The Washington Report

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February 1, 2023

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Executive

SOTU Address Scheduled for February 7
President Biden is scheduled to deliver his second State of the Union (SOTU) address on Tuesday, February 7, 2023.

Health

Departments Release Proposed Rules on Coverage of Certain Preventive Services Under ACA
On January 30, 2023, the Departments of Health and Human Services, Labor, and the Treasury (Departments) released proposed rules entitled “Coverage of Certain Preventive Services Under the Affordable Care Act” (ACA). These proposed rules would amend regulations regarding coverage of certain preventive services under the ACA, which, consistent with guidelines supported by the Health Resources and Services Administration, generally require non-grandfathered group health plans and non-grandfathered group or individual health insurance coverage to cover certain contraceptive services without cost-sharing. Current regulations include exemptions for group health plans, institutions of higher education arranging student health insurance coverage, health insurance issuers, and individuals with religious or moral objections from providing (or in the case of individuals, purchasing or enrolling in) coverage of contraceptive services. The current regulations also provide an optional accommodation for such group health plans and sponsors of student health insurance coverage that allows objecting employers and colleges and universities to remove themselves from providing birth control coverage while ensuring women and covered dependents enrolled in their plans can access contraceptive services at no additional charge.

The proposed rules would leave in place the existing religious exemption for entities and individuals with objections, as well as the optional accommodation for contraception, while also “establishing a new pathway—referred to as an individual contraceptive arrangement—that individuals enrolled in plans or coverage sponsored, arranged, or provided by objecting entities that are not eligible for or have not opted for the existing accommodation may use to obtain contraceptive services at no cost directly from a willing provider or facility that furnishes contraceptive services. The individual contraceptive arrangement would not require any involvement on the part of an objecting entity. Under the HHS proposed rules, a provider or facility that furnishes contraceptive services in accordance with the individual contraceptive arrangement for eligible individuals would be able to be reimbursed for its costs by entering into an arrangement with an issuer on a federally-facilitated Exchange or state-based Exchange on the federal platform, which in turn would seek an Exchange user fee adjustment. The proposed rules also would rescind the moral exemption rule.”

Comments on the proposed rules are due by April 3, 2023. For additional details, please refer to the proposed rules.

The news release is available here.

The Fact Sheet is available here.

The proposed rules are available here.

Other HR/Employment

EEOC Releases Updated Resource Document Explaining ADA Requirements for Individuals With Hearing Disabilities in the Workplace
On January 24, 2023, the Equal Employment Opportunity Commission (EEOC) released an updated resource document, Hearing Disabilities in the Workplace and the Americans with Disabilities Act, explaining how the Americans with Disabilities Act (ADA) applies to job applicants and employees who are deaf or hard of hearing or have other hearing conditions. This latest document outlines how certain pre- and post-job offer disability-related questions can violate the ADA, describes easy-to-access technologies that can make providing a reasonable accommodation for a hearing disability free or low-cost, addresses employer concerns about safety, and shares scenarios of potential discrimination.

The news release is available here.

The Hearing Disabilities in the Workplace and the Americans with Disabilities Act resource document is available here.

Aon Publications

Aon Publications on Federal Developments in 2022
Aon provided insights into numerous developments last year that had an impact on employer-provided health and retirement plans and human resources policies and practices. Aon bulletins highlighted issues for employers arising out of the Inflation Reduction Act of 2022 and regulatory guidance issued under the No Surprises Act. They also provided analysis of developments involving COVID-19 vaccination requirements, ERISA fiduciary investment regulations, telehealth for high-deductible health plans, Affordable Care Act requirements for transparency in coverage, health care nondiscrimination rules, filing and reporting requirements, mental health parity, crypto risks and cybersecurity in retirement plans, the impact of the U.S. Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization on employers and health insurers, and many other matters affecting the workplace and employee benefits. In addition, the 2022 Aon Compliance Calendar alerted employers to significant compensation and benefit due dates for retirement and health and welfare plans and Retirement Legal Consulting & Compliance Quarterly Updates kept employers on top of new regulatory guidance, court rulings, and hot topics in the retirement plan arena.

The bulletin, which gathers together 2022 U.S. Aon bulletins with direct links to the publications, is available here.

Annual Medicare Part D Disclosure
Since 2006, an annual disclosure is required for most employers that provide prescription drug coverage to individuals who are Medicare Part D-eligible, regardless of whether an employer provides retiree prescription drug benefits.

For 2023 calendar year plans, the disclosure must occur no later than March 1, 2023. The annual disclosure must occur for any employer that provides prescription drug coverage to anyone who is Medicare Part D-eligible.