As we enter 2025, several key updates in healthcare and insurance policies will impact employers and workers across Washington. Here’s a breakdown of the most significant developments:
IRS Expands Preventive Care Benefits for HDHPs and Reimbursable Expenses
The IRS has issued new guidelines (Notice 2024-75) expanding preventive care benefits under high-deductible health plans (HDHPs). The update allows these plans to cover certain over-the-counter contraceptives without a deductible or with a lower deductible.
Other highlights of the update include:
- Breast cancer screenings for individuals without a diagnosis are now categorized as preventive care.
- Continuous glucose monitors for individuals with diabetes qualify as preventive care.
- Certain insulin products are covered under a safe harbor provision, regardless of their prescribed use.
In addition, the IRS has updated reimbursable expenses under Code 213(d) to include condoms. These expenses can be covered by HSAs, FSAs, Archer MSAs, or HRAs, or deducted on tax returns if other requirements are met.
Washington’s WA Cares Fund Remains Unchanged
Washington voters have declined Initiative 2124, leaving the WA Cares Fund intact. The WA Cares Fund has been funded by automatic contributions from Washington workers since 2023. Employers based in Washington state are responsible for collecting premiums and tracking employees who are exempt from the WA Cares Fund.
Washington residents interested in learning more about the program can attend the WA Cares Basics: What Workers Need to Know webinar on January 15, 2025.
Kaiser Permanente Location Changes in Western Washington
To better align resources with patient needs, Kaiser Permanente will close its Ballard, Gig Harbor, and Poulsbo medical facilities effective December 13, 2024. Members impacted by the closures will still have available options.
- Patients in Seattle can visit the Capitol Hill, Northgate, or Rainier medical centers.
- Patients on the Kitsap Peninsula can access care at Silverdale or Port Orchard locations.
- The Tacoma Medical Center remains available for members closer to Tacoma.
Additionally, Kaiser Permanente’s 24/7 virtual services continue to offer access to care anytime, anywhere.