder

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