Optional Rates Reducing for 2024
We are happy to let you know that the Optional Plan rates will be decreasing for 2024. These plans include Fixed Amount and Times Salary Supplemental Term Life, Survivor Income Insurance, Basic Term Life Insurance and AD&D, and Dependent Life Insurance.
The new rates will be in effect beginning January 1, 2024, and will be available on the Online Benefits Website on December 18, 2023.
If you would like to see the rate changes, they are available on our MESSA Gives You Options flyer, which can be found on the Business Administration Center under Education Center.
Learn More About Balance+
MESSA is adding a new medical plan to our available options! MESSA Balance+ features a health savings account (HSA) with the lowest deductible allowed by the IRS for an HSA-eligible plan while offering a lower premium and out-of-pocket maximum for members. Balance+ also includes MESSA’s supplemental plans: Accident, Critical Illness, and Hospital Indemnity plans.
We have two opportunities for you to learn more about Balance+ through a virtual training: Wednesday, October 25, 2023 at 10:00 AM and Wednesday, November 1 at 11:00 AM. Click on a date to register for your training.
We look forward to showing you the ins and outs of Balance+!
Limited Medicare Supplement (LMS) Rates Available
The MESSA LMS and prescription drug plan rates will be effective January 1 – December 31, 2024.
Effective January 1, 2024, the new LMS PDP rates are:
Member Only with Basic Term Life: $568.57
Member Only without Basic Term Life: $564.18
Member and Spouse with Basic Term Life: $1,132.75
Member and Spouse without Basic Term Life: $1,128.36
Spouse Only: $564.18
Sponsored Dependent Age 65 & Over: $564.18
State and federal taxes and fees are included in the rates listed above.
Plan Highlights Are Now Available on the Business Administration Center
MESSA has now added your plan highlights onto the Business Administration Center under the Reports tab. These plan highlights will offer a full explanation of each plan available, and will be kept up to date with current and upcoming plans.
Affordability Threshold in 2024 is Decreasing to 8.39 Percent
The affordability threshold will decrease in 2024 compared to the 2023 affordability threshold. The affordability threshold for 2024 is 8.39 percent which is down significantly from the 9.12 percent affordability threshold from 2023. The significant drop in the affordability threshold compared to 2023 places employers who are toeing the line of the affordability threshold in danger of being subject to a potential section 4980H(b) penalty if the price of coverage is not reduced for self-only coverage.
Additionally, the IRS has begun to strictly enforce the section 4980H(b) penalty. The IRS is checking to make sure employers who reported using the Form W-2 affordability safe harbor on line 16 of the Form 1095-C, the 2F code, actually qualified for the safe harbor. This is easy for the IRS to verify as it has access to an employer’s Forms W-2. Shockingly, the IRS appears to be penalizing all employers who utilized the Form W-2 affordability safe harbor but actually failed to qualify for the safe harbor. This is against the clear language of the ACA and the accompanying regulations.
As a result of the IRS’s stringent position, employers with a low participation rate should strongly consider utilizing the affordability threshold percentage of 8.39 percent when offering coverage for 2024. The final regulations specifically allow an employer to base an employee’s contribution amount on a “consistent percentage of all Form W2 wages…” (see section 54.4980H-5(e)(2)(ii)(A)). Therefore, an employer could guarantee that it will always meet the Form W-2 affordability safe harbor by utilizing a consistent percentage that is less than or equal to the required contribution percentage (8.39 percent in 2024) for the applicable tax year. If an employee of any employer rejects coverage and signs the offer clearly rejecting the affordable coverage offered, any appeal for that particular employee will be easy.
Congratulations to Our Winners!
We recently sent out a survey requesting information from our employers on how they feel MESSA is doing and what we can improve on in the future. Those who filled out the survey had the option to put their name into a drawing for a $50 Amazon gift card, and we’ve pulled our winners!
- Carol from Carrollton Public Schools
- Heather from Kalamazoo Public Schools
- Angela from Richmond Community Schools
- Sharon from Engadine Consolidated Schools
Questions about your MESSA benefits? Call MESSA Group Services at 888-888-4167