The Washington Report
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June 28, 2023
Note to Subscribers
The Washington Report will not be published on July 5, 2023. Look for your next Aon Washington Report on Wednesday, July 12.
Executive/Legislative
White House Issues Third EO Addressing Contraceptive Access
On June 23, 2023, the White House issued its third Executive Order (EO) focusing on contraceptive access. In its Fact Sheet, the Administration provided an update on the work of the Task Force on Reproductive Healthcare Access, as well as outlined provisions found in the latest EO. This third EO directs agencies to: “improve access and affordability for women with private health insurance; promote increased access to over-the-counter contraception; support access to affordable contraception through Medicaid and Medicare; ensure service members, veterans, and federal employees are able to access contraception; bolster contraception access across federal health programs; and support access for college students and employees.” The Task Force on Reproductive Healthcare Access will be charged with overseeing implementation of the EO in the months ahead.
The White House Fact Sheet is available here.
The EO is available here.
House Approves CHOICE Arrangement Act
On June 21, 2023, the House approved with a 220–209 vote H.R. 3799 (Custom Health Option and Individual Care Expense Arrangement Act or the CHOICE Arrangement Act). The bill provides statutory authority for regulations that allow employers to offer individual coverage health reimbursement arrangements (ICHRAs). Under ICHRAs, employers agree to reimburse employees for incurred medical expenses up to a limit for a specified period (e.g., a calendar year) and employees obtain their own individual coverage that meets certain requirements of the Affordable Care Act. Payments or reimbursements under an ICHRA are tax-exempt and may only be made for medical care provided when the employee was covered by a plan that meets the requirements.
In 2019, the Departments of the Treasury, Labor, and Health and Human Services issued regulations that allow employers to offer employees ICHRAs if certain conditions are met: 1) the employer offers ICHRAs to all employees in the same class (e.g., all full-time employees) without the choice of an employer-sponsored group health plan; and 2) the employer offers the ICHRA to all employees within the class on the same terms (i.e., the amount of available funds and the terms and conditions of the benefits). The regulations also specify certain notice and verification requirements with respect to ICHRAs.
In a Statement of Administration Policy, the White House responded that it strongly opposes H.R. 3799. The bill moves to the Senate, where passage appears unlikely.
The full text of H.R. 3799 is available here.
The White House Statement of Administration Policy is available here.
Congress Adjourns for Summer Recess
Congress has adjourned for its holiday recess. The chambers are scheduled to return to the Hill the week of July 10, 2023.
Health
IRS Releases Notice Related to COVID-19 and Preventive Care for Purposes of HDHPs
On June 23, 2023, the Internal Revenue Service (IRS) published Notice 2023-37, which modifies prior guidance regarding benefits relating to testing for and treatment of COVID-19 that can be provided by a health plan that otherwise satisfies the requirements to be a high-deductible health plan (HDHP) under Section 223(c)(2)(A) of the Internal Revenue Code. Specifically, this Notice provides that the relief described in Notice 2020-15 applies only with respect to plan years ending on or before December 31, 2024. Additionally, Notice 2023-37 clarifies whether certain items and services are treated as preventive care under Section 223(c)(2)(C). Please refer to the guidance for specific details.
For more details, see IRS Pulls Plug on COVID-19 Relief for HDHPs, Says Coverage of COVID-19 Testing and Treatment Before Satisfying Deductible Will Not Be Permitted After Plan Years Ending in 2024 in the Publications section of the newsletter.
IRS Notice 2023-37 is available here.
Aon Publications
IRS Pulls Plug on COVID-19 Relief for HDHPs, Says Coverage of COVID-19 Testing and Treatment Before Satisfying Deductible Will Not Be Permitted After Plan Years Ending in 2024
The Internal Revenue Service (IRS) has issued guidance ending the special relief that permitted an employer-sponsored health savings account-qualified high-deductible health plan (HDHP) to pay for COVID-19 treatment and testing before the HDHP deductible is satisfied.
The Aon bulletin is available here.