The Washington Report

April 24, 2024

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

 

HHS/OCR Issue Final HIPAA Privacy Rule to Support Reproductive Health Care
On April 22, 2024, the Department of Health and Humans Services’ (HHS’) Office for Civil Rights (OCR) issued a final rule, entitled HIPAA Privacy Rule to Support Reproductive Health Care Privacy. The final rule strengthens the HIPAA Privacy Rule by prohibiting the disclosure of protected health information (PHI) related to lawful reproductive health care in certain circumstances. HHS is “issuing this final rule after hearing from communities that changes were needed to better protect patient confidentiality and prevent medical records from being used against people for providing or obtaining lawful reproductive health care.” The final rule:

• Prohibits the use or disclosure of PHI when it is sought to investigate or impose liability on individuals, health care providers, or others who seek, obtain, provide, or facilitate reproductive health care that is lawful under the circumstances in which such health care is provided, or to identify persons for such activities.
• Requires a regulated health care provider, health plan, clearinghouse, or their business associates, to obtain a signed attestation that certain requests for PHI potentially related to reproductive health care are not for these prohibited purposes.
• Requires regulated health care providers, health plans, and clearinghouses to modify their Notice of Privacy Practices to support reproductive health care privacy.

The final rule is effective on June 25, 2024. Please refer to the final rule for compliance date.

The news release is available here.

The final rule is available here.

HRSA Publishes Final Rule on Drug Pricing Program; ADR
On April 18, 2024, HHS’ Health Resources and Services Administration (HRSA) released a final rule which applies to all drug manufacturers and covered entities that participate in the 340B Program. (The HRSA administers Section 340B of the Public Health Service Act, which is referred to as the “340B Drug Pricing Program” or the “340B Program.”) The final rule establishes the requirements and procedures for the 340B Program’s administrative dispute resolution (ADR) process. This final rule revises the 340B ADR process set forth in the Code of Federal Regulations. The final rule is effective on June 18, 2024.

The final rule is available here.

Retirement

 

DOL Releases Proposed Information Collection Request for Public Comment; Retirement Savings Lost and Found
On April 16, 2024, the Department of Labor (DOL) released a proposal to collect information in order to establish the Retirement Savings Lost and Found online searchable database described in Section 523 of ERISA and to connect missing participants and other individuals who have lost track of their retirement benefits with such benefits. The proposal solicits specific information from administrators of retirement plans subject to ERISA. Comments must be received by June 17, 2024.

The news release is available here.

The notice of proposed information collection is available here.

IRS Releases Notice on Certain RMDs for 2024
On April 16, 2024, the Internal Revenue Service (IRS) released Notice 2024-35, which provides relief with respect to certain required minimum distributions (RMDs) that are not made in 2024. This relief was provided with respect to certain RMDs in 2021, 2022, and 2023, and is being extended in this Notice to certain RMDs in 2024. Specifically, the Notice provides that if certain requirements are met, a plan will not fail to be qualified for failing to make a specified RMD in 2024, and a taxpayer will not be assessed an excise tax for failing to take the RMD. The Notice also announces that the final regulations intended to be published relating to RMDs are anticipated to apply for purposes of determining RMDs for calendar years beginning on or after January 1, 2025.

IRS Notice 2024-35 is available here.

Other HR/Employment

 

EEOC Issues Final Rule on PWFA
On April 15, 2024, the Equal Employment Opportunity Commission (EEOC) issued a final rule and interpretive guidance to implement the Pregnant Workers Fairness Act (PWFA), which requires a covered entity to provide reasonable accommodations to a qualified employee’s or applicant’s known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation will cause an undue hardship on the operation of the business of the covered entity. The PWFA builds upon existing protections against pregnancy discrimination under Title VII of the Civil Rights Act of 1964 and access to reasonable accommodations under the Americans with Disabilities Act. The EEOC began accepting charges of discrimination on June 27, 2023, the day on which the PWFA became effective. Highlights include:

• Examples of reasonable accommodations such as additional breaks to drink water, eat, or use the restroom; a stool to sit on while working; time off for health care appointments; temporary reassignment; temporary suspension of certain job duties; telework; or time off to recover from childbirth or a miscarriage, among others.
• Guidance regarding limitations and medical conditions for which employees or applicants may seek reasonable accommodation, including miscarriage or still birth; migraines; lactation; and pregnancy-related conditions that are episodic, such as morning sickness.
• Guidance encouraging early and frequent communication between employers and workers to raise and resolve requests for reasonable accommodation in a timely manner.
• Clarification that an employer is not required to seek supporting documentation when an employee asks for a reasonable accommodation and should only do so when it is reasonable under the circumstances.
• Explanation of when an accommodation would impose an undue hardship on an employer and its business.
• Information on how employers may assert defenses or exemptions, including those based on religion, as early as possible in charge processing.

Please refer to the final rule for specific details. The final rule becomes effective on June 18, 2024.

The news release is available here.

The final rule is available here.

More information about the PWFA and the EEOC’s final rule, including resources for employers and workers, is available on the EEOC’s What You Should Know About the Pregnant Workers Fairness Act webpage, available here.

IRS Issues FAQs Related to the Tax Treatment of Work-Life Referral Services Provided to Employees
On April 16, 2024, the Internal Revenue Service (IRS) issued Frequently Asked Questions (FAQs) in Fact Sheet 2024-13, related to the tax treatment of work-life referral services provided to employees under an employer’s work-life referral program. A work-life referral program is an employer-funded fringe benefit that provides work-life referral services to eligible employees. The FAQs clarify that, under certain circumstances, the value of work-life referral services provided to employees through a work-life referral program can be excluded from income and employment taxes as de minimis fringe benefits.

The news release is available here.

The FAQs are available here.

Aon Publications

 

CMS Eases Impact of Inflation Reduction Act on Creditable Coverage Testing for Employer Plans
On April 1, 2024, the Centers for Medicare & Medicaid Services (CMS) issued final instructions that should allow a greater number of employer-sponsored prescription drug plans to remain “creditable” for Medicare Part D purposes in 2025 than originally anticipated. While this information is good news generally, employers are still required to review their plan designs to determine whether their prescription drug plans will remain creditable in 2025.

The Aon bulletin is available here.