The Washington Report
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August 10, 2022
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.
Legislative
Inflation Reduction Act Passes Senate; Includes Health, Tax, and Energy Provisions
On August 7, 2022, the Inflation Reduction Act (H.R. 5376) passed in the Senate 51–50, with Vice-President Harris casting the tie-breaking vote. Among other items, the bill addresses health, tax, climate change and clean energy issues. The legislation includes provisions for Medicare to negotiate prescription drug costs on certain medications and cap Medicare out-of-pocket drug prices for seniors at $2,000. The bill would also extend Affordable Care Act premium subsidies through 2025, thus avoiding a potential increase for enrollees in January 2023. The House returns to the Hill this week to consider the legislation, where it is expected to pass. President Biden has indicated support for the bill and will most likely sign it into law shortly after House approval. Please refer to the bill text for specific details.
The full text of H.R. 5376 is available here.
The White House Statement of Administration Policy is available here.
August Congressional Recess Update
After the House returns for its unscheduled vote this week, both chambers are expected to be officially adjourned for the month of August, returning after the Labor Day holiday.
COVID-19
Biden Administration Releases Two New Reports on Long COVID
On August 3, 2022, the Biden Administration released two new reports on Long COVID. In April, the President issued a Memorandum on Addressing the Long-Term Effects of COVID-19, which called for the creation of these reports. The National Research Action Plan on Long COVID report details current research and “charts a course for future study to better understand prevention and treatment of Long COVID.” The Services and Supports for Longer-Term Impacts of COVID-19 report highlights resources for health care workers, and those impacted by broader effects of COVID-19, including not only Long COVID but also effects on mental health and substance use, and loss of caregivers and loved ones.
The news release is available here.
The April Memorandum on Addressing the Long-Term Effects of COVID-19 is available here.
The National Research Action Plan on Long COVID report and the Services and Supports for Longer-Term Impacts of COVID-19 report are available here.
Health
President Announces EO on Securing Access to Reproductive and Other Health Care Services
On August 3, 2022, President Biden announced an Executive Order (EO) on reproductive health care services. Among other provisions, the EO addresses the ability to travel to seek abortion care in states where it is legal, and directs the Department of Health and Human Services to consider and develop actions related to advancing access to reproductive health care services and promoting compliance with non-discrimination law in obtaining medical care. Please refer to the EO for specific details.
The EO is available here.
Retirement
IRS Issues Notice on Extension of Deadline for Retirement Plans
On August, 2, 2022, the Internal Revenue Service (IRS) issued Notice 2022-33, which extends the deadlines for amending a retirement plan or individual retirement arrangement to reflect certain provisions of Division O of the Further Consolidated Appropriations Act, 2020, P.L. 116-94, 133 Stat. 2534 (2019), known as the Setting Every Community Up for Retirement Enhancement Act of 2019, and Section 104 of Division M of the Further Consolidated Appropriations Act, 2020, known as the Bipartisan American Miners Act of 2019, by modifying Notice 2020-68, and Notice 2020-86. Additionally, Notice 2022-33 extends the deadline for amending a retirement plan to reflect the provisions of Section 2203 of the Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, 134 Stat. 281 (2020).
IRS Notice 2022-33 is available here.
Other HR/Employment
DOL Launches Initiative Focusing on Maternal Health and Workplace Protections for Expectant Mothers
On August 4, 2022, the Department of Labor (DOL) announced a series of August events to highlight the importance of maternal health and workplace protections for expectant and new mothers in coordination with National Breastfeeding Month. On August 10, the DOL’s Wage and Hour Division and Women’s Bureau will present Working Mothers: What to Expect from Your Employer When You’re Expecting, a public webinar from 1:00 to 2:30 p.m. EDT. “The first in the department’s Maternal Health Series, the event will bring together representatives of the division and the bureau, along with representatives of the Equal Employment Opportunity Commission, who will share and discuss federal protections to prevent discrimination against pregnant workers, provide time off for the birth or adoption of a child, and ensure that working mothers may take breaks to express breast milk and do so in private.”
As part of the initiative, the DOL has created Fact Sheets on Birth and Bonding and Job-Protected Leave under the Family and Medical Leave Act. The Maternal Health Series will continue with upcoming events that include state-level webinars on expectant and new mothers’ rights and benefits at the federal and state levels, industry-specific employer compliance events, an event focused on Black maternal health, and another on doulas and midwives.
The news release is available here.
Fact Sheet #28Q: Taking Leave from Work for Birth, Placement, and Bonding with a Child under the FMLA, is available here.
Fact Sheet #28P: Taking Leave from Work When You or Your Family Member Has a Serious Health Condition under the FMLA, is available here.
Aon Publications
After Dobbs, Departments Emphasize ACA Contraceptive Coverage Requirements
In the wake of the Supreme Court decision in Dobbs v. Jackson, newly issued frequently asked questions (FAQs) from the U.S. government emphasize that health insurers and employers sponsoring non-grandfathered group health plans must provide coverage for contraceptive items and services, including Food and Drug Administration-approved products and emergency contraceptives under the Affordable Care Act (ACA) preventive care requirements.
The FAQs, issued by the Departments of Labor, Treasury, and Health and Human Services (the Departments), contain guidance to assist plans and issuers to help individuals obtain access to such services without cost-sharing.
The Aon bulletin is available here.
HHS Proposes New Section 1557 Health Care Nondiscrimination Rules
The Department of Health and Human Services (HHS) released a proposed rule on July 25, 2022, (the 2022 Proposed Rule) that would reinstate and broaden the protections under the ACA’s Section 1557 prohibition against discrimination on the basis of race, color, national origin, sex, age, or disability in certain health programs and activities. While similar to the original rules issued in 2016, the 2022 Proposed Rule is not identical. If finalized in its current form, the regulations aim to enhance health care protections for the LGBTQ community, women who need access to reproductive health care, and expand access to health care for individuals with limited English proficiency and disabilities.
The Aon bulletin is available here.
IRS Announces Lower 2023 Affordability Percentage for ACA Employer Mandate
On July 29, 2022, the Internal Revenue Service (IRS) announced that the required contribution percentage used by employers for complying with the ACA’s employer mandate will again decrease for plan years beginning in calendar year 2023.
The Aon bulletin is available here.
Now Available: Legal Consulting & Compliance Quarterly Update
The Retirement Legal Consulting & Compliance practice is pleased to present its Quarterly Update of recent legal developments for the third quarter of 2022. In this issue you will find the following articles:
- Supporting DEI in Retirement Plans
- Cybersecurity Continues to Be a Hot Topic: DOL Audits and Litigation on the Rise
- IRS Pre-Audit Notification and Self-Correction Program for Retirement Plans
- Pooled Employer Plans Provide Cost Savings and Fiduciary Risk Reduction Opportunities
- Federal Court Declines to Enforce Specified Limitation Period
- Sixth Circuit Rejects Employer Attempt to Compel Arbitration
- Quarterly Roundup of Other New Developments
The third quarter 2022 issue of the Retirement Legal Consulting & Compliance Aon Quarterly Update is available here.