On May 1, 2025, the IRS released Rev. Proc. 2025-19, announcing the 2026 health savings accounts (HSAs) and high deductible health plans (HDHPs) inflation-adjusted amounts, which are:
Annual HSA contribution limits:
- Self-coverage only: $4,400 ($100 increase from 2025)
- Family coverage: $8,750 ($200 increase from 2025)
- Annual catch-up contribution maximum remains unchanged at $1,000 for HSA-eligible individuals age 55 or older.
Minimum annual HDHP deductible:
- Self-coverage only: $1,700 ($50 increase from 2025)
- Family coverage: $3,400 ($100 increase from 2025)
Maximum annual HDHP out-of-pocket expenses (deductibles, copayments, and other nonpremium amounts):
- Self-coverage only: $8,500 ($200 increase from 2025)
- Family coverage: $17,000 ($400 increase from 2025)
These amounts differ from the Affordable Care Act (ACA) maximum out-of-pocket limits for plan years beginning in 2026 (proposed by the Department of Health and Human Services in October 2025) for non-grandfathered health plans, which are:
- Self-coverage only: $10,150 ($950 increase from 2025)
- Family coverage: $20,300 ($1,900 increase from 2025)
RxDC Reporting Due by June 1, 2025
Group health plans and health insurance issuers must annually submit detailed information on prescription drug and health care spending to the Centers for Medicare and Medicaid Services (CMS).
This reporting is referred to as the “prescription drug data collection” (or “RxDC report”). The next RxDC report is due by Sunday, June 1, 2025, covering data for 2024.
The RxDC report is comprised of several files, including those that require specific plan-level information, such as plan year beginning and end dates and enrollment and premium data.
It also includes files that require detailed information about medical and pharmacy benefits.
Most employers contract with third parties, such as issuers, third-party administrators (TPAs) and pharmacy benefit managers (PBMs), to submit RxDC reports on behalf of their health plans. Employers may work with multiple third parties to complete the RxDC report for their health plans. A health plan’s submission is considered complete if CMS receives all required files, regardless of who submits them.
Action Steps
Employers should start reaching out to their issuers, TPAs or PBMs, as applicable, to confirm that they will submit the RxDC files for their health plans by June 1, 2025.
Employers should also confirm that their written agreements with these third parties address this reporting responsibility. In addition, employers will likely need to provide their third-party vendors with plan-specific information, such as enrollment and premium data, to complete their RxDC submission.
Employers should watch for these vendor surveys and promptly provide the requested information. Because employers with self-funded plans are ultimately responsible for RxDC reporting, they should monitor their TPAs’ or PBMs’ compliance with this reporting requirement.
Employers can review the following resources:
- RxDC reporting webpage
- Frequently Asked Questions
- Reporting instructions (updated January 2025)
- User Manual for submitting RxDC reports
Report: Employee Leave Requests Rose in 2024, Mental Health Among Key Reasons
Employee leave requests increased for the third consecutive year in 2024, according to the 2025 State of Leave and Accommodations report from software firm AbsenceSoft.
As expected, the survey revealed that recovery from an illness or injury was the top reason for employees’ leave requests, with 57% of employers reporting these as a top-three most common cause.
However, managing mental health issues followed closely at 47%, making it the second most common reason for leave requests. Other top reasons included caring for a parent, relative or child and bereavement and pregnancy leave.
Furthermore, mental health conditions were the most frequently cited reason for employees seeking job accommodations in 2024.
Key Findings
The AbsenceSoft report highlighted new trends and challenges organizations face regarding leave and accommodations. Other notable findings included the following:
- The most requested accommodation in 2024 was remote work, followed by intermittent leave and additional breaks. Other common accommodations include specialized equipment or changes in workspace.
- Both employers and employees want a streamlined, transparent process for leave and accommodation requests.
- A positive leave or accommodations experience boosts employee motivation, productivity and workplace loyalty. Conversely, negative experiences can lead to feelings of being undervalued and unsupported.
- Nearly one-third of employers plan to introduce new paid leave benefits in 2025; paid medical and parental leave are the most common additions.
This report shows that leave and accommodations are on the rise. As such, small businesses should be prepared to meet the needs of employees and comply with all applicable federal, state and local rules and regulations.
Check Out the latest Building a Great Culture Webinar Episode
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