Human Resources

The Washington Report



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March 22, 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.

Health

 

IRS Releases FAQS About Medical Expenses Related to Nutrition, Wellness, and General Health
On March 17, 2023, the Internal Revenue Service (IRS) posted frequently asked questions (FAQS) that address whether certain costs related to nutrition, wellness, and general health are medical expenses that may be paid or reimbursed under a health savings account (HSA), health flexible spending arrangement (FSA), Archer medical savings account (Archer MSA), or health reimbursement arrangement (HRA). The FAQs address issues such as whether the cost of nutritional counseling, weight-loss programs, gym memberships, and treatment for substance use disorders are considered medical expenses that may be paid or reimbursed under an HSA, FSA, Archer MSA, or HRA.

The news release is available here.

The FAQs are available here.

HHS, CMS Release Initial Guidance on Medicare Drug Price Negotiation Program for 2026 Price Applicability Year
On March 15, 2023, the Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), issued initial guidance detailing the requirements and parameters on key elements of the new Medicare Drug Price Negotiation Program for 2026, the first year the negotiated prices will apply. The new negotiation guidance is in response to the Inflation Reduction Act. This initial guidance is one of a number of steps CMS laid out in the Medicare Drug Price Negotiation Program timeline for the first year of negotiation. The initial program guidance details the requirements and procedures for implementing the new Negotiation Program for the first set of negotiations, which will occur during 2023 and 2024 and result in prices effective in 2026. CMS is seeking comments on several key elements of the program. Comments received by April 14, 2023, will be considered for revised guidance. Please refer to the guidance and corresponding resources for specific details.

The news release is available here.

The guidance is available here.

A Fact Sheet on the Medicare Drug Price Negotiation Program Initial Guidance is available here.

The Medicare Drug Price Negotiation Program timeline for 2026 is available here.

HHS Announces Savings on 27 Medicare Part B Prescription Drugs, Releases Additional Guidance on Medicare Prescription Drug Inflation Rebate Program
On March 15, 2023, as part of the Inflation Reduction Act, HHS and CMS announced 27 prescription drugs for which Part B beneficiary coinsurances may be lower from April 1 through June 30, 2023. Additionally, HHS released a report on how much Medicare Part D enrollees would have saved on vaccine cost-sharing if the Inflation Reduction Act had been in effect in 2021. In coordination with the announcement, HHS and CMS also released additional information about the 27 Part B drugs, as well as other resources and guidance. Please refer to all the resources for specific information.

The news release is available here.

The Fact Sheet: Medicare Prescription Drug Inflation Rebate Program Initial Guidance, is available here.

The Fact Sheet: Medicare Prescription Drug Inflation Rebate Program Part B Rebatable Drug Coinsurance Reduction, is available here.

The Reduced Coinsurance for Certain Part B Rebatable Drugs under the Medicare Prescription Drug Inflation Rebate Program Applicable April 1 – June 30, 2023, is available here.

The initial guidance detailing the requirements and procedures for the Medicare Prescription Drug Inflation Rebate Program, is available here.

The HHS Report: Inflation Reduction Act Research Series: Medicare Part D Enrollee Savings from Elimination of Vaccine Cost-Sharing, is available here.

Departments Issue Federal IDR Process Guidance for Disputing Parties as Related to Surprise Billing
Recently, the Departments of HHS, Treasury, and Labor (Departments) released Federal Independent Dispute Resolution (IDR) Process Guidance for Disputing Parties that is effective for payment determinations made on or after February 6, 2023, for items and services furnished on or after October 25, 2022, for plan years (in the individual market, policy years) beginning on or after January 1, 2022, by an out-of-network provider subject to the Requirements Related to Surprise Billing; Part II, 86 FR 55980, and Requirements Related to Surprise Billing; Final Rule, 87 FR 52618. Payment determinations made before February 6, 2023, for items and services furnished on or after October 25, 2022, for plan years (in the individual market, policy years) beginning on or after January 1, 2022, are subject to a different guidance document, issued on October 31, 2022.

The Federal IDR Process Guidance for Disputing Parties (March 2023), is available here.

The Federal IDR Process Guidance for Disputing Parties (October 2022), is available here.

The most current guidance document related to the Federal IDR process and surprise billing is available here.

Other HR/Employment

 

EEOC Releases APR for FY 2022 and Office of General Counsel FY 2022 Annual Report
On March 13, 2023, the Equal Employment Opportunity Commission (EEOC) released its report on the agency’s performance during the 2022 fiscal year (FY). The EEOC stated it focused on several major areas during FY 2022, including addressing systemic discrimination, advancing racial justice in the workplace, enforcing pay equity, and addressing the use of artificial intelligence in employment decisions. In conjunction with the Annual Performance Report (APR), the agency also released its Office of General Counsel Annual Report for FY 2022 describing the agency’s litigation actions. In FY 2022, the EEOC filed 91 employment discrimination lawsuits including 53 suits seeking relief for individuals, 25 non-systemic suits with multiple victims, and 13 systemic suits. The report includes other detailed litigation statistics and summaries of notable resolutions.

The news release is available here.

The 2022 APR is available here.

The Office of General Counsel FY 2022 Annual Report is available here.

Aon Publications

 

The End Is Near—And It’s Going to Be Confusing!
A Post-Pandemic Guide for Employers After the COVID-19 Emergency Ends and Things Finally Get Back to Normal

President Biden announced that the COVID-19 Public Health Emergency (PHE) and the National Emergency Declaration (NED) will end on May 11, 2023, allowing for plan design and administration to revert to pre-pandemic terms.

This Aon bulletin discusses:

  • The End of the PHE: Options for plan sponsors after the PHE ends on May 11, 2023;
  • The End of the NED: Examples of the impact on COBRA elections, HIPAA Special Enrollment Rights, and Claims Administration;
  • State Coverage Requirements; and
  • Action Steps for Employers.

The Aon bulletin is available here.

 

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