The Washington Report
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November 8, 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
CMS Releases Final Rule on CY 2024 OPPS and ASC Payment System; Promotes Pricing Transparency
On November 2, 2023, the Department of Health and Human Services’ Centers for Medicare & Medicaid Services (CMS) announced it is “expanding access to behavioral health services for people with Medicare through coverage of intensive outpatient services and that it is making it easier for the public to learn what a hospital charges for items and services through improved hospital price transparency requirements. These policies are included in the calendar year (CY) 2024 Hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) final rule with comment period released today, which also updates payment rates by 3.1% for hospital outpatient and ASC services for CY 2024.” The provisions of the final rule are effective January 1, 2024. Comments must be received by January 1, 2024. Please refer to the final rule and Fact Sheets for specific details.
The news release is available here.
A Fact Sheet on the CY 2024 OPPS/ASC Payment System final rule is available here.
A Fact Sheet on hospital price transparency is available here.
The CY 2024 OPPS/ASC Payment System final rule is available here.
CMS Announces Final Regulations on PFS and Medicare Part B
Also on November 2, CMS released final regulations that provide finalized policy changes for Medicare payments under the Physician Fee Schedule (PFS), and other Medicare Part B issues, effective on or after January 1, 2024. Among other provisions, the final policies will “expand behavioral health services, advance the President’s Cancer Moonshot, support family caregivers, and accelerate value-based care.” Please refer to the various resources for additional information.
The news release is available here.
A Fact Sheet on the CY 2024 Medicare PFS final rule is available here.
A Fact Sheet on final changes to the Medicare Shared Savings Program is available here.
The CY 2024 PFS final regulations are available here.
Retirement
IRS Releases 2024 Official Indexed Figures for Retirement Plans and Other Employee Benefit Plans; 401(k) Contribution Limit Increases to $23,000 in 2024
The Internal Revenue Service (IRS) issued Information Release 2023-203 on November 1, 2023, providing the 2024 official indexed figures for retirement plans and other employee benefit plans. The IRS issued technical guidance detailing these items in Notice 2023-75. Following are the official limits of most interest to large and medium employers, as well as the official 2024 key employee pay thresholds for top-heavy plans.
- Section 402(g) annual dollar limit for pre-tax contributions to Section 401(k), 403(b), and 457 plans: $23,000 (up from 2023 limit of $22,500)
- Section 414(v) annual dollar limit on catch-up contributions for age 50 and over: $7,500 (unchanged from 2023 limit)
- Section 414(q) pay threshold for highly compensated employees: $155,000 (up from 2023 limit of $150,000)
- Section 415 limit for defined benefit plans: $275,000 (up from 2023 limit of $265,000)
- Section 415 limit for defined contribution plans: $69,000 (up from 2023 limit of $66,000)
- Section 401(a)(17) recognizable pay limit: $345,000 (up from 2023 limit of $330,000)
- Section 416 pay threshold for key employees in a top-heavy plan: $220,000 (up from 2023 limit of $215,000)
IRS Information Release 2023-203 is available here.
IRS Notice 2023-75 is available here.
For more information, see the Aon bulletin entitled IRS 2024 Official Indexed Figures for Retirement Plans and Other Employee Benefit Plans, in the Publications section of this newsletter.
DOL Releases Proposed Rule Updating the Regulation Defining a Fiduciary Under ERISA
On October 31, 2023, the Department of Labor (DOL) released a proposed retirement security rule updating the definition of an investment advice fiduciary under ERISA. According to the DOL news release, the “updated definition of an investment advice fiduciary would apply when financial services providers give investment advice for a fee to retirement plan participants, individual retirement account owners, and others….The proposed rule would also ensure investment professionals are able to compete for business on a level playing field, instead of an unbalanced system that holds advisers to different standards based on their recommended products.”
The proposed rule includes an amendment to the regulation defining when a person renders “investment advice for a fee or other compensation, direct or indirect” with respect to any moneys or other property of an employee benefit plan, for purposes of the definition of a “fiduciary” under ERISA. The proposal also would amend the parallel regulation defining for purposes of Title II of ERISA, a “fiduciary” of a plan defined in Internal Revenue Code Section 4975, including an individual retirement account.
The DOL also published separately amendments to Prohibited Transaction Exemption 2020–02 (Improving Investment Advice for Workers & Retirees) and to several other existing administrative exemptions from the prohibited transaction rules applicable to fiduciaries under Title I and Title II of ERISA.
Additionally, on the same day the DOL released the proposed rule, the White House issued a Fact Sheet on the guidance. Please refer to the resource links provided below for specific details.
Comments on the proposed rule are due on or before January 2, 2024. The DOL anticipates holding a public hearing approximately 45 days following the date of publication in the Federal Register (date unknown).
The news release is available here.
The DOL resource page, Proposed Retirement Security Rule: Definition of an Investment Advice Fiduciary, is available here.
The proposed rule is available here.
The Proposed Amendment to Prohibited Transaction Exemption 2020-02 is available here.
The Proposed Amendment to Prohibited Transaction Exemption 84-24 is available here.
The Proposed Amendment to Prohibited Transaction Exemptions 75-1, 77-4, 80-83, 83-1, and 86-128, is available here.
A White House Fact Sheet is available here.
PBGC Releases Table on Present Value of Maximum Guarantee
On October 30, 2023, the Pension Benefit Guaranty Corporation (PBGC) posted a table showing the applicable present values for 2024 plan years. A two-column spreadsheet version of the table is also available. For additional information please refer to Technical Update 07-04.
The What's New for Employers & Practitioners announcement of the Benefit Restrictions – Present Value of PBGC Maximum Guarantee, is available here.
(A link to the spreadsheet version of the table is available in this announcement.)
Technical Update 07-04 is available here.
Aon Publications
IRS 2024 Official Indexed Figures for Retirement Plans and Other Employee Benefit Plans
The Internal Revenue Service (IRS) issued Information Release 2023-203 on November 1, 2023, providing the 2024 official indexed figures for retirement plans and other employee benefit plans. The IRS issued technical guidance detailing these items in Notice 2023-75.
The Aon bulletin, which provides the official limits of most interest to large and medium employers, as well as the official 2024 key employee pay thresholds for top-heavy plans, is available here.